Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A) In the case of a Treasury note or Treasury bond offering, the stop-out yield determines the coupon of the bond and then all bidders pay the discounted value for the bond or note.
• B) All competitive bidders submit sealed bids in terms of yields and the amount of bonds they are willing to purchase.
• C) In the past, the Treasury has issued bonds with maturities of 30 years (often called long bonds) and 20 years.
• D) Noncompetitive bidders (usually individuals) just submit the amount of bonds they wish to purchase and are guaranteed to have their orders filled at the auction.

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Definitions:

Sales Commissions

A portion of the revenue earned from selling a product or service that is paid to the sales representative or agent responsible for the transaction.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.

Variable Costs

are costs that vary in proportion to the level of production or sales volume, such as raw materials and direct labor costs.

Output

Output usually refers to the total amount of goods and services produced by a company, industry, or economy within a specific period.