Which of the Following Is False

question 14

Multiple Choice

Which of the following is false?

• A)U.S. government bonds are issued by the Bureau of the Public Debt and sold in regularly scheduled competitive auctions.
• B)Treasury bonds are a full faith and credit obligation of the U.S. government and are free from interest rate and default risk.
• C)The secondary market in Treasury bonds is an over-the-counter market formed by a group of government securities dealers.
• D)Interest earned on Treasury bonds is exempt from state income taxes.

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Definitions:

"50 Percent" Rule

A principle in insurance, especially in regards to total loss claims, stipulating that if the cost of repairing an item exceeds 50% of its value, it is considered a total loss.

Assumption Of Risk

Voluntarily taking on a known risk. A defense against negligence that can be used when the plaintiff had knowledge of and appreciated a danger and voluntarily exposed himself or herself to the danger.

Duty Of Care

A legal obligation that requires individuals to exercise a reasonable level of caution and protection to avoid harm to others.

Reasonable Person

A hypothetical individual in law whose behavior serves as a standard to determine what a prudent person would or would not do under similar circumstances.