21. Which of the following instruments is commonly used for short-term investment by individuals?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
22. Which of the following instruments is issued by the U.S. Department of the Treasury?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
23. Which of the following instruments is primarily traded in the primary market?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
24. Which of the following instruments is issued by banks to other banks in order to meet reserve requirements?
a) Treasury bills
b) Commercial paper
c) Certificates of deposit
d) Repurchase agreements
25. What is the typical interest rate paid on a Treasury bill?
a) Fixed rate
b) Variable rate
c) Prime rate
d) Discount rate
