Question
With reference to treasury bills consider the following statements: 1. Treasury bills are used by the central government to fulfil its long-term liquidity. 2. Banks cannot keep treasury bills as SLR-approved security. Which of the statements given above is/are incorrect?
Solution
Treasury bills are Money market debt instruments. They are used by the Central Government to fulfil its short-term liquidity requirement for up to a period of 364 days. The RBI specifies the SLR status of securities issued by the Government of India and the State Governments: Dated securities of the Government of India, Treasury Bills of the Government of India, Dated securities of the Government of India, State Development Loans (SDLs) issued from time to time under their market borrowing programme.
More Previous Year Paper Questions
- Recently in which state of India the first Drone school was opened?
- Which of the following is the correct match between column-A and column-B?
- By how many basis points was the interest rate applicable to the Sukanya Samriddhi scheme increased?
- In which classical dance forms the performance includes a Sutradhara or Nattuvanar who is the conductor of the entire performance?
- Which city will receive an investment of Rs 5,000 crore from Bajaj Finserv, according to the Memorandum of Understanding (MoU) signed with the Maharashtra ...
- India became first country to launch Genome Edited Rice variety(ies) ______ developed by ICAR institutions in May 2025.
- Which regulatory body set a 30% intraday risk cap for custodian banks involved in T+1 settlement?
- Which among the following is an agricultural festival of Arunachal Pradesh and celebrated by the Galo tribe?
- With which company has Tata Motors signed a Memorandum of Understanding (MoU) to explore Joint Development projects?
- By which country was the C Dome Air Defence System manufactured?
