Question 1
Treasury bills are government securities that
◦ mature in more than five years.
◦ have an infinite maturity date.
◦ mature in less than one year.
◦ have no maturity date.
Question 2
The three-month Treasury bill rate is the
◦ most widely followed short-term interest rate.
◦ same as the prime rate.
◦ interest rate the Fed charges commercial banks for borrowing.
◦ interest rate used by commercial banks to loan to other commercial banks.