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Management · Q414

International Finance and Treasury

Graduate and Post Graduate · Management · question 414

Q414

Treasury bills have high liquidity because of

A.
extensive secondary markets
Answer
B.
extensive primary markets
C.
premium money markets
D.
discounted money markets

Answer: Option A

Solution

Answer: Option A
Solution:
Treasury bills have high liquidity because of extensive secondary markets. A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.