Which of the following is a characteristic of Treasury bills?
A)They are coupon instruments
B)They are short-term debt instruments issued by major corporations
C)They are discount securities
D)They have more risk than other money market securities
E)All the options are characteristics of Treasury bills

Question

Quizplus · Accepted Answer

Treasury bills are discount securities, meaning they are sold at a discount to their face value and do not pay a coupon or interest rate. They are also short-term debt instruments issued by the United States Treasury, not major corporations, and are considered to be very low-risk investments. Therefore, option E is incorrect as it includes A and B, which are not characteristics of Treasury bills, and D is incorrect as it states that Treasury bills have more risk than other money market securities, which is not true.

Which of the Following Is a Characteristic of Treasury Bills