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Which of the following statements is CORRECT?
Treasury Bills
Short-term government securities with maturities of one year or less, sold at a discount from their face value.
Market Rate
The prevailing interest rate available in the marketplace for loans or investments, often used as a reference for setting the rates on loans.
Government Securities
Financial instruments issued by the government to finance its expenditures, offering a return in the form of interest payments to investors.
Bank Reserves
Bank reserves are the amount of cash that banks must hold either in their vaults or on deposit with a central bank, used to back deposits and ensure liquidity.
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