Which of the following statements about U.S. Treasury bonds are true?
I. They are backed by the "full faith and credit" of the U.S. government.
II. They are all indexed and adjusted for inflation.
III. They trade in a very thin market.
IV. They are traded in both U.S. and foreign markets.

Question

Which of the following statements about U.S. Treasury bonds are true? 
I.	They are backed by the "full faith and credit" of the U.S. government.
II.	They are all indexed and adjusted for inflation.
III.	They trade in a very thin market.
IV.	They are traded in both U.S. and foreign markets.

Quizplus · Accepted Answer

U.S. Treasury bonds are backed by the "full faith and credit" of the U.S. government and are traded in both U.S. and foreign markets. Not all Treasury bonds are indexed for inflation; only Treasury Inflation-Protected Securities (TIPS) are. The market for Treasury bonds is not thin; it is one of the most liquid markets in the world.

Which of the Following Statements About U