An Increase in the Demand for Treasury Bills Will

question 133

Multiple Choice

An increase in the demand for Treasury bills will

• A)increase the price of Treasury bills.
• B)increase the interest rate on Treasury bills.
• C)increase the opportunity cost of holding money vs.Treasury bills.
• D)eventually cause households to hold less money.

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Definitions:

Controlling Account

A general ledger account that summarizes the total amounts listed in a subsidiary ledger.

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, asset purchases, and debt payments.

Sales Discounts

Refers to reductions from the listed price of goods or services, offered by sellers to buyers, typically as an incentive or reward.

Accounts Payable

Amounts a company owes to creditors for goods or services bought on credit.