Treasury Bills and Commercial Paper Quiz

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PoliteEpiphany5615
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15 Questions

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

Rs. 25000

What are Treasury Bills also known as?

Zero Coupon Bonds

Who issues Commercial Paper?

Large credit worthy companies

How long is the maturity period for Commercial Paper?

15 days to one year

What is the primary purpose of issuing Treasury Bills?

Meet the short-term requirement of funds by the Central Government

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

False

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

False

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

True

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

True

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

False

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

True

Treasury Bills are also known as Zero Coupon Bonds.

True

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

False

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

True

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

True

Test your knowledge about Treasury Bills and Commercial Paper with this quiz. Learn about their features, issuance, and usage in the financial market.

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