Which of the Following Statements About Treasury Regulations Is False

question 57

Multiple Choice

Which of the following statements about Treasury regulations is false?

• A)Treasury regulations are written to interpret and explain the Internal Revenue Code.
• B)Treasury regulations are part of the statutory law.
• C)A federal court can invalidate a Treasury regulation if the court concludes that the regulation incorrectly interprets the Internal Revenue Code.
• D)None of the above is false.

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Definitions:

Coupon

The interest rate paid by fixed-income securities, typically expressed as an annual percentage of the face value.

Selling For

The process or act of offering goods or services in exchange for money.

Annually

Referring to events or measurements that occur once every year.

Indexed Bonds

The interest rate of such a bond is based on an inflation index such as the consumer price index (CPI), so the interest paid rises automatically when the inflation rate rises, thus protecting the bondholders against inflation.