What is a Treasury Bill? | Class 12 Business Studies Chapter Financial Markets, Financial Markets NCERT Solutions
Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter Financial Markets. This page offers a step-by-step solution to the specific question from Exercise 1, Question 1: .
With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.
Question 1:
What is a Treasury Bill?
Answer:
Treasury Bill is an instrument of short-term debt, issued by the RBI on behalf of central Government to meet short-term requirement of funds.
They are issued in the form of a promissory note, having maturity period of less than one year.
They are highly liquid and have assured returns and with negligible risk of default.
They are available for a minimum amount of ₹ 25,000, and in multiples thereof.
They are also known as ‘Zero coupon bonds’ as they do not pay any interest, but since the issue price is less than the redemption value, this difference is the interest receivable on them.
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Financial Markets.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.
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Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 1: What is a Treasury Bill?....
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