Treasury Bills

question 39

Multiple Choice

Treasury bills

• A) are sold at a discount from the maturity value.
• B) pay interest each month.
• C) do not have a secondary market.
• D) ownership is indicated by the certificate received by the purchaser.

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Definitions:

Market Power

The ability of a firm or group of firms to manipulate prices or output in a particular market, often due to lack of significant competition.

Elasticity Of Demand

A measure of how responsive the quantity demanded of a good or service is to a change in its price.

Mark-Up

The amount added to the cost price of goods to cover overhead and profit; it is the difference between the cost of a good or service and its selling price.

Market Power

The ability of a company or entity to influence the price and output levels in a market.