The Primary Difference Between U

question 66

Multiple Choice

The primary difference between U.S.Treasury bills and U.S.Treasury bonds is that the bills:

• A) do not have default risk.
• B) have more price volatility.
• C) have a shorter maturity at time of issue.
• D) offer a higher return.

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Definitions:

Federal Transfer Payments

Government payments transferred to individuals or states, often for assistance, without requiring direct services in return.

Tax Receipts

The revenue collected by the government through various forms of taxes.

Borrowing

The act of obtaining resources (usually money) from another party with the promise of repayment under defined terms, often involving interest.

Marginal Tax Rate

The rate of tax applied to the last unit of income or additional dollar earned, indicating how much of the next earned dollar will be taken in taxes.