Examveda
Examveda

Financial security in which there is no default risk and issues by U.S governments is classified as

A. U.S treasury bonds

B. mortgages

C. municipal bonds

D. corporate bonds

Answer: Option A

Solution(By Examveda Team)

Financial security in which there is no default risk and issues by U.S governments is classified as U.S treasury bonds. Treasury bonds are U.S. government debt securities with a maturity range between 10 and 30 years and which are marketable and set at a fixed interest rate. T-bonds pay semiannual interest payments until maturity, at which point the face value of the bond is paid to the owner.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process