Which of the following statements is true?
A) The lower the transaction costs are, the greater a security's marketability.
B) The interest rate, or yield, on a security varies with its degree of marketability.
C) U.S. Treasury bills have the largest and most active secondary market and are considered to be the most marketable of all debt securities.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All the statements provided are true. Lower transaction costs increase a security's marketability because it becomes cheaper and easier to trade. The interest rate or yield on a security indeed varies with its degree of marketability; more marketable securities typically have lower yields because they are considered less risky and more liquid. U.S. Treasury bills are known for their large and active secondary market, making them the most marketable of all debt securities due to their high liquidity and low risk.

Which of the Following Statements Is True