SIE practice questionmediumTreasury securities
Which of the following is NOT a characteristic of Treasury bills?
- APay semiannual interest✓ Correct answer
- BIssued at a discount
- CMature in one year or less
- DBacked by the U.S. government
Explanation
Why A — Pay semiannual interest
T-bills pay no interest and are issued at a discount, maturing in a year or less. They are backed by the U.S. government; only semiannual interest is incorrect.
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