An important investment security popular with banks that must,by law,mature within one year from the date of issue and which has a high degree of safety and marketability is the:
A)Treasury bill.
B)Treasury note.
C)FNMA note.
D)bankers' acceptance.
E)Eurodollar CD.

Question

Quizplus · Accepted Answer

Treasury bills are commonly known as T-bills and are issued by the US government. These are short-term securities with maturities of 4, 8, 13, 26, or 52 weeks. T-bills are highly liquid and are considered to be one of the safest securities available as they are backed by the full faith and credit of the US government. Banks are required by law to invest in such safe and marketable securities that mature within a year.

An Important Investment Security Popular with Banks That Must,by Law,mature