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Inflation-indexed Treasury securities are commonly called: A. PIKs B. CARs C. TIPS D. STRIPS

Question:

Inflation-indexed Treasury securities are commonly called:

A. PIKs

B. CARs

C. TIPS

D. STRIPS

Inflation-Indexed Treasury Securities:

Inflation-indexed Treasury securities are debt instruments issued by the U.S. government whose principal is adjusted to inflation. Such financial instruments are suitable for investors that seek to reduce the inflation risk.

Answer and Explanation: 1

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The answer is C. TIPS.

Treasury inflation-indexed securities are called TIPS. These bonds help their holders to protect against losses due to...

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Government Securities: Definition, Types & Examples

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Chapter 24 / Lesson 12
95K

Find out exactly what are government securities and learn about the government securities definition. Discover the purpose of government-backed securities and see how they are utilized in the financial world through their different types and examples.


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