Treasury Bills and Commercial Paper Quiz
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Questions and Answers

What is the minimum amount for which Treasury Bills are available?

  • Rs. 10000
  • Rs. 25000 (correct)
  • Rs. 50000
  • Rs. 20000

    • What are Treasury Bills also known as?

  • Convertible Bonds
  • Municipal Bonds
  • Zero Coupon Bonds (correct)
  • Corporate Bonds

    • Who issues Commercial Paper?

  • Small businesses
  • Large credit worthy companies (correct)
  • Banks only
  • Government agencies

    • How long is the maturity period for Commercial Paper?

    <p>15 days to one year</p> Signup and view all the answers

    What is the primary purpose of issuing Treasury Bills?

    <p>Meet the short-term requirement of funds by the Central Government</p> Signup and view all the answers

    Treasury Bills are issued by the Central Government to meet its long-term requirement of funds.

    <p>False</p> Signup and view all the answers

    Commercial Paper is a long-term secured promissory note issued by small credit worthy companies.

    <p>False</p> Signup and view all the answers

    Treasury Bills are available for a minimum amount of Rs. 25000.

    <p>True</p> Signup and view all the answers

    Commercial Paper has a fixed maturity period of 15 days to one year.

    <p>True</p> Signup and view all the answers

    Treasury Bills are issued at a price higher than their face value.

    <p>False</p> Signup and view all the answers

    Treasury Bills are issued by the RBI on behalf of the Central Government to meet its short-term requirement of funds.

    <p>True</p> Signup and view all the answers

    Treasury Bills are also known as Zero Coupon Bonds.

    <p>True</p> Signup and view all the answers

    Commercial Paper is a long-term secured promissory note issued by large credit worthy companies.

    <p>False</p> Signup and view all the answers

    Commercial Paper has a fixed maturity period of 15 days to one year.

    <p>True</p> Signup and view all the answers

    Treasury Bills are available for a minimum amount of Rs. 25000 and in multiples thereof.

    <p>True</p> Signup and view all the answers

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