Question : ___________ is a financial instrument issued by the government to borrow money from the public.
Option 1: Treasury bill
Option 2: Bond
Option 3: Debenture
Option 4: Share
Correct Answer: Treasury bill
Solution : The correct answer is (a) Treasury bill.
A Treasury bill is a financial instrument issued by the government to borrow money from the public and raise short-term funds. It is a debt instrument with a maturity period typically ranging from a few days to one year. Treasury bills are considered to be safe and low-risk investments as they are backed by the government. They are typically issued at a discount to their face value and do not pay periodic interest. Instead, the investor earns the difference between the discounted price and the face value when the Treasury bill matures.
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