Q425
Obligations that are issued by US governments and are obligated for short term are classified as
A.
bankers treasury
B.
treasury bills
AnswerC.
treasury funds
D.
secured treasury
Answer: Option B
Solution
Answer: Option B
Solution:
Obligations that are issued by US governments and are obligated for short term are classified as treasury bills. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.