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    Question

    Which of the following statements accurately describes the features of Treasury Bills (TBills)?

    A T-bills pay periodic interest throughout their life. Correct Answer Incorrect Answer
    B T-bills are issued at face value and redeemed at a premium. Correct Answer Incorrect Answer
    C T-bills are Longterm debt instruments with maturities exceeding one year. Correct Answer Incorrect Answer
    D T-bills are considered highly liquid and virtually risk-free due to government backing. Correct Answer Incorrect Answer
    E T-bills are primarily used for Longterm investment by individual investors. Correct Answer Incorrect Answer

    Solution

    T-bills are considered highly liquid and virtually risk-free due to government backing.

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