What is a Treasury Bill? | Class 12 Business Studies Chapter Financial Markets, Financial Markets NCERT Solutions

Q1.

What is a Treasury Bill?

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.
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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.
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Important Questions & Answers

Why is this answer important for exams?

This question is important because it tests key concepts from the NCERT syllabus and is frequently asked in CBSE exams.

Which NCERT concept is used in this question?

This question is based on core NCERT concepts explained in the chapter and should be revised thoroughly before exams.

What is the correct answer to: What is a Treasury Bill??

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...

How do you solve What is a Treasury Bill? step by step?

Step-by-step explanation:
• 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

What common mistakes should be avoided in this question?

Students often lose marks by skipping steps, writing incomplete explanations, or misunderstanding keywords used in the question.

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