Which of the following instruments demonstrates the safety of principal characteristic common to marketable securities?
A) common stock
B) derivatives
C) options
D) Treasury bonds

Question

Quizplus · Accepted Answer

Treasury bonds are issued by the US government and are considered to be among the safest investments available. They are backed by the full faith and credit of the US government, meaning that investors are guaranteed to receive the face value of the bond upon maturity, as well as regular interest payments. This makes Treasury bonds an attractive investment option for investors who are primarily concerned with preserving their principal.

Which of the Following Instruments Demonstrates the Safety of Principal