Which One of the Following Statements Is False

Multiple Choice

Which one of the following statements is false?

A) The U.S.government sells bonds to obtain financing.
B) U) S.government securities carry a decreased risk of default.
C) Interest on U.S.government securities is taxable for federal income tax purposes.
D) Most individual investors that purchase Treasury securities bid competitively.
E) Treasury securities may be purchased directly from banks or brokers.