Dave Johnson's objective was to purchase a government bond that provided some protection against inflation as measured by the consumer price index.To fulfill this objective,John purchased a:
A)T-bill.
B)T-note.
C)T-bond.
D)TIPS.
E)general obligation bond.

Question

Quizplus · Accepted Answer

TIPS, or Treasury Inflation-Protected Securities, are designed specifically to provide protection against inflation. They are indexed to the Consumer Price Index (CPI), ensuring that the principal value of the bond increases with inflation, thereby offering an inflation hedge.

Dave Johnson's Objective Was to Purchase a Government Bond That