Government obligations, such as Treasury bills and bonds, have
A)high liquidity and high information costs.
B)low liquidity and low information costs.
C)low liquidity and high information costs.
D)high liquidity and low information costs.

Question

Quizplus · Accepted Answer

Government obligations such as Treasury bills and bonds have high liquidity because they are easily tradable in the financial markets. Additionally, they have low information costs because their creditworthiness is widely known and they are typically issued with standardized terms and conditions.

Government Obligations, Such as Treasury Bills and Bonds, Have