We Assign a Very Low Probability of Default to the U.S.Treasury

question 18

True/False

We assign a very low probability of default to the U.S.Treasury and thus assume that all Treasury bills will be paid in full at maturity and thus have a zero default premium.

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Definitions:

Fair Labor Standards Act

The Fair Labor Standards Act is a United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting employees in the private sector and in federal, state, and local governments.

Double-Pay

A situation where an individual receives twice the amount of payment that is due for a particular period or task, often due to an error or as a special compensation.

Workers Compensation System

The structured process through which employees can receive benefits and compensation for work-related injuries or illnesses.

Accident

An unexpected and unplanned event, often causing damage or injury.