Economics • Banking & FinanceMedium
What distinguishes Treasury Bills from dated government securities in the Indian financial market?
A. Treasury Bills are short-term money market instruments issued at a discount, whereas dated securities are long-term debt instruments carrying periodic coupon interest✓ Correct Answer
B. Treasury Bills are issued exclusively by commercial banks, while dated securities are issued by foreign institutional investors
C. Treasury Bills have maturities exceeding ten years, while dated securities mature within fourteen days
D. Treasury Bills carry variable floating interest rates, whereas dated securities carry zero interest
💡 Solution & Explanation
Treasury Bills are short-term money market instruments issued by the central government with maturities up to 364 days at a discount to face value, redeeming at par. Dated government securities are long-term debt obligations with fixed or floating coupon payments paid semi-annually. Both instruments are sovereign debt products traded actively.
More Economics Banking & Finance questions
- How are Non-Performing Assets officially classified by commercial banks if a borrower fails to make interest…
- Which organization in India operates the Unified Payments Interface (UPI) and the Immediate Payment Service…
- What is the primary operational purpose of Open Market Operations (OMOs) conducted by the Reserve Bank of…
- Which committee recommended the establishment of the 'Monetary Policy Committee (MPC)' in India to…
- Under the Prompt Corrective Action (PCA) framework of the Reserve Bank of India, which of the following is a…