Bissoy.com
Doctors Medicines MCQs Q&A

Which are the correct statement(s) related to the "T - Bill' Treasury bill? (a) They are issued by RBI. (b) They are issued by Govt. of India. (c) Treasury bills pay no interest. (d) These are long-term debt instruments.

Which are the correct statement(s) related to the "T - Bill' Treasury bill? (a) They are issued by RBI. (b) They are issued by Govt. of India. (c) Treasury bills pay no interest. (d) These are long-term debt instruments. Correct Answer (b) and (c) only

The correct answer is (b) and (c) only.

Key Points

Treasury bills (T - Bill):

  • Treasury bills are issued when the government needs money for a short period. Hence, statement (d) is incorrect
  • These bills are issued only by the central government, and their interest in them is determined by market forces. Hence, statement (a) is incorrect and statement (b) is correct.
  • Treasury bills, or T-bills, have a maximum maturity period of 364 days. So, they are categorized as money market instruments (the money market deals with funds with a maturity of less than one year).
  • At present, treasury bills are issued in three maturities — 91-day, 182-day, and 364-day. In 1997 the government also issued 14-day immediate treasury bills.
  • Treasury bills were first issued in India in 1917.
  • They are issued via auctions conducted by the Reserve Bank of India (RBI) at regular intervals. Individuals, trusts, institutions, and banks can purchase T-Bills.
  • Treasury bills are issued at a discount to the original value and the buyer gets the original value upon maturity. Hence, statement (c) is correct

Additional Information

Government Securities:

  • Government Securities are securities issued by Central Government to borrow from the financial market to meet its fiscal deficit. 
  • Properties:
    • Long-term maturities above 1 year and up to 40 years
    • Coupon (interest) rate paid on face value payable half-yearly
    • Effective yield/returns depend on the issue price

Related Questions

Which of the following statement is true regarding bills of parliament? Bills introduced in the Parliament are of two kinds: public bills and private bills (also known as government bills and private members’ bills respectively). The bills introduced in the Parliament can also be classified into four categories: Formal bills, Currency bills, Financial bills and Constitution amendment bills Financial bills,  are  concerned with financial matters  like taxation ,public expenditure etc. Constitution amendment bills, which are concerned with the amendment of the provisions of the Constitution.
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If M votes the same way that O dose on all three bills, which of the following can be determined ?
Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements give above is/are correct?
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following must vote in favor of Bill 1 ?
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. If any bill is to be passed,which of the following must be among the legislators who vote in favor of it?
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. The maximum number of favorable votes that Bill 2 could receive is ---
h,J,K,L,M,N and O are the only legislators eligible to vote on Bills 1,2 and 3, each of which will be passed if at least four legislators eligible vote in favor of it. each legislator must vote on all three bills; on abstentions are possible. The following is known : *H must vote against all three bills; each of the other legislators must vote in favor of at least one bill and against at lest one bill. *j must vote against Bills 1. *O Must vote against Bills 2 and 3. * L must the same way that K dose on all three bills.*N must vote the same way that O dose on all three bills. which of the following cannot be true ?
Which of the following statements is NOT true regarding bills? The legislative procedure is identical in both the Houses of Parliament. Every bill has to pass through the same stages in each House. A bill is a proposal for legislation and it becomes an act or law when duly enacted. Bills introduced in the Parliament are of 3 kinds: public bills, private bills, and government bills.
Which of the following category is NOT a right classification of the bills introduced in the Parliament? Ordinary bills, which are concerned with any matter other than financial subjects. Currency bills, which are concerned with the financial matters like taxation, public expenditure, etc. Financial bills, which are also concerned with financial matters ,also called as money bills. Constitution amendment bills, which are concerned with the amendment of the provisions of the Constitution.
Consider the following statements for deflection and null type instruments: 1. Deflection type of instruments are more accurate than null type of instruments. 2. Deflection type of instruments can be highly sensitive as compared with the null type of instruments. 3. Null type of instruments are more suitable for measurements under dynamic conditions than deflection type of instruments. Which of the above statements are not correct?