Which of the Following Statements Is False

question 30

Multiple Choice

Which of the following statements is false?

• A)The federal government sells bonds and securities to finance both the national debt and the government's ongoing activities.
• B)Federal government securities carry a reduced risk of default when compared to corporate securities.
• C)Federal government treasury securities offer lower interest rates than corporate bonds.
• 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:

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability until performance.

Present Value Interest Factors

A factor used to calculate the present value of a single future payment or a series of future payments, discounted back to the present at a given interest rate.

Guaranteed Residual Value

The estimated value that a leased asset will have at the end of the lease term, as guaranteed by a third party or the lessee.

Maintenance Agreement

A contract between two parties in which one agrees to maintain an asset owned by the other party, in return for a fee.