Treasury bonds are considered risk-free assets, meaning there is no risk that the investor will lose their principal i.e. investors that hold the bond until maturity are guaranteed their principal or initial investment. There is no credit risk and with lower risk, the return is also lower. Furthermore, Treasury bills and bonds are purchased by the financial institutions for fulfilling their various regulatory requirements (like SLR). For the bulk purchase, their prices rise and yields turn low. The amount of capital a bank is required to hold in support of investment in treasury bills and bonds is lower as compared to capital to be held for other instruments with very low risk.
Which interest rate is offered under the PM Vishwakarma Scheme for collateral-free credit support?
Which Russian Cosmonaut holds the record for the longest spaceflight overall?
Since which year was the construction of Fort Aguada started?
Who among the following cricketer who hitted highest six in one ODI innings?
Who was appointed as the 24th Chief of Naval Staff in May 2019?
The dress of Rajasthani 'Tara Bhant ki Odhni' is popular in -
According to the RBI Commercial Paper Directions approved that InvIT and REIT having net worth of at least Rs ___ crore are eligible to issue commercial...
Which of the following is a tidal port?
Who was the President of the Indian National Congress during the visit of the Simon Commission to India?
Which of the following institutions started the 'Team Halo' initiative in November 2020?