Treasury bonds are

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Treasury bonds are

BlackTom AI · Accepted Answer

Question: Treasury bonds are

Because the provided data shows no answer options, we cannot explicitly restate option letters or content for comparison. The dataset indicates the answer as: 'c. long-term debt instruments issued by the government to fund the Commonwealth budget deficit and are considered risk-free.' While we cannot map this to a listed option due to the missing options field, we can discuss the standard concept.

General concept to consider: Treasury bonds are typically long-term debt securities issued by a national government to borrow money to fund government operations or deficits. They are usually considered among the safest investments in a country because they are backed by the government’s power to tax and print currency, which underpins the label of being risk-free relative to many corporate or municipal securities. In many jurisdictions (such as the Commonwealth country context), treasury bonds pay fixed interest (coupons) and mature after a longer horizon (often 10, 20, or 30 years), providing regular income and predictable principal repayment at maturity. Investors accept lower yields for this perceived safety and liquidity, though they still face risks such as inflation eroding real returns and interest-rate risk if market rates rise after purchase.

Given there are no answer options to evaluate, we cannot critique the other possible statements directly. In a typical multiple-choice set, common incorrect options might claim that treasury bonds are short-term, that they are not backed by the government, or that they carry high risk, each of which contrasts with the standard definition of government-issued, long-term, relatively low-risk debt instruments. Those alternatives would be inaccurate when describing treasury bonds in the conventional sense. If you provide the actual option list, I can map each choice precisely to this explanation and show which ones align with the standard definition and which do not.

MCD2170 - T2 - 2025 Pre-class Quiz Week 6

Treasury bonds are

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