After a Treasury Security Is Sold for the First Time

question 104

Multiple Choice

After a treasury security is sold for the first time,

• A) it can no longer be sold.
• B) it must be sold to someone in a secondary market before it hits its maturity date.
• C) it loses its initial value.
• D) anyone can buy it in the large and active secondary market for U.S.Treasury securities.
• E) only large financial firms can buy it through auctions.

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Definitions:

Principle of Ratification

The acceptance and confirmation by a principal of an act performed on their behalf by another, who didn't have the authority to act in the first place.

Injustice

A situation or action that violates the principles of fairness, ethics, or rights, leading to perceived or actual harm.

Sole Proprietorships

A business structure where a single individual owns and operates the business, enjoying complete control but also bearing unlimited personal liability for its debts.

Regulatory Requirements

Legal obligations that entities must follow, often established by government agencies to regulate industry standards and protect public welfare.