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Treasury bonds are considered risk-free assets, meaning there is no risk that the investor will lose their principal i.e. investors that hold the bond until maturity are guaranteed their principal or initial investment. There is no credit risk and with lower risk, the return is also lower. Furthermore, Treasury bills and bonds are purchased by the financial institutions for fulfilling their various regulatory requirements (like SLR). For the bulk purchase, their prices rise and yields turn low. The amount of capital a bank is required to hold in support of investment in treasury bills and bonds is lower as compared to capital to be held for other instruments with very low risk.
The World Bank has approved a _______ loan to assist India in raising the standard of its technical education and expanding the number of jobs prospect...
Which Supreme Court ruling emphasized accessibility for people with disabilities (PwDs) as a fundamental right, highlighting the need for mandatory acce...
What is the primary purpose of the Mobile Number Revocation List (MNRL) introduced by the RBI?
Which country hosted COP29 in 2024?
What is the MSP set for raw jute for the 2025-26 marketing season?
Airbnb has inked an agreement with which state government’s Tourism Development Board to build host capacity in lesser-explored destinations & will ...
What is the primary purpose of the Unified Genomic Chip launched in Maharashtra's agriculture sector?
Identify the bank for which Rama Mohan Rao Amara has been recommended as Managing Director by FSIB.
In which country was India's first overseas Jan Aushadi Kendra inaugurated?