Question

Which of the following issues Treasury Inflation Protected Securities (TIPS)?

A. U.S. Treasury
B. Corporations
C. Municipalities
D. All of these

Answer 1

U.S. Treasury issues Treasury Inflation Protected Securities (TIPS).

Step-by-step explanation:

The correct option that issues Treasury Inflation Protected Securities (TIPS) is A. U.S. Treasury.

Treasury Inflation Protected Securities (TIPS) are bonds issued by the U.S. Treasury to protect investors against inflation. They adjust their principal value based on changes in the Consumer Price Index (CPI). TIPS provide a fixed interest rate, which is paid semiannually, and they are considered a low-risk investment option.