The bid price of a T-bill in the secondary market is
A) the price at which the dealer in T-bills is willing to sell the bill.
B) the price at which the dealer in T-bills is willing to buy the bill.
C) greater than the asked price of the T-bill.
D) the price at which the investor can buy the T-bill.
E) never quoted in the financial press.

Question

Quizplus · Accepted Answer

The bid price of a T-bill in the secondary market is the price at which the dealer is willing to buy the bill. This contrasts with the ask (or offered) price, which is the price at which the dealer is willing to sell the bill to an investor.

The Bid Price of a T-Bill in the Secondary Market