What Is the Difference Between an Inflation-Indexed Treasury Bond,and a Treasury

question 46

Multiple Choice

What is the difference between an inflation-indexed Treasury bond,and a Treasury bond that is not indexed?

• A) An inflation-indexed Treasury bond guarantees a certain real rate of return,while a nonindexed Treasury bond does not.
• B) A nonindexed Treasury bond guarantees a certain real rate of return,while a nonindexed Treasury bond does not.
• C) An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve,while a nonindexed Treasury can be purchased through a broker.
• D) An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return,while a nonindexed Treasury bond does not.

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Definitions:

Motor Neurons

Neurons that transmit impulses from the spinal cord or brain to muscle or glandular tissues, facilitating movement and action.

Glial Cell

Nervous system cell that provides insulation, nutrients, and support and that aids in repairing neurons and eliminating waste products.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Central Nervous System

The section of the nervous system that includes the brain and spinal cord, tasked with assimilating sensory data and reacting appropriately.