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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.
'The Banker' magazine is published by which of the following?
Which of the following statements correctly describes the new visa-free policy introduced by Belarus for 35 European countries?
Which country topped the Global Peace Index 2025?
Consider the following statements about the NPCI's global initiatives:
I. NPCI's collaboration with Namibia aims to replicate the UPI system.
...Consider the following statements regarding the penalties imposed by RBI on certain banks-
I.The Reserve Bank has imposed a Rs 50 lakh penalty on...
Recently Indian government has extended policy to allow imports of lentils and vegetable oils such as palm oil, soy oil and sunflower oil at lower taxes...
Which bank announced the introduction of its all-new Privy League programme, an exclusive premium banking programme with unique lifestyle benefits and...
UPI volume cap deadline extended till _______.
What is the proposed increase in the minimum amount for offering non-callable term deposits (TDs) based on the recent announcement by RBI?
Which Viceroy was responsible for the Partition of Bengal in 1905?