Investors who wish to lend money to the U.S. Treasury on a short-term basis would purchase

Question

Quizplus · Accepted Answer

Investors who wish to lend money to the US government on a short-term basis would purchase Treasury bills. Treasury bills are short-term debt securities issued by the US government and are typically sold with maturities of 4, 13, or 26 weeks. They are considered one of the safest investments because they are backed by the full faith and credit of the US government. Treasury bonds, municipal bonds, and government-agency bonds all have longer maturities than Treasury bills and are not typically used for short-term lending.

Investors Who Wish to Lend Money to the U