Which of the following statements is most correct?
A)Marketable government securities are those securities that cannot be transferred to other persons or institutions and can be redeemed only by being turned in to the U.S.government;the United States must rely on the willingness of foreign and international investors to hold a substantial portion of the outstanding interest-bearing public debt securities issued to finance the national debt.
B)Nonmarketable government securities are those securities that can be transferred to other persons or institutions and can be redeemed only by being turned in to the U.S.government;the United States must rely on the willingness of foreign and international investors to hold a substantial portion of the outstanding interest-bearing public debt securities issued to finance the national debt.
C)Nonmarketable government securities are those securities that cannot be transferred to other persons or institutions and can be redeemed only by being turned in to the U.S.government;the United States must rely on the willingness of foreign and international investors to hold a substantial portion of the outstanding interest-bearing public debt securities issued to finance the national debt.
D)Nonmarketable government securities are those securities that cannot be transferred to other persons or institutions and can be redeemed only by being sold in the secondary market;the United States must rely on the willingness of foreign and international investors to hold a substantial portion of the outstanding interest-bearing public debt securities issued to finance the national debt.
E)none of the above

Question

Quizplus · Accepted Answer

Marketable securities can be bought and sold in secondary markets, while nonmarketable securities cannot. Therefore, option A is incorrect. Option B is incorrect because it incorrectly defines nonmarketable securities as transferable to other persons or institutions. Option D is incorrect because it falsely claims that nonmarketable securities can be sold in secondary markets. Option C accurately defines nonmarketable securities, which can only be redeemed by turning them in to the U.S. government. The statement about relying on foreign and international investors to hold a substantial portion of the national debt is true and applies to all types of U.S. government securities, both marketable and nonmarketable.

Which of the Following Statements Is Most Correct