Which of the Following Statements Is NOT True

question 99

Multiple Choice

Which of the following statements is NOT true?

• A) Trade is beneficial because it allows more efficient production.
• B) Trade is beneficial because it allows consumers to buy goods at cheaper prices.
• C) Trade is beneficial because it allows all domestic industries to increase production.
• D) Trade is beneficial because it allows consumption beyond the production possibility frontier.

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Definitions:

Treasury Bill

A Treasury Bill (T-Bill) is a short-term government debt obligation backed by the Treasury Department with a maturity of one year or less.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Effective Annual Yield

The return on an investment expressed as an annual rate, taking into account the effect of compounding interest.

Selling Today

The act of disposing of an asset or security in the current market with the intention of realizing its current value.