Jonathan Wynn Knows That If He Wanted to Purchase a Treasury

question 70

Multiple Choice

Jonathan Wynn knows that if he wanted to purchase a Treasury Bill,the minimum amount he would spend would be close to $10,000.He also knows that he could deposit $1,000 in a money market deposit account at a bank and earn about the same rate of interest.Jonathan does not have $10,000 to invest in a Treasury Bill.If Jonathan puts his money in the bank,which service that a bank can provide,is he taking advantage of?

• A)Risky arbitrage services
• B)Liquidity services
• C)Delegated monitoring services
• D)Divisibility of money services
• E)Credit services

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Definitions:

Organized

Characterized by systematic planning and coordinated effort, often referring to groups, activities, or structures.

Recreation

Activities done for enjoyment, leisure, or pleasure when one is not working.

Necessities

Basic needs or essential items required for living and maintaining a decent quality of life, such as food, water, shelter, and clothing.

Norms

Rules or guidelines regarding what kinds of behavior are acceptable and appropriate within a particular culture; these typically emanate from the group’s values.