This document discusses various types of short-term securities, including treasury bills, commercial papers, marketable securities, and short-term government bonds. Treasury bills are issued by the US Department of Treasury and provide returns through discounted prices. Commercial papers are used by large companies to fund short-term obligations like payroll. Marketable securities can be easily converted to cash due to short maturities and liquid trading rates. Short-term government bonds are issued domestically to fund government projects and carry political, interest rate, and inflation risks for investors. In conclusion, short-term securities provide liquidity in the market through maturities of less than one year.

1. DBG GOVERNMENT COLLEGE PANIPAT
ASSIGNMENT NO.1
FINANCIAL INSITUTION AND BANKING
SUBMITTED TO:
MS. MANISHA MAM
SUBMITTED BY : RAHUL DHAMIJA
ROLL. NO :2205510010
CLASS : M.COM {F}

2. FINANCIAL SYSTEM

3. SHORT TERM SECURITIES
Treasury Bills
Treasury bills are commonly referred to as “T-bills." These are securities issued by the
United States Department of Treasury. When issued to companies, companies
essentially lend the government money. T-bills are provided in denominations of
$1,000 to $5 million. They do not pay interest but are provided at a discounted price.
The yield of T-bills is the difference between the price of purchase and the value of
redemption.

4. Commercial Papers
Commercial papers are used by big companies to receive funds to answer short-term
debt obligations like a corporations’ payroll. They are supported by issuing banks or
companies that promise to fulfill and pay the face amount on the designated maturity
date provided on the note.
Marketable Securities
Marketable securities are financial assets and instruments that can easily be converted
into cash and are therefore very liquid. Marketable securities are liquid because
maturities tend to happen within one year or less and the rates at which these may be
traded have minimal effect on prices.

5. Short-Term Government Bonds
Short-term government bonds are provided by governments to fund government
projects. These are issued using the country’s domestic currency. Investors take a look
at political risks, interest rate risks, and inflation when investing in government bonds.
CONCLUSION : SHORT TERM SECURITY PROVIDES LIQUIDITY IN THE MARKET AND
HENCE IT IS ISSUED FOR LESS THAN ONE YEAR.