Which of the following is / are salient features of Treasury Bills?
[A]They have zero default risk
[B]They are highly liquid
[C]No tax is deducted at source
[D]All of above
All of above
The benefits of investment in treasury bills include: No tax deducted at source Zero default risk being sovereign paper Highly liquid money market instrument Better returns especially in the short term Transparency Simplified settlement High degree of tradability and active secondary market facilitate meeting unplanned fund requirements.