1 Which one of the following has the lowest level of risk a

1 Which one of the following has the lowest level of risk?

a. Money Market Mutual Fund Account
b. Banker’s Acceptance
c. US Treasury Bill
d. Commercial Pape

Which of the following investments has the biggest tax advantage?

a. Municipal bonds
b. Corporate bonds
c. Stocks
d. Commercial paper

Companies with limited earnings and strong growth opportunities

a. Generally pay high dividends
b. Are speculative stocks
c. Generally do not pay high dividends
d. Are called blue-chip stocks

ANSWER ALLLL

Solution

1)

US Treasury bills are the guaranteed by the federal government. Hence, there will be no default risk. Coupon payments are also received without guarantee. Remaining kinds securities will have some sort of risk.

Hence, correct option is c. US Treasury Bill.