Treasury securities are first sold through auctions to large financial firms, which are known as primary dealers. These primary dealers then sell the securities to individual investors and other financial institutions in the secondary market. The U.S. Treasury Department holds regular auctions of these securities to finance the government's borrowing needs.

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Treasury Securities

Question 87

Multiple Choice

Treasury securities

A) are first bought and sold in secondary markets.
B) are first sold through auctions to large financial firms.
C) are only available to domestic buyers.
D) can never default.
E) are riskier than most other investment options.

Correct Answer: