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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 of the following organization gets DSCI AISS Award for ‘Best Security Practices in Government Sector’?
Archaeological Survey of India (ASI) of Ministry of Culture, organised two-day international conference ‘Devayatanam – An odyssey of Indian ...
How many MiG-29 fighter jets is Poland planning to give to Ukraine?
Which part of the Indian Constitution pertains to elections?
Where was India's first Skill India Center inaugurated?
__________ defeated Japan to lift the trophy in the 2021 Hero Asian Champions trophy hockey in Dhaka.
What is the theme of World Wetlands Day 2024?
Who has been named as the High Performance Director (HPD) for Indian Boxing ?
The issue price of the Sovereign Gold Bonds 2022-23 (Series IV) during the subscription period shall be ______ per gram.
Which state was awarded the geographical indication (GI) tag in January 2024 for the unique 'Kai Chutney,' made from red weaver ants?