Series 7 practice questioneasyTrade Settlement — Government Securities
U.S. Treasury securities settle on what basis in regular way trading?
- AT+1
- BT+0 (same day / next day)✓ Correct answer
- CT+2
- DT+3
Explanation
Why B — T+0 (same day / next day)
U.S. government securities, including Treasury bills, notes, and bonds, settle on a T+0 basis (same day or next business day) in regular way trading. This faster settlement reflects the high liquidity and low credit risk of government securities. The T+0 settlement for government securities has been in place long before the move to T+1 for equities and corporate bonds.
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