Treasury bills are issued on

A. treasury basis

B. corporate basis

C. premium basis

D. discount basis

Answer: Option D

Solution(By Examveda Team)

Treasury bills are issued on discount basis. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.