Which One of the Following Statements Is False

question 26

Multiple Choice

Which one of the following statements is false?

• A)The U.S.government sells bonds to obtain financing.
• B)U)S.government securities carry a decreased risk of default.
• C)Interest on U.S.government securities is taxable for federal income tax purposes.
• D)Most individual investors that purchase Treasury securities bid competitively.
• E)Treasury securities may be purchased directly from banks or brokers.

---

Definitions:

Highly Compensated Employees

Employees who receive compensation above a specific threshold set by the IRS, making them subject to different regulations for retirement plan contributions.

Qualified Status

A designation indicating that a plan, typically a retirement plan, meets the requirements set by the IRS to receive tax advantages.

Roth IRA

A retirement savings account that allows your money to grow tax-free, with qualified withdrawals in retirement being tax-free as well.

Deductible Contribution

An investment or payment that can be subtracted from one's gross income to reduce taxable income, often related to retirement accounts or charitable donations.