Answer (A) is correct . A Treasury bill is a short-term U.S. government obligation that is sold at a discount from its face value. A Treasury bill is highly liquid and nearly risk-free, and it is often held as a substitute for cash.
Answer (B) is incorrect because It lacks the liquidity necessary to be a cash substitute. It can also be quite a risky investment.
Answer (C) is incorrect because It lacks the liquidity necessary to be a cash substitute. It can also be quite a risky investment.
Answer (D) is incorrect because It lacks the liquidity necessary to be a cash substitute. It can also be quite a risky investment.
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