If You Buy a $10,000 Par Value T-Bill with a 180-Day

question 8

Multiple Choice

If you buy a $10,000 par value T-bill with a 180-day maturity date for $9,750,what will be your return?

• A)2)5%
• B)3)06%
• C)4)5%
• D)5)2%

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Definitions:

Equilibrium Price

The price at which the supply of an item equals the demand for that item within a market, resulting in economic equilibrium.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Price Floor

A government- or authority-set minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.

Equilibrium Price

A price level where the demand for a product matches the supply, ensuring that every buyer finds a seller and vice versa, leading to market stability.