Which of the Following Statements Is FALSE

question 14

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:

Economic Substance

A principle that transactions should reflect their true economic purpose, not just their legal form.

Faithful Representation

Faithful Representation refers to financial information that accurately reflects an entity's financial performance, position, and changes in financial position.

Plant And Equipment

Long-term tangible assets used in the operations of a business, not intended for resale.

Useful Lives

The expected period of time during which an asset is expected to be usable for the purpose it was acquired.