Q.

A short-term government security paper is called -

A. Share
B. Debenture
C. Mutual fund
D. Treasury bill
Answer» D. Treasury bill
Explanation: Treasury bills are instrument of short-term borrowing by the Government of India, issued as promissory notes under discount. The interest received on them is the discount which is the difference between the price at which they are issued and their redemption value. They have assured yield and negligible risk of default.
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