SIE practice questioneasyT-Bills - Characteristics
Which statement correctly describes U.S. Treasury bills (T-bills)?
- AThey are short-term debt issued at a discount and mature at par value✓ Correct answer
- BThey pay semiannual interest
- CThey have maturities of 10 years or longer
- DThey are issued by municipalities
Explanation
Why A — They are short-term debt issued at a discount and mature at par value
T-bills are short-term (up to 1 year) U.S. government securities sold at a discount, maturing at face value. They do not pay periodic interest, unlike T-notes or bonds. Municipal securities are issued by state/local governments.
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