SIE Exam Question 947: Answer and Explanation

Question: 947

All but which of the following are correct regarding Treasury bills?

• A. They have maturities of one year or less.
• B. They are sold in minimum denominations of $500.
• C. They are considered to be risk free of default.
• D. They are sold at a discount to par.

Correct Answer: B

Explanation:

Treasury bills are sold at a discount to par and have maturities of one year or less. They are considered to be risk free of default and are sold in minimum denominations of $1,000.