When Current Savings of an Economic Unit Exceed Its Direct

question 41

Multiple Choice

When current savings of an economic unit exceed its direct investment in real assets, this is referred to as:

• A) savings surplus
• B) savings deficit
• C) savings neutral
• D) savings inflation

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Definitions:

T-Bill Quote

The price or interest rate expressed for a Treasury bill; often quoted in terms of discount from face value.

Face Value

The nominal or dollar value printed on a bond or stock certificate; for bonds, it's the amount repaid to the holder at maturity, and for stocks, it is the original cost of the stock.

Bid

An offer made by an investor, trader, or dealer to buy a security, commodity, or currency.

Treasury Bills

Treasury Bills (T-Bills) are short-term U.S. government debt obligations with a maturity of one year or less, considered a safe investment due to government backing.