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The difference between the issue price of a treasury bill and its redemption value is called:
ABrokerage
BDiscount
CDividend
DPremium
Answer & Solution
Correct answer: B. Discount
1. The bill is issued below par.
2. It is repaid at par.
3. That gap is the discount.
_Source: NCERT Class 12 Business Studies Part II, Chapter 10, Financial Markets._
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