_______ are protected against inflation.
A) Treasury bonds
B) Treasury notes.
C) TIPS
D) Treasury bills

Question

Quizplus · Accepted Answer

TIPS stands for Treasury Inflation-Protected Securities. These securities are designed to protect investors from inflation. The principal value of TIPS is adjusted for inflation. This means that as the cost of living increases, so does the value of your investment. TIPS also pay interest that is adjusted for inflation, which means that the interest rate on TIPS will increase as inflation increases. Therefore, TIPS are the best choice to protect against inflation. Treasury bills, notes, and bonds do not offer the same inflation protection as TIPS.

_______ Are Protected Against Inflation