Which of the Following Statements About U

question 46

Multiple Choice

Which of the following statements about U.S. Treasury bills (T-bills) is true?

• A) T-bills can be sold at any time with no interest penalty.
• B) T-bills are issued with 6-month and 12-month maturities.
• C) T-bills earn interest at a fixed rate for 30 years.
• D) T-bills pay interest by direct payment.
• E) T-bills are sold at face value.

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Definitions:

Cash Flows

The total amount of money being transferred in and out of a business, especially as affecting liquidity.

Equipment

Tangible, long-term assets used in the operation of a business, not intended for resale, such as machinery, office furniture, and computers.

Hedging Reserve

A financial reserve established to offset potential losses or gains due to future price or currency fluctuations, often related to commodity or foreign exchange hedging.

Capital Reserve

Funds set aside from a company's profits for future investments or to cover anticipated liabilities or losses.