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Q: Is it true that a treasury security is risk free?
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Are cash dividends normally paid on shares of treasury stock?

True.


What is risk free lending and borrowing?

In any kind of business transaction, all of the parties generally acknowledge that there is a level of risk that could lead to unforeseen losses to either party. This is particularly true in borrowing or lending money. The borrower could default on the loan for any number of reasons, and the lender could be left short. In addition, the interest rate could change, forcing one of sides to receive a different total return on the transaction than originally anticipated, which could have far-reaching effects. In the world of finance, however, there is a concept of risk-free borrowing and lending, where both sides know exactly what they are getting at any particular time and the amount of money is virtually risk-free. A prime example of this time of borrowing and lending is through purchase of US Treasury Bills.


You see an advertisement for a book that claims to show how you can make 1 million with no risk and with no money down Will you buy that book?

- No. An opportunity of making risk free profit would be extremely rare and if there is, that opportunity will disappear (exploited) very quickly. - Therefore, even if that book is true, the chance will not be left for me.


Can bond ratings be used as a measure of the bond's risk?

Yes OR true


Even high-risk endeavors may be undertaken when there is a clear knowledge that the sum of the benefits exceeds the sum of the costs orm is about controlling risk not avoiding all risk?

true

Related questions

Security infractions involve actions that may place classified information or operations at risk True or false?

true


No money can be taken out of the treasury of the US without a law first being passed allowing such an action?

Treasury


How expensive is the cheapest Internet Security Software package?

The cheapest internet security software package is free! Many people believe that the more that it costs, the better security. Surprisingly, that is not at all true. AVG is the leading free internet security software download.


The risk-free rate of return used to determine a firm's cost of capital will not vary depending upon the financial and operating risk level of the firm?

That is NOT true.


Is this true or false - Treasury stock transactions never increase retained earnings or net income?

true. Treasury stock never affects Net Income. Treasury stock may decrease Retained earnings but it does not increase it.


Which of these statements about the Social Security system is true?

Employers risk detection and being fined large sums of money for violating federal law.


Treasury stock is classified as?

Treasury stock is a contra-equity account. It reduces shareholder's equity to its true value.


Are cash dividends normally paid on shares of treasury stock?

True.


The journal entry to record the purchase of treasury stock will cause total stockholders' equity to decrease by the amount of the cost of the treasury stock?

true!


Does The US Treasury keeps a checking account with the Federal Reserve?

Yes the US treasury keeps a checking account with the Federal Reserve


You are responsible for the physical security of your work area?

True


What is risk free lending and borrowing?

In any kind of business transaction, all of the parties generally acknowledge that there is a level of risk that could lead to unforeseen losses to either party. This is particularly true in borrowing or lending money. The borrower could default on the loan for any number of reasons, and the lender could be left short. In addition, the interest rate could change, forcing one of sides to receive a different total return on the transaction than originally anticipated, which could have far-reaching effects. In the world of finance, however, there is a concept of risk-free borrowing and lending, where both sides know exactly what they are getting at any particular time and the amount of money is virtually risk-free. A prime example of this time of borrowing and lending is through purchase of US Treasury Bills.