Which of the following characteristics apply to U. S. Treasury bills? I. income taxed at both the federal and state level
II) minimal, if any, default risk
III) marketable, but not liquid
IV) short maturities

Question

Quizplus · Accepted Answer

U.S. Treasury bills have minimal default risk and short maturities, making them highly attractive to investors as a safe haven investment option. Income generated from Treasury bills is taxable at the federal level but not at the state level. Treasury bills are highly liquid and easily marketable. Therefore, options (I) and (III) are incorrect, while options (II) and (IV) are true. Hence, option B is the correct answer.

Which of the Following Characteristics Apply to U