There Is Customarily a Small Spread Between Bid and Asked

question 57

Multiple Choice

There is customarily a small spread between bid and asked prices of Treasury notes and bonds, because:

• A)they are traded at a discount from par.
• B)there is competition from other markets.
• C)the market for Treasury issues is liquid.
• D)there are not many government securities dealers.

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Definitions:

Merger Clause

A provision in a contract stating that the written agreement supersedes all prior or oral agreements, focusing on the primacy of the current document.

Parol Evidence Rule

A legal principle that prevents parties in a written contract dispute from introducing oral or extrinsic evidence to modify the original agreement.

Parol Evidence Rule

A rule in contract law that prevents parties from presenting evidence of prior or contemporaneous agreements that would contradict the terms of a written contract.

Ambiguous Terms

Words or phrases in a contract or agreement that are unclear and open to more than one interpretation.