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:

Indifference Curves

Indifference curves are graphical representations used in microeconomics to show combinations of two goods among which a consumer is indifferent, reflecting their preferences and consumption choices.

Marginal Utility

The change in satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Utility-Maximizing

The concept in economics and consumer theory where individuals or firms make decisions that lead to the highest level of satisfaction or benefit within their constraints.

Total Utility

The cumulative satisfaction or usefulness that a person gains from consuming all units of a particular good or service.