Bonds Issued by the U

question 117

Multiple Choice

Bonds issued by the U.S. Treasury are referred to as benchmark bonds because:

• A) they are always purchased for a premium.
• B) they are highly liquid and virtually free of default risk.
• C) all bonds from national governments are labeled as benchmark bonds.
• D) all bonds from the U.S. government have the same rate of interest.

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Definitions:

Building Uses

Pertains to the designated purposes or activities for which a building is designed, occupied, or intended to be used.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the additional amount earned by employing resources in their current activity over their next-best alternative.

Total Revenue

The total amount of money received by a company from sales of its goods or services before any expenses are subtracted.

Accounting Profit

The total revenue of a firm minus its explicit costs, reflecting the financial gain calculated using standard accounting principles.