The Bid Price of a Treasury Bill Is ________

question 21

Multiple Choice

The bid price of a Treasury bill is ________.

• A) the price at which the dealer in Treasury bills is willing to sell the bill
• B) the price at which the dealer in Treasury bills is willing to buy the bill
• C) greater than the ask price of the Treasury bill expressed in dollar terms
• D) the price at which the investor can buy the Treasury bill

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Definitions:

Sum of Money

An amount of money expressed as a total figure, without specifying denominations or breakdown.

Increased

A term that signifies a rise in quantity or quality, often used in financial and statistical contexts.

Reduced

A term often used to describe a decrease or diminution in size, quantity, or intensity.

35%

A percentage representing thirty-five parts out of a hundred.