Question : Which of the following statement is correct?
Statement 1:Treasury Bills have assured yield and negligible risk of default due to the soundness of RBI.
Statement 2: Treasury Bills are considered negotiable instruments.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Both are true
Solution : Treasury bill means the short term instrument which the central government issues to the financial institution of the general public in order to meet its short term financial needs it's maturity period cannot be more than a year.1:Treasury Bills have assured yield and negligible risk of default due to the soundness of RBI.
Hence, option A is correct.
