Which Statement Is Correct

question 83

Multiple Choice

Which statement is correct?

• A)Commercial paper is highly marketable.
• B)All T-bills are issued with 90-day maturities.
• C)A certificate of deposit is a short-term loan to the government.
• D)Any CD with a face amount of $10,000 or more is classified as a jumbo CD.
• E)Money market preferred securities have less price volatility than ordinary preferred.

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Definitions:

Industry

A collection of businesses and companies that produce similar goods or offer similar services within an economic sector.

Invisible Hand

A metaphor coined by Adam Smith to describe how individuals pursuing their self-interest unwittingly contribute to the economic prosperity of society.

Market System

An economic approach wherein the processes of investment, manufacturing, and goods distribution are directed by supply-demand correlation, with a system that freely sets the prices of goods and services.

Prices

The amount of money required to purchase goods or services, indicating the value that consumers are willing to pay and sellers are willing to accept.