EXCHEQUER BILL Meaning and
Definition
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An exchequer bill refers to a debt security issued by the British government to finance its expenditures or manage short-term cash deficits. This type of bill functions as a short-term borrowing instrument that serves as evidence of indebtedness or a promissory note. The term "exchequer" specifically refers to the British Treasury or finance department responsible for managing the government's finances.
The purpose of issuing exchequer bills is to raise funds quickly for the government, enabling it to meet its financial obligations or bridge any temporary cash shortfalls. These bills are typically issued for a fixed period, typically three, six, or twelve months, and bear interest. The interest rate associated with exchequer bills is generally set by the government at the time of issuance.
Exchequer bills are considered relatively safe investments due to their association with the government and the high creditworthiness of the British Treasury. They are often held by individuals, financial institutions, or funds looking for a secure short-term investment option. Additionally, these bills are tradable in the secondary market, providing the opportunity for investors to buy or sell prior to their maturity.
Overall, exchequer bills play a crucial role in the British government's financial operations. They provide a means of managing short-term funding needs and contribute to the stability and liquidity of the financial system.
Common Misspellings for EXCHEQUER BILL
- wxchequer bill
- sxchequer bill
- dxchequer bill
- rxchequer bill
- 4xchequer bill
- 3xchequer bill
- ezchequer bill
- ecchequer bill
- edchequer bill
- eschequer bill
- exxhequer bill
- exvhequer bill
- exfhequer bill
- exdhequer bill
- excgequer bill
- excbequer bill
- excnequer bill
- excjequer bill
- excuequer bill
- excyequer bill
Etymology of EXCHEQUER BILL
The term "exchequer bill" derives from the combination of two words: "exchequer" and "bill".
1. Exchequer: The term "exchequer" originates from the Latin word "scaccarium" meaning "chessboard" or "checkerboard". In medieval England, the exchequer was a table covered with a checkered cloth that served as the central accounting department of the government. This department was responsible for collecting and managing the royal revenues.
2. Bill: The word "bill" in this context refers to a formal or written document detailing a financial transaction or obligation.
When these two words are combined, "exchequer bill" refers to a specific type of financial instrument or security issued by the exchequer department in England. These bills were often used to borrow money from the public to meet the short-term financial needs of the government.
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