What is the primary purpose of a Treasury bill?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Show Answers

Obtaining short-term financingSecuring long-term borrowingTreasury bills are not considered credit instrumentsA government-issued tax certificate

Explanation

Treasury bills are used by the government to raise funds for short durations, making them a tool for short-term borrowing. They are not designed for long-term loans, nor are they tax documents. Therefore, their main function is to provide short-term credit.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What is the primary purpose of a Treasury bill?

Explanation

More Basic of Economics MCQs