Treasury bill is used for_________________?
Correct answer: A. Getting short term loans
- A. Getting short term loans
- B. Getting long term loans
- C. Treasury bill in not credit instrument
- D. Treasury bill is a govt. tax bill
Explanation
A treasury bill is a short-term government debt instrument, normally issued to meet temporary financing needs and manage cash flow. Long-term government borrowing is generally conducted through bonds or other long-term securities.
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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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