Which of the Following Is Not True of Treasury Bonds

question 153

Multiple Choice

Which of the following is not true of Treasury bonds?

• A) long-lived
• B) noncallable
• C) stated interest rate
• D) pay higher rates of interest than Treasury bills

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Single Price Monopolist

A monopolist who charges all consumers the same price for its product, irrespective of the quantity purchased.

Profit-Maximizing Quantity

The level of output at which a company achieves the highest possible profit, determined by analyzing costs and revenues.