Which of the Following Statements Is Not True Regarding STRIPS

question 41

Multiple Choice

Which of the following statements is not true regarding STRIPS?

• A) They are not issued by the Treasury.
• B) They are created and sold by various financial institutions.
• C) They are backed by the U.S. government.
• D) They have to be held until maturity.
• E) All of the above are true regarding STRIPS.

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Definitions:

Drum In Hat

A miniature drum brake assembly housed within the hat of a rear disc brake rotor to serve as the parking brake.

Wear Indicating Device

A feature built into a brake pad or tire that provides a visual or audible warning when the component has worn down to its replacement limit.

Retraction Mechanism

A system designed to withdraw or pull back a part or component, commonly found in devices like seat belts or retractable pens.

Pad Wear

The natural wear and tear on brake pads over time due to friction when the brakes are applied, affecting brake performance and safety.