CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

An example of risk-free lending is ______.
A. purchasing T-bills
B. getting a margin loan from a stock broker
C. keeping currency in a wall safe
Explanation: Purchasing T-bills is effectively lending the U.S. government money, which is riskless due to the ability of the government to always pay off its loans (at least nominally).

User Contributed Comments 2

User Comment
sagrr selling? not purchasing.
dipu617 Its purchasing. When we purchase T-bills, we lend moeny to the issuer. :-)
You need to log in first to add your comment.