The Ultimate Treasury Bills Quiz
by Staff
You don't need to be a stock market or finance expert to invest in Treasury bills. Treasury bills are simple and easy to purchase and are a great and safe way to invest even small amounts of money. Take this quiz and learn how you can make a wise and easy investment with Treasury bills.

What is a benefit of investing in Treasury bills?

  • It's a simple form of investment.
  • It's risk-free.
  • both of the above

When you purchase a Treasury bill you are lending money to:

  • the government
  • the bank
  • a credit union

Every Treasury bill has a maturity date. What is this?

  • The date that you purchased the Treasury bill.
  • The date that you can cash in your Treasury bill.
  • The date that you earn your interest on your Treasury bill.

What is the discount rate of a Treasury bill?

  • the percentage of interest earned
  • the percentage of money lost
  • the percentage of money the government earns

When were Treasury bills first used by the American government?

  • during World War I
  • during the Great Depression
  • during World War II

How long is a typical Treasury bill investment?

  • one year
  • five years
  • 10 years

What is the value of most Treasury bills?

  • $100 and $500
  • $1,000 and $10,000
  • $5,000 and $10,000

What is the purpose of Treasury bills?

  • to finance the government's budget
  • to finance the government 's national debt
  • both of the above

Treasury bills are exempt from:

  • state taxes
  • federal taxes
  • both of the above

Where can you purchase a Treasury bill?

  • at the bank only
  • at a governmental office only
  • at the bank, online or through a broker

How are Treasury bills issued?

  • through an auction bidding process
  • through a governmental agency
  • through the stock market

What happens if you make a non-competitive bid for a Treasury bill?

  • You accept the interest rate that is decided at the auction.
  • You accept the interest rate that is determined by the government.
  • You accept a standard four percent interest rate.

How is the interest rate of a non-competitive bid determined?

  • It's the average of all competitive bids.
  • It's a preset rate between 4 and 4.5 percent.
  • It's determined by the government's national debt rate.

What is the maximum amount of Treasury bills that you can buy as a non-competitive bidder in a single auction?

  • 5000
  • 500000
  • 5000000

What is the maximum interest an investor can receive from a competitive bid?

  • 15 percent
  • 35 percent
  • 55 percent