Which one of the following statements is false?
A)The U.S.government sells bonds to obtain financing.
B)U)S.government securities carry a decreased risk of default.
C)Interest on U.S.government securities is taxable for federal income tax purposes.
D)Most individual investors that purchase Treasury securities bid competitively.
E)Treasury securities may be purchased directly from banks or brokers.

Question

Quizplus · Accepted Answer

Most individual investors purchase Treasury securities through a non-competitive bidding process, meaning they agree to accept whatever yield is determined at auction, rather than bidding competitively for a specific yield. Competitive bidding is more common among institutional investors.

Which One of the Following Statements Is False