Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A) The federal government sells bonds to obtain financing.
• B) U.S. government securities carry a reduced risk of default.
• C) U.S. government securities are considered a very conservative and safe investment.
• D) Individual investors who purchase U.S. government securities must hold the investments until maturity.
• E) Treasury securities may be purchased through banks or brokers.

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Definitions:

Validity

Validity refers to the degree to which a test or measurement accurately reflects or assesses the intended specific concept or attribute.

Reliability

The extent to which a measurement is free from random error.

Acceptability

The degree to which a concept, action, or thing is regarded as suitable or satisfactory by a group or society.

Specificity

The degree to which something is precise, detailed, or strictly defined.