The Bid Price of a T-Bill in the Secondary Market

question 23

Multiple Choice

The bid price of a T-bill in the secondary market is

• A)the price at which the dealer in T-bills is willing to sell the bill.
• B)the price at which the dealer in T-bills is willing to buy the bill.
• C)greater than the asked price of the T-bill.
• D)the price at which the investor can buy the T-bill.

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Definitions:

Cognitive Dissonance

A psychological phenomenon that occurs when an individual holds two or more contradictory beliefs, ideas, or values at the same time, leading to psychological stress.

Behavior

is the range of actions and mannerisms made by individuals, organisms, systems, or artificial entities in conjunction with themselves or their environment.

Attitudes

A consistent manner of thinking or feeling towards something that usually influences an individual's actions.

Cognitive Dissonance

The psychological discomfort experienced when holding contradictory beliefs, values, or attitudes, often leading to an alteration in one of them to reduce the dissonance.