Which of the following statements is most correct?
A) Marketable government securities are those securities that cannot be transferred to other persons or institutions and can be redeemed only by being turned in to the U.S. government
B) Nonmarketable government securities are those securities that can be transferred to other persons or institutions and can be redeemed only by being turned in to the U.S. government
C) Nonmarketable government securities are those securities that cannot be transferred to other persons or institutions and can be redeemed only by being turned in to the U.S. government
D) Marketable government securities must only be sold or transferred through commercial banks

Question

Quizplus · Accepted Answer

Nonmarketable government securities are those that are not traded in the open market and cannot be transferred to other persons or institutions. They can only be redeemed by being turned in to the U.S. government. Marketable government securities, on the other hand, can be bought and sold in the open market and can be transferred to other persons or institutions. There is no requirement for marketable securities to be sold or transferred exclusively through commercial banks.

Which of the Following Statements Is Most Correct