U.S. Treasury bill is a debt obligation of the United States government that should mature in one year following the date of issue (short-term). T-bills are issued in weekly or monthly auctions, and their high degree of security makes them very attractive.
B is true: Rising prices of goods and services distort the purchasing power of interest income and repaid principal from security or loan. This is known as inflation risk.
C is true: Because they represent a bank’s promise to pay the holder a designated amount of money on a designated future date, bankers’ acceptances are considered to be among the safest of all money market instruments.
D is true: Investment security portfolios help to stabilize income, so that revenues level out over the business cycle—when loan revenues fall, income from investment securities may rise.

Things to Remember

• U.S. Treasury bills are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
• Inflation risk is a key consideration for investors as it can erode the real value of their investments over time.
• Bankers' acceptances are commonly used in international trade transactions to provide a guarantee of payment to the seller.
• Investment securities can include a variety of assets such as stocks, bonds, and mutual funds, and are held by financial institutions to generate income and manage risk.