Question

Treasury Bonds are _______.A. liquid, but not a store of value. B. a store of value, but not liquid. C. both liquid and a store of value. D. neither liquid nor a store of value.

Answer 1

Answer:

C. both liquid and a store of value.

Explanation:

Treasury Bonds are fixed interest long term government debt instrument issued by the government through the monetary authorities (Federal Reserve or Central Bank) to raise fund from the public. Treasury bond has a maturity of between 10 and 30 years.

Treasury bonds is one of the most liquid financial instrument in the world as  it can be turned to cash within a day.

The T-Bond, as treasury bonds is often called is a good store of value as it pays interest and the principal is backed by a legal contract.