Which of the Following Statements Is True of Government Securities

question 133

Multiple Choice

Which of the following statements is true of government securities?

• A) They pay their holders a stated rate of interest after the securities mature.
• B) The interest income earned on municipal bonds is subject to federal income taxes.
• C) The biggest single issuer of government securities is the federal government.
• D) They are IOUs issued to government entities when corporate entities borrow money.

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Definitions:

Spearman's "g" Factor

A theory proposing that a general intelligence factor underlies all cognitive abilities, measurable by performance on various tasks.

Intellectual Ability

The capacity to think abstractly, reason, understand complex ideas, learn quickly and from experience, and solve problems.

Specialized Intellectual Abilities

Particular cognitive skills that are highly developed or honed in specific areas, such as mathematical reasoning or linguistic talent.

"g" Factor

A theory suggesting that a general intelligence factor underlies all cognitive abilities, significantly influencing performance on various intellectual tasks.