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- Subject
- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
What is the name of the government borrowing method where a promissory note is issued, promising repayment to the holder after a specified number of days?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
The government raises funds by issuing promissory notes called Treasury bills, which are short-term instruments promising repayment to the bearer after a set period. Unlike bonds or debentures, Treasury bills do not pay periodic interest but are issued at a discount and redeemed at face value.
More Basic of Economics MCQs
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- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?