Which description matches debt obligations issued by the U.S. government?

• A. Liquidity
• B. Treasuries
• C. Open-End Fund
• D. Credit Bureau

Answer: (B)

Debt obligations issued by the U.S. government are called Treasuries. These are securities sold by the U.S. Treasury to fund government operations and are backed by the full faith and credit of the United States. They come in several forms—short-term bills, intermediate notes, long-term bonds, and inflation-protected securities—and are known for very low risk and high liquidity because there is a large, active market for them. Treasuries serve as a benchmark for risk-free interest rates in finance.

Understanding the other descriptions helps confirm why Treasuries fit: “Liquidity” describes how easily an asset can be bought or sold, which Treasuries are, but liquidity is a characteristic, not the issuer or instrument itself. An Open-End Fund is a mutual fund that issues shares and invests in a portfolio of assets, not a government debt obligation. A Credit Bureau is a company that collects and reports credit information, not a debt security.