Which of the Following Statements Is Not True About Treasury

question 96

Multiple Choice

Which of the following statements is not true about Treasury Inflation-Protected Securities (TIPS) ?

• A) They are currently sold with 5-, 10-, and 30-year maturities.
• B) The amount of principal increases with inflation and decreases with deflation.
• C) They pay interest twice a year, at a fixed rate.
• D) They can be held until maturity or sold before maturity.
• E) Interest income and growth in principal are exempt from federal income tax.

---

Definitions:

Ivy League

A group of eight prestigious universities in the northeastern United States known for their academic excellence and selective admissions.

Cross-Sectional Study

A research design that analyzes data collected from a population, or a representative subset, at one specific point in time.

Developmental Psychology

A branch of psychology that studies physical, cognitive, and social change throughout the lifespan.

Preferential-Looking

A research technique used to study visual attention and perception in infants based on their tendency to look longer at more visually appealing or interesting stimuli.