Which one of the following statements concerning Treasury bonds is correct?
A) The par values of all Treasury bonds are adjusted periodically in response to changes in the rate of inflation.
B) Treasury bonds have maturity dates ranging from two to ten years.
C) Interest earned on Treasury bonds is tax-exempt at the federal level.
D) All Treasury securities are backed by the "full faith and credit" of the U.S. government.

Question

Quizplus · Accepted Answer

Treasury bonds, along with all Treasury securities, are indeed backed by the "full faith and credit" of the U.S. government, ensuring their safety and reliability as an investment. This guarantee means the government promises to repay the debt, making these securities among the safest investments.

Which One of the Following Statements Concerning Treasury Bonds Is