Treasury Inflation-Protected Securities (TIPS)

question 22

Multiple Choice

Treasury Inflation-Protected Securities (TIPS)

• A) pay a fixed interest rate for life.
• B) pay a variable interest rate that is indexed to inflation but maintain a constant principal.
• C) provide a constant stream of income in real (inflation-adjusted) dollars.
• D) have their principal adjusted in proportion to the Consumer Price Index.
• E) provide a constant stream of income in real (inflation-adjusted) dollars and have their principal adjusted in proportion to the Consumer Price Index.

---

Definitions:

Upper South

A region in the United States that traditionally includes states like Virginia, North Carolina, and Tennessee, known for its historical role in the Civil War and as a part of the broader southern culture.

Emancipated

Freed from legal, social, or political restrictions; often used in historical context to describe the liberation of slaves.

Religious Toleration

Religious toleration refers to the acceptance and allowance of different religious beliefs and practices without persecution.

Religious Liberty

The freedom to practice and exercise one's religion freely without persecution or discrimination, a principle upheld in many democratic countries.