hello Anisha! I need your advice with something, I want to make a short term investment, which instrument of the money market do you think would have the lowest risk?
According to me you should go for treasury bill then, it is issued by the government and is a form of promissory note.
Exactly. The system of interest is slightly different here, they are issued at a price which is lower than their face value, the difference between the two is called discount and is the interest receivable on the bill.
You mean the money is being borrowed by the government? What is the interest rate paid on this bill?
Thankyou so much for the advice, I agree that treasury bills will be the best form of investment for people like me who are very scared of taking risks.
It was my pleasure to help you out Garvika. Don't hesitate to ask any further question you might have!