alleryTreasury bills are best described as securities that are:
AFloat coupon
BZero coupon
CZonal coupon
DFixed coupon
Answer & Solution
Correct answer: B. Zero coupon
1. They are zero coupon securities.
2. The gain comes from a discount at issue.
3. They pay no interest as such.
_Source: RBI, FAQs on the Government Securities Market in India_
Keep practising Monetary Policy
Browse all Monetary Policy questions for IBPS Clerk, or explore more Banking Awareness topics.
Related questions
Match each monetary stance with its macroeconomic condition:Match each Monetary Policy Committee (MPC) parameter with its statutory mandate:Match each standing liquidity facility of RBI with its design purpose:Match each quantitative monetary policy tool with its operational mechanism:Pick the right answer, quicklySpot the one that does not fitOrder an open market saleFill the gaps in the liquidity toolkit