SIE Exam Question 175: Answer and Explanation

Question: 175

Which of the following investors would be best suited to invest in US Treasuries?

• A. A 25-year-old interested in speculative investments
• B. A 25-year-old with an investment objective of growth
• C. A retired individual with an investment objective of growth
• D. A retired individual with an investment objective of income

Correct Answer: D

Explanation:

A retired individual with an investment objective of income would be the investor best suited to invest in US Treasury bonds. US Treasury bonds, or T-Bills, are best suited for older, conservative investors because they are most likely to both retain their value and generate income. T-Bills are backed by the full faith and credit of the US government.