ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Transferable treasury securities
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Nontransferable money market bond securities
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Transferable treasury accounts
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Nontransferable treasury securities
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Detailed explanation-1: -Transferring Securities. Are EE and I Bonds transferable? Yes. The owner can transfer EE and I Bonds to another person with a TreasuryDirect account; however, you must wait five business days after the purchase date to transfer the bonds.
Detailed explanation-2: -Savings bonds are not transferable, meaning you can cash them in but you can’t sell them to someone else. Their market price doesn’t rise when interest rates fall or fall when rates rise. Savings bonds will never have to be cashed in for less than you paid for them.
Detailed explanation-3: -Finally, savings bonds can’t be traded or sold between individuals (no secondary market) and must be redeemed through the government itself. By comparison, Treasury bonds, municipal bonds, and corporate bonds are much more liquid; all three types can be traded on a secondary market before maturity.
Detailed explanation-4: -Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures. EE Bonds, I Bonds, and HH Bonds are U.S. savings bonds. For information, see U.S. Savings Bonds.