Multiple Choice
Which of the following about Treasury bonds is NOT correct?
A) Banks invest excess short-term funds in Treasury bonds as they are liquid.
B) A financial institution with a need for funds can quickly sell some its government securities.
C) Treasury bonds can be held to manage the maturity profile of a bond portfolio.
D) Commercial banks are required by the prudential supervisor to hold a prescribed number of Treasury bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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