A Speculator Who Expects Interest Rates to Fall Enters a Contract

question 30

True/False

A speculator who expects interest rates to fall enters a contract to buy (i.e., accept delivery) of Treasury bills.​

---

Definitions:

Proprietorship

A business structure owned by a single individual who is responsible for its liabilities and entitled to its profits.

Taxed

The imposition of a financial charge or other levy upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Double Taxation

A taxation principle referring to income taxes that are paid twice on the same source of income, common in C-type corporations where income is taxed at both the corporate and shareholder levels.

Corporate

Relating to a large company or group of companies authorized to act as a single entity.