If the Treasury Uses a Relatively Large Proportion of ____

question 20

Multiple Choice

If the Treasury uses a relatively large proportion of ____ debt to finance a budget deficit, this would place ____ pressure on long-term yields.

• A) short-term; downward
• B) long-term; downward
• C) short-term; upward
• D) long-term; upward

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified future date.

Wilshire 5000

A metric assessing the performance of all equity securities based in the U.S. for which price information is easily accessible.

DJIA

Stands for Dow Jones Industrial Average, which is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.