Which of the Following Securities Will Likely Have the Highest

question 73

Multiple Choice

Which of the following securities will likely have the highest liquidity premium?

• A) U.S. Treasury Bond maturing in 2027
• B) Bbb-rated corporate bond maturing in 2020 actively traded on a major exchange
• C) Aaa-rated corporate bond maturing in 2015 not actively traded
• D) U.S. Treasury Bill

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Definitions:

U.S. Dollars

The official currency of the United States, used as a standard monetary unit for global transactions.

Trade Deficit

A situation where a country's imports exceed its exports, leading to more money leaving the country for buying foreign goods than is entering from selling domestic goods.

Current Account Surplus

A scenario in which the total goods, services, and transfers a country exports are greater than what it imports.