Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?
Correct answer: B. Treasury bill
- A. Bond
- B. Treasury bill
- C. Term bound
- D. Securities
Explanation
A treasury bill is a short-term government promissory instrument issued at or near a discount and redeemed at maturity. Bonds and other securities generally cover longer-term or broader forms of government borrowing.
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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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