Which of the Following Statements Is Not True About Treasury

question 139

Multiple Choice

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

• 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.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage level.

Total Assets

The combined value of a company's immediate and long-term assets.

Total Liabilities

Total liabilities represent the aggregate of all debts and financial obligations owed by an entity at a given point in time.

Processing Transactions

Processing transactions involves recording, analyzing, and managing the financial events and transactions of a company, ensuring accuracy in the financial statements.