Start learning 50% faster. Sign in now
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.
Who coined the term ‘Black Hole’?
Which one of the following constituents of the atmosphere causes greatest changes in climate and weather?
Where is the Sivalik hill located?
Tidel Park in Chennai was formed by TIDCO and
Select the option which is related to the third word in the same way as the second word is related to the first word.
Doctor : Hospital :: Arti...
Jaya Samhita is the original name of :
Where is Bilaspur located in India?
As per the treaty of Amritsar 1809, what would be the boundary of Maharaja Ranjit Singh’s Empire?
Which Emperor adopted the Zabat System of measurement of land?
Finance commission is described in which article?