Which of the following explains the meaning of Treasury Bills?
Which of the following explains the meaning of Treasury Bills?
Solution
✅ Correct Option: 2
Treasury bills are short-term money market instruments issued by the RBI on behalf of the Government of India, sold at a discount and redeemed at par, so they are also known as zero coupon bonds. They are not issued by SBI, are short-term (not long-term), and the minimum amount is Rs. 25,000. Hence option 2.
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