Which of the following are considered debt investments?
Treasury bills
Stocks
Collectibles
Cars
Is it stocks?
No, stocks are not considered debt investments. Debt investments refer to investments in which an investor loans money to an entity, such as a government or a corporation, in exchange for regular interest payments and the return of the principal amount at maturity. Stocks, on the other hand, represent ownership in a company and do not involve borrowing or lending money.
The correct answer from the options you provided is Treasury bills. Treasury bills, also known as T-bills, are short-term government bonds issued by the U.S. Treasury. They are considered one of the safest forms of investment as they are backed by the U.S. government and have a fixed maturity date, often ranging from a few days to a year. Investors earn interest on T-bills by purchasing them at a discount from their face value and receiving the full face value at maturity.