Q. At present, which of the following treasury bill/s is/are issued by the government?
1.14-day treasury bills
2.91-day treasury bills
3.182-day treasury bills
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: C

Explanation: Treasury Bills (TBs) is an instrument of the money market though present since Independence got organized only in 1986.

They are used by the Central Government to fulfill its short-term liquidity requirement up-to the period of 364 days. There developed five types of the TBs in due course of time:

  • 14-day (Intermediate TBs)
  • 14-day (Auctionable TBs)
  • 91-day TBs
  • 182-day TBs
  • 364-day TBs

Out of the above five variants of the TBs, at present only the 91-day TBs, 182-day TBs and the 364-day TBs are issued by the government. The other two variants were discontinued in 2001.

Source: Ramesh Singh