CHAPTER 14
Treasuries Are a Treasure 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“Everybody wants to eat at the government’s table, but nobody wants to do the dishes.”
Do I Need to Read This Chapter? • Am I seeking a safe, secure, short-term investment, perhaps as an alternative to a CD? • Am I aware of the different ways to buy Treasury obligations, including at my bank? • Would I benefit from direct deposit of interest, discount, and principal payments generated by my Treasury investments? • Are Treasury bills right for me? • How about Treasury notes, bonds, and TIPS? he U.S. Treasury Department has one of the biggest jobs imaginable— providing money for the enormous financial needs of the federal government. No wonder that the laws that are created are called “bills.” Much of the money the Treasury raises comes from the sale of securities to the general public and institutional investors. These securities are known as Treasury obligations and consist of Treasury bills, notes, and bonds.
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In a low-interest economy, many people move away from their traditional certificates of deposit and switch to other investments. If you want a shortterm investment, safe and secure, look at the alternative to the CD, the Treasury bill, and its longer-term brother and sister, the Treasury note and bond.
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