Knowee
Questions
Features
Study Tools

Multiple Choice QuestionShort-term debt obligations sold by the U.S. government to raise money are referred to as ______.Multiple choice question.T-billscommercial paperCDsbonds

Question

Multiple Choice QuestionShort-term debt obligations sold by the U.S. government to raise money are referred to as ______.Multiple choice question.T-billscommercial paperCDsbonds

🧐 Not the exact question you are looking for?Go ask a question

Solution

The correct answer is "T-bills".

Step by Step Explanation:

  1. The question is asking about short-term debt obligations sold by the U.S. government to raise money.

  2. T-bills, or Treasury bills, are short-term debt obligations backed by the U.S. government with a maturity of less than one year, sold in denominations of 1,000uptoamaximumpurchaseof1,000 up to a maximum purchase of 5 million.

  3. Commercial paper is a short-term unsecured promissory note issued by corporations and foreign governments, not the U.S. government.

  4. CDs, or Certificates of Deposit, are issued by banks, not the U.S. government.

  5. Bonds are typically long-term debt securities, not short-term.

So, the correct answer to the question is T-bills.

This problem has been solved

Similar Questions

Multiple Choice QuestionAn agreement by which a financial institution promises to lend a business a predetermined sum on demand is called ______.Multiple choice question.a line of credita trade creditcollateralequity financing

Multiple Choice QuestionA written promise from one company to another to pay a specific amount of money is the definition of ______.Multiple choice question.marketable securitiesTreasury billscommercial papercommercial certificates of deposit

Multiple Choice QuestionOn the balance sheet, credit card bills, medical bills, car loans, and mortgages are all examples of Blank______.Multiple choice question.liabilitiesassetsequitiesobligationsrequirements

Of the three major activities of a firm, cash raised from the issuance of new debt is known as Blank______.Multiple choice question.revenueoperationsinvestmentsfinancing

Multiple Choice QuestionBusinesses borrow loanable funds primarily to increase their stock of Blank______ goods.Multiple choice question.loanablecapitalintangiblepublic

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.