US Treasury Securities Are Considered to Carry No Risk Spread

question 108

Multiple Choice

U.S. Treasury securities are considered to carry no risk spread because:

• A) they are the closest thing to default-risk free that an investor can obtain.
• B) the prices of U.S. Treasury bonds never change.
• C) the yields on U.S. Treasury bonds never change.
• D) the yields on U.S. Treasury bonds are always low.

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Definitions:

Androgen

A type of hormone that plays a role in male traits and reproductive activity; testosterone is the most well-known androgen.

Estrogen

A group of hormones responsible for the development and regulation of female characteristics and reproductive processes.

Pituitary

A pea-sized gland located at the base of the brain, crucial for controlling various hormonal activities in the body.

Future Time Perspective

The degree to which individuals think about the future, make future-oriented plans, and take action to achieve future goals.