Which of the Following Is NOT True About US Treasury

question 11

Multiple Choice

Which of the following is NOT true about US Treasury securities?

• A) These securities are virtually free from default risk.
• B) They trade in a market with some of the smallest bid/ask spreads in the world.
• C) Their interest payments are free from state and local taxes.
• D) They have low minimum denominations and offer a spectrum of maturities that range from one day to thirty years.
• E) They accurately reflect a company's cost of borrowing.

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Definitions:

Bloodstream

The flowing body fluid that circulates throughout the body via the heart and blood vessels, carrying oxygen and nutrients to tissues and removing waste.

Active Transport

The energy-dependent process of moving molecules across a cell membrane against their concentration gradient, typically involving specific transport proteins.

Energy

The capacity to do work or cause physical change; energy can exist in a variety of forms, such as electrical, chemical, mechanical, and thermal.

Concentration

A measure of the amount of a given substance contained per unit of volume.