Investing Basics: Chapter 3 quiz

Why would you choose the I-bond over the Series EE Bond?

If inflation was a concern.

Because it shows patriotism during wartime.

The interest earned is free from federal, state and local taxes.

True or false: Treasury bills mature in two to 10 years.

True

False

How do TIPS protect against inflation?

The investor is guaranteed to receive the principal even if deflation squashes the value of the security.

The principal is adjusted semiannually based on the consumer price index with interest rate payments based on the adjusted principal.

Both of the above

Neither ''a'' or ''b''