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
Solution
The correct answer is "T-bills".
Step by Step Explanation:
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The question is asking about short-term debt obligations sold by the U.S. government to raise money.
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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 5 million.
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Commercial paper is a short-term unsecured promissory note issued by corporations and foreign governments, not the U.S. government.
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CDs, or Certificates of Deposit, are issued by banks, not the U.S. government.
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Bonds are typically long-term debt securities, not short-term.
So, the correct answer to the question is T-bills.
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