SIE practice questionmediumT-Bills
Which is TRUE regarding Treasury bills (T-bills)?
- AThey pay interest semi-annually.
- BThey are short-term exempt securities issued at a discount.✓ Correct answer
- CThey are only sold to institutional investors.
- DThey are regulated by the MSRB.
Explanation
Why B — They are short-term exempt securities issued at a discount.
Treasury bills are short-term U.S. government securities that are exempt from registration and issued at a discount, maturing in one year or less. They do not pay semiannual interest, are available beyond institutional investors, and are not regulated by the MSRB.
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