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Consider the following statements:
1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offer are issued at a discount from the par value.
​Q. Which of the statements given above is/are correct?
  • a)
    1 and 2 only
  • b)
    3 only
  • c)
    2 and 3 only
  • d)
    1,2and 3
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements:1. The Reserve Bank of India manages...
The Reserve Bank of India manages public debt and issues Indian currency denominated loans on behalf of the central and the state governments under the powers derived from the Reserve Bank of India Act. The RBI is the debt manager for both the Central Government and the State Governments. RBI manages the debt of state governments on the basis of separate agreements. Hence, statement 1 is not correct.
Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. They are issued at a discount and redeemed at the face value at maturity. For example, a 91 day Treasury bill of Rs 100/- (face value) may be issued at say Rs 98.20, that is, at a discount of say, Rs 1.80 and would be redeemed at the face value of Rs 100/-. The return to the investors is the difference between the maturity value or the face value (that is Rs 100). Hence, statement 2 and 3 are also correct.
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Most Upvoted Answer
Consider the following statements:1. The Reserve Bank of India manages...
Explanation:

- Statement 1: The Reserve Bank of India (RBI) manages and services both Government of India Securities and State Government Securities. Hence, this statement is incorrect.
- Statement 2: Treasury bills are issued by both the Government of India and State Governments. Hence, this statement is incorrect.
- Statement 3: Treasury bills are issued at a discount from the par value, which means that they are sold for less than their face value and the difference between the face value and the sale price is the interest earned by the investor. Hence, this statement is correct.

Therefore, the correct answer is option C - 2 and 3 only.
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Consider the following statements:1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.3. Treasury bills offer are issued at a discount from the par value.Q.Which of the statements given above is/are correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1,2and 3Correct answer is option 'C'. Can you explain this answer?
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