Pure Discount Bonds, Which Are Created by Separating the Interest

question 92

Multiple Choice

Pure discount bonds, which are created by separating the interest and principal payments from U.S. Treasury bonds, are called U.S. Treasury:

• A)notes.
• B)bills.
• C)STRIPS.
• D)SWAPS.
• E)tax-exempts.

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Definitions:

Resources Scarcity

The economic condition of limited natural resources available to meet the unlimited wants and needs of people.

Downward Slope

A graphical representation indicating a decrease or decline in a variable as another variable increases, often seen in demand curves.

Production Possibility Frontier

An illustration representing the highest potential outputs for multiple goods using specific resources.

Economy Grows

The increase in the production of goods and services over a period, indicating economic health.