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  • 09-07-2019
  • Business
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Inflation-indexed Treasury securities are commonly called ____. A. PIKsB. CARsC. TIPSD. STRIPS

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extensionprenton
extensionprenton extensionprenton
  • 13-07-2019

Answer:

The correct answer is option C. "TIPS".

Explanation:

Inflation-Indexed Treasury Securities are commonly called TIPS, for being the abbreviation of the other name that these securities receive: Treasury Inflation-Protected Securities (TIPS). These treasury bonds are designed to protect the investors by providing bonds that are not affected by inflation. TIPS have a U.S. government backing, therefore, the investors receive a fixed interest rate.

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