Which of the is a risk-free security?
Preference share
Ordinary share
Treasury bill
Debenture
Correct answer is C
A risk-free asset is one that has a certain future return no possibility of loss. A good example of a risk-free security is the treasury bill.
A treasury bill is a short-term debt instrument, usually with a maturity period of 3 months. It is issued on behalf of the federal government by the central bank to borrow money from the masses.