Which One of the Following Statements Is False

question 60

Multiple Choice

Which one of the following statements is false?

• A)The U.S.government sells bonds to obtain financing.
• B)U.S.government Treasury securities carry a reduced risk of default.
• C)Interest on U.S.government securities is taxable for federal income tax purposes.
• D)Most individual investors that purchase Treasury bills, notes, and bonds bid competitively.
• E)Treasury securities may be purchased through banks or brokers.

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Definitions:

Rate of Yield

A financial ratio that measures the annual return on an investment expressed as a percentage.

Commission Charges

Fees that are paid to an agent or company for facilitating a transaction, often calculated as a percentage of the transaction value.

Total Cost

The full amount of expenses incurred for producing or acquiring a product or service.

Commission Charges

Fees paid to an agent or company for facilitating a transaction, often a percentage of the transaction value.