SIE Module 4 Test Bank

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1. All the following statements are correct regarding U.S. Treasury bills, EXCEPT:

2. Which of the following investments would have the lowest yield of any money market security?

3. Which of the following statements is correct regarding long-term debt instruments?

4. Which of the following statements is correct regarding debt issued by the federal government?

5. Which of the following statements is correct regarding the characteristics of bonds?

6. A 35-year-old single individual with income of $45,000 invested in Series EE Savings Bonds, a Tax-Exempt bond mutual fund, and Treasury Bills. All of the following statements are correct regarding the taxation of these investments, EXCEPT:

7. Steve purchased some 7-year, $10,000 par value Treasury Inflation-Protected Securities (TIPS), with a coupon rate of 1%. Based on the consumer price index, the inflation-adjusted principal of his bonds is now $10,200. Which of the following statements is correct regarding this security?

8. Which one of the following statements is correct regarding Eurobonds and foreign bonds?

9. Which of the following statements is correct regarding government debt instruments?

10. Which one of the following is a characteristic of a Treasury bill?