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CNBC Quizzes

Quiz: Think You Understand Markets? Prove It

Question 3 of 14

Which type of bond is the safest?

  1. U.S. Treasury bond
  2. Municipal bond
  3. Corporate bond
  4. Don't know/Not sure
Correct!

"Treasuries" are issued by the federal government. Unlike corporate or municipal bonds, they are backed by the "full faith and credit" of the U.S. government, which guarantees that interest payments will always be made and the bonds redeemed at maturity.