Question

Which of the following are true statements about T-bills?
I. T-bills typically sell in denominations of $10,000
II. Income earned on T-bills is exempt from all Federal taxes
III. Income earned on T-bills is exempt from state and local taxes
a. I only
b. I and II only
c. I and III only
d. I, II and III

Answer 1

Answer:

c. I and III only

Explanation:

T-bills or the Treasury bills -

They are the financial instruments that are issued by the Federal government to raise the funds .

This bill , sells in the denomination of $10,000 .

Its maturity period is for one year or less , i.e. , for short period of time .

hence , the correct statement for T - bills is  c. I and III only .