Brown Trucking is buying a U.S. Treasury bill today with the understanding that the seller will buy it back tomorrow

Which one of the following statements is correct?    A.  Money market accounts are low-risk, high-return investments. B.  The rate of return earned on short-term securities tends to exceed that earned on long-term securities. C.  U.S. Treasury bills are well suited for short-term investments. D.  The income earned on U.S. Treasury bills is exempt from all taxation. E.  Short-term investments tend to have high levels of default risk. Refer to section 19.5

32.	Municipal bonds:    A.  are less liquid than U.S. Treasury bills. B.  produce income that is subject to federal income taxation. C.  generally pay a higher coupon than corporate bonds. D.  are also referred to as commercial paper. E.  are issued by the federal government. Refer to section 19.5

33.	Money market securities have which of the following characteristics? I. long maturities II. low default risk III. high degree of liquidity IV. low rates of return    A.  I and III only B.  II and III only C.  I and IV only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 19.5

34.

A jumbo CD:    A.  is issued by the federal government. B.  generally matures between 2 and 5 years. C.  is a loan of $100,000 or more to a municipality. D.  is a loan of $1 million or more on a short-term basis. E.  is a short-term loan of $100,000 or more to a commercial bank. Refer to section 19.5

35.

Brown Trucking is buying a U.S. Treasury bill today with the understanding that the seller will buy it back tomorrow at a slightly higher price. This investment is known as a:    A.  commercial paper transaction. B.  repurchase agreement. C.  private certificate of deposit. D.  revenue anticipation note. E.  bill anticipation note. Refer to section 19.5