Which One of the Following Statements Is Correct Concerning a Treasury

question 85

Multiple Choice

Which one of the following statements is correct concerning a Treasury bill?

• A)The asked discount indicates the amount a bond dealer is willing to pay to purchase a Treasury bill.
• B)The asked yield on a Treasury bill is a bond equivalent yield.
• C)The asked discount for a Treasury bill is greater than the bid discount.
• D)The asked yield for a Treasury bill is computed based on a 360-day year.
• E)The bid price on a Treasury bill is computed based on a 365-, or 366-day year.

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Definitions:

Inferior Good

A type of good whose demand decreases when consumer income rises, inverse to a normal good.

Indifference Curve

A graphical representation that shows different combinations of two goods among which a consumer is indifferent.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of goods or services.

Indifference Curves

Graphical representations in microeconomics to illustrate a consumer's preference among different bundles of goods, where each point on the curve represents a combination of goods that provides the same level of utility to the consumer.