Which of the following is an example of fixed income securities?

Prepare for the Unit Investment Trust Funds Exam with our comprehensive questions and answers. Study with multiple-choice questions and detailed explanations to ensure success!

Retail treasury bonds are indeed an example of fixed income securities. Fixed income securities are investment instruments that provide returns in the form of regular, fixed payments and the eventual return of principal at maturity. Retail treasury bonds, specifically, are issued by a government to finance its operations, and they typically offer a predefined interest rate paid to investors at regular intervals.

The primary characteristic of fixed income securities, like retail treasury bonds, is their predictable income stream, which is distinct from equities like stocks, which do not guarantee dividends or fixed payments, and mutual funds, which are pooled investments that may include stocks, bonds, or other assets, depending on their investment strategy. Commodities, on the other hand, are physical goods like gold or oil and are not classified as fixed income securities. This highlights the unique role that retail treasury bonds play in the landscape of investment options.

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