SIE practice questioneasyTreasury securities
Which U.S. Treasury security is always issued at a discount and matures in one year or less?
- ATreasury bill✓ Correct answer
- BTreasury note
- CTreasury bond
- DTIPS
Explanation
Why A — Treasury bill
Treasury bills (T-bills) are short-term securities issued at a discount and mature in one year or less. Treasury notes and bonds have longer maturities and pay interest. TIPS have inflation protection, but are not always issued at a discount.
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