Question

Consider the following statements in context with Treasury Bills?
1. They are issued by Government of India on behalf of Reserve Bank of India
2. They are mostly for Short term borrowings
3. Treasury Bills can not be purchased by any person resident of India
Which among the above is / are correct ?
(A)All are correct
(B)2 & 3 are correct
(C)Only 2 is correct
(D)Only 3 is correct

Answer 1

Answer:

Explanation:

Only 2 is correct

Answer 2

Option c is the correct answer.

'They are mostly for Short term borrowings.' is true in context with Treasury Bills.

Why other statements are wrong?

• Treasury bills are issued by Reserve Bank of India.
• Treasury Bills can be purchased by any person resident of India

Treasury bills are financial instrument of money market that are auctioned for short term requirement of funds by the central government. They can be of 91 days, 182 days or 364 days.