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. It is the highest price that a buyer is willing to pay in the market. The ask price, on the other hand, is the price at which the dealer is willing to sell the bill. Therefore, the bid price is the opposite of the ask price. Option A, C, and D are incorrect.

The Bid Price of a Treasury Bill Is ________