Questions: Treasury securities are bonds sold by the U.S. government to pay for the national debt.

Treasury securities are bonds sold by the U.S. government to pay for the national debt.
Transcript text: Treasury securities are bonds sold by the U.S. government to pay for the national debt.
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Solution

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The answer is: Treasury securities are bonds sold by the U.S. government to pay for the national debt.

Explanation for each option:

  1. Treasury securities are bonds sold by the U.S. government to pay for the national debt.

    • This statement is correct. Treasury securities are indeed bonds issued by the U.S. Department of the Treasury to finance government spending and manage the national debt. They are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
  2. Treasury securities are only sold to individuals in primary markets.

    • This statement is incorrect. Treasury securities are sold in primary markets to a wide range of buyers, including individuals, institutional investors, and foreign governments. They can also be traded in secondary markets after the initial sale.
  3. Treasury securities are only available to foreign investors.

    • This statement is incorrect. Treasury securities are available to both domestic and foreign investors. They are widely accessible to anyone interested in purchasing them, whether through auctions or secondary markets.
  4. Treasury securities are riskier assets than most other investment options.

    • This statement is incorrect. Treasury securities are generally considered one of the safest investment options because they are backed by the U.S. government. They are often used as a benchmark for risk-free investments.
  5. Treasury securities are backed by mortgages and student loans.

    • This statement is incorrect. Treasury securities are not backed by mortgages or student loans. They are backed by the U.S. government's ability to tax and print currency. Mortgage-backed securities and student loan-backed securities are different types of financial instruments.
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