Securities issued and guaranteed as to principal and interest payments by the U.S. Government are assumed by investors in the money markets to carry zero ____ risk. Choose the correct term to fill in the blank above from the choices listed below.
A) Market
B) Reinvestment
C) Default
D) Inflation
E) Currency
F) Political

Question

Quizplus · Accepted Answer

Securities issued and guaranteed by the U.S. Government, such as Treasury bills and bonds, are considered to have no default risk because it is assumed the government will always be able to fulfill its debt obligations.

Securities Issued and Guaranteed as to Principal and Interest Payments