Which of the following statements BEST describes why U.S.Treasury securities have always been considered risk-free investments?
A) They are backed by the U.S. government.
B) They have a guaranteed rate of return.
C) They are easily sold.
D) They are readily available for purchase.
E) They earn a great profit on the international money market.

Question

Quizplus · Accepted Answer

U.S. Treasury securities are backed by the full faith and credit of the U.S. government, which is considered to be one of the most creditworthy entities in the world. This means that even in times of economic uncertainty, the U.S. government is expected to honor its debt obligations, making investments in U.S. Treasury securities relatively risk-free. The other choices do not fully capture why U.S. Treasury securities are considered risk-free investments.

Which of the Following Statements BEST Describes Why U