Multiple choice

What are Treasury Bills?

  1. The main instruments of short-term borrowings by the Government which serve as a convenient gilt-edged security for the money market

  2. Bills issued by scheduled commercial banks to raise funds for more than 90 days

  3. Bills issued by treasuries to give short term funds to local self governments

  4. Bills prepared and presented to treasury for eventual payment
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A Correct answer
Explanation

Treasury Bills (T-Bills) are short-term debt instruments issued by the government to finance its operations. They mature in less than one year (typically 91, 182, or 364 days) and are sold at a discount to face value, serving as key money market instruments.

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