Q254
Treasury bills are issued on
A.
treasury basis
B.
corporate basis
C.
premium basis
D.
discount basis
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Treasury bills are issued on discount basis. 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.