If you purchase a Treasury bond, the Treasury bond is
A)an asset to you as well as an asset to the U.S. government.
B)an asset to you, but a liability to the U.S. government.
C)a liability to you, but an asset to the U.S. government.
D)a liability to you as well as a liability to the U.S. government.

Question

Quizplus · Accepted Answer

When you purchase a Treasury bond, it represents an asset to you because it is an investment from which you expect to receive future payments. For the U.S. government, however, the bond is a liability because it represents money the government must pay back to bondholders in the future.

If You Purchase a Treasury Bond, the Treasury Bond Is