Treasury Bills Overview

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Who traditionally invests in Treasury bills?

Hedge funds

Small retail investors

Credit unions

Insurance companies (correct)

What is the appeal of Treasury bills to investors?

They offer a return on investment through a discount on the purchase price. (correct)

They pay high interest rates compared to other retail instruments.

They are sold at par value.

They are backed by physical assets.

What distinguishes Treasury bills from other retail instruments?

They are tax-free investments.

They are backed by physical assets.

They pay interest on a regular basis.

They mature at a discounted price. (correct)

How often are Treasury bills sold at auction?

Every two weeks Signup and view all the answers

How are Provincial bonds and Government of Canada bonds similar?

They are both considered debentures. Signup and view all the answers

Which of the following is NOT a factor that determines the credit quality of a province?

The political affiliation of the provincial government Signup and view all the answers

Which of the following securities are considered bonds in practice?

Debentures Signup and view all the answers

Which of the following factors is NOT mentioned as influencing the bond quality?

Interest rates Signup and view all the answers

Which of the following statements is TRUE about provincial bonds?

Different provinces' bonds trade at differing prices and yields Signup and view all the answers

What is the primary factor mentioned in the text that determines the credit quality of a province?

The degree of certainty that interest will be paid and principal repaid when due Signup and view all the answers

Treasury Bills Overview

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Questions and Answers

Who traditionally invests in Treasury bills?

What is the appeal of Treasury bills to investors?

What distinguishes Treasury bills from other retail instruments?

How often are Treasury bills sold at auction?

How are Provincial bonds and Government of Canada bonds similar?

Which of the following is NOT a factor that determines the credit quality of a province?

Which of the following securities are considered bonds in practice?

Which of the following factors is NOT mentioned as influencing the bond quality?

Which of the following statements is TRUE about provincial bonds?

What is the primary factor mentioned in the text that determines the credit quality of a province?

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