Which One of the Following Statements Is Correct

question 242

Multiple Choice

Which one of the following statements is correct?

• A) Short-term securities are more interest rate sensitive than long-term securities.
• B) The rate of return earned on short-term securities tends to exceed that earned on long-term securities.
• C) Treasury bills are well suited for short-term investments.
• D) The income earned on Treasury bills is exempt from all taxation.
• E) Short-term investments tend to have high levels of default risk.

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Definitions:

Depression

A psychological condition defined by a continuously low mood or lack of enthusiasm for activities, leading to considerable disruption in everyday functioning.

Well-Being

The state of being comfortable, healthy, or happy, encompassing physical, mental, and emotional health and satisfaction.

Good Things

Positive aspects, events, or outcomes that contribute to well-being and happiness.

Optimist

An individual who tends to maintain a positive outlook and expects good outcomes even in the face of adversity.