The bid price of a treasury bill is _________.
A) the price at which the dealer in treasury bills is willing to sell the bill
B) the price at which the dealer in treasury bills is willing to buy the bill
C) greater than the ask price of the treasury bill expressed in dollar terms
D) the price at which the investor can buy the treasury bill

Question

Quizplus · Accepted Answer

The bid price of a treasury bill is the price at which the dealer in treasury bills is willing to buy the bill. This is typically lower than the ask price, which is the price at which the dealer is willing to sell the bill. Therefore, the investor can buy the bill at the bid price.

The Bid Price of a Treasury Bill Is _________