TIPS Are U

question 71

Multiple Choice

TIPS are U.S Treasury securities where the coupon rate is

• A) zero.
• B) indexed to the rate of inflation.
• C) indexed to the discount rate.
• D) indexed to the prime rate.
• E) indexed to the stock market.

---

Definitions:

Conduction

The process through which heat or electricity is directly transmitted through a substance when there is a difference of temperature or electrical potential between adjoining regions, without movement of the material.

Geothermal Gradient

The rate at which temperature increases with depth into the subsurface.

Alpha Decay

A type of radioactive decay in which an atomic nucleus emits an alpha particle (2 protons and 2 neutrons), resulting in the formation of a new atom with a lower atomic number.

Heat Energy

A form of energy that is transferred between systems or objects with different temperatures, driving processes like evaporation and melting.