Why does the Treasury bill serve as a benchmark security?
What will be an ideal response?
The Treasury bill is the benchmark security for the economy because bills are auctioned off every week, and the rates offered on them reflect current demand and supply conditions for short-term funds without credit risk. Other interest rates are scaled up from this short-term, riskless rate by adding time and risk premiums.
You might also like to view...
Answer the following statements true (T) or false (F)
1.Women are more likely than men to confront a person whom they feel is being deceptive. 2.Character-based sources of trust include integrity, consistency of behavior, and discretion. 3.Telling a “small” lie to a partner in a relationship is often a sign that the relationship will not last. 4.Gossip has positive effects, often fostering relationships and kinships with others. 5.The media is among the most powerful influence on how we view different groups in society.
Harvey Jones, CPA, uses statistical sampling to test control procedures. What is a benefit of using statistical sampling?
A. It eliminates the use of judgment required of Jones because the AICPA has established numerical criteria for this type of testing. B. It increases Jones' knowledge of the entity's prescribed procedures and their limitations. C. It provides a means of mathematically measuring the sampling risk that result from examining only a part of the data. D. It is required by generally accepted auditing standards.
When obtaining evidence about internal control operating effectiveness, the auditor will select only entity-wide controls for testing
a. True b. False Indicate whether the statement is true or false
Which theory challenges the assumption that leaders treat followers in a collective way?
A. LMX B. skills C. trait D. style