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 securities.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true: Lower transaction costs increase marketability, yield varies with marketability, and U.S. Treasury bills are highly marketable due to their active secondary market.

Which of the Following Statements Is True