2. 外语
  3. To finance the national debt, the government issues a variety of debt securities. The most widely held liquid security is the Tr

To finance the national debt, the government issues a variety of debt securities. The most widely held liquid security is the Tr

admin2013-12-25  34
问题     To finance the national debt, the government issues a variety of debt securities. The most widely held liquid security is the Treasury bill, which is commonly issued by the ministry of finance. However, some Treasury bills, like the Treasury bill of the U. S. government, do not actually pay interest. Instead they are issued at a discount from par(their value at maturity). The investor’ s yield comes from the increase in the value of the security between the time it was purchased and the time it matures.
    Treasury bills are attractive to investors because they are backed by the government and therefore are virtually free of default risk. Because even if the government ran out of money, it could simply print more to pay them off when they mature. The risk of unexpected changes in inflation is also low because of the short term to maturity. The markets for Treasury bills in most developed countries are deep and liquid. A deep market is one with many different buyers and sellers. A liquid market is one in which securities can be bought and sold quickly and with low transaction costs. Investors in markets that are deep and liquid have little risk that they will not be able to sell their securities when they want to.
As some treasury bills do not actually pay interest, they are not attractive to investors.
选项 A、Right
B、Wrong
C、Doesn’t say
答案B
解析 第二段开始明确提及Treasury bills are attractive to investors…。
转载请注明原文地址:https://kaotiyun.com/show/h1id777K
本试题收录于： FECT综合（现代金融业务）题库金融英语（FECT）分类
0

FECT综合（现代金融业务）

金融英语（FECT）

相关试题推荐
随机试题
最新回复(0)