Treasury bills are a form of government loans issued by which institution?

Treasury bills are a form of government loans issued by which institution?

• A. Ministry of Finance
• B. Central Bank
• C. Public Securities Office
• D. Treasury Department

Answer: (B)

Treasury bills are short‑term government IOUs used to raise funds. The central bank is the institution that issues and manages these government securities, handling the auctions, settlements, and liquidity in the market on behalf of the government. While the treasury or ministry of finance sets policy and authorizes debt, the central bank typically serves as the issuer and market operator for these short‑term bills. The other options refer to policy or administrative bodies rather than the entity that conducts the actual issuance in many standard explanations.

Treasury bills are short‑term government IOUs used to raise funds. The central bank is the institution that issues and manages these government securities, handling the auctions, settlements, and liquidity in the market on behalf of the government. While the treasury or ministry of finance sets policy and authorizes debt, the central bank typically serves as the issuer and market operator for these short‑term bills. The other options refer to policy or administrative bodies rather than the entity that conducts the actual issuance in many standard explanations.