Which ONE of the Following Statements Is True

question 82

Multiple Choice

Which ONE of the following statements is true?

• A) The lower the transaction costs are, the greater a security's marketability.
• B) The interest rate, or yield, on a security varies inversely with its degree of marketability.
• C) U.S. Treasury bills have the largest and most active secondary market and are considered to be the most marketable of all securities.
• D) All of the above are true.

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Definitions:

Reward System

A structured scheme for the distribution of benefits or incentives to employees or participants, based on their performance and achievements.

Profit Sharing

A company policy of distributing a portion of its profits to its employees.

Gain Sharing

A type of incentive plan where savings from increased productivity are shared between employees and the company.

Free-riding Problems

Situations where individuals or entities benefit from resources or services without paying for them, typically leading to underprovision or overuse.