Treasury Bills

question 89

Multiple Choice

Treasury bills:

• A) promise a set-rate interest payment every six months.
• B) are protected against inflation.
• C) promise a set amount of money to be paid on a fixed date.
• D) mature in 30 years.

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Definitions:

Market Equilibrium

A situation in which market supply equals market demand, and prices stabilize.

Demand Price

The highest price consumers are willing to pay for a good or service at a given quantity, reflecting the value placed on the item by the market.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Imposes a Quota

A restriction, set by a government, on the maximum number of units of a particular product that can be imported or exported within a given period.