Which of the Following Is Not a Characteristic of Treasury

question 53

Multiple Choice

Which of the following is not a characteristic of Treasury bonds?

• A) Long-term debt securities
• B) Issued by the U.S. Treasury
• C) Exempt from federal tax
• D) Highly liquid

---

Definitions:

Simple Interest

Interest earned or paid on the original principal only of a deposit or loan, without compounding.

Loan Repaid

The act of paying back borrowed money to the lender.

Borrowed

The state of having taken something on loan, often with the obligation to return it or repay an equivalent amount.

Annual Rate

The interest rate for a whole year, as opposed to just a monthly or daily rate.