Asked by Tyrik Lawson on Jul 15, 2024
Verified
Which one of the following statements is correct?
A) Short-term securities are more interest rate sensitive than long-term securities.
B) The rate of return earned on short-term securities tends to exceed that earned on long-term securities.
C) Treasury bills are well suited for short-term investments.
D) The income earned on Treasury bills is exempt from all taxation.
E) Short-term investments tend to have high levels of default risk.
Interest Rate Sensitive
Pertaining to assets or investments that are affected by changes in interest rates.
Short-term Securities
Financial instruments that are typically debt securities with maturities of one year or less, used for short-term financing needs.
Treasury Bills
Short-term government securities with maturities of one year or less, sold at a discount and redeemed at face value at maturity.
- Learn the tactics and devices for elevating cash levels and adeptly administering float.
Verified Answer
Learning Objectives
- Learn the tactics and devices for elevating cash levels and adeptly administering float.
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