Which of the following are true statements about T-bills?
I. T-bills typically sell in denominations of $10,000.
II. Income earned on T-bills is exempt from all federal taxes.
III. Income earned on T-bills is exempt from state and local taxes.
A) I only
B) I and II only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

T-bills typically sell in denominations of $10,000 (I) and income earned on T-bills is exempt from state and local taxes (III). However, income earned on T-bills is not exempt from all federal taxes (II).

Which of the Following Are True Statements About T-Bills