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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.
Longevity is proxy for ---- in the Human Development Index?
___________ refers to the degree of correlation of the same variables between two successive time intervals
Which new feature was introduced in Japan’s banknotes to deter counterfeiters?
Which of the following is a property of a normal distribution?
Oligopolies can end up looking like competitive markets if the number of firms is
If the exchange rate of some economy depreciates vis−a−vis US $ and if the Marshal Lerner condition is satisfied, then the current account deficit o...
What is the target Fiscal Deficit as a % of GDP for FY23 in the Union Budget 2022-23?
Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys its goods in large quantities and, therefore, at chea...
The correlation coefficient between X and -X is:
Within a country, the domestic price of a product will equal the world price if