Western Governors University (WGU) BUS2040 D076 Finance Skills for Managers Practice Exam

The classification that encompasses various debt instruments issued by the U.S. Treasury is Treasury Securities. These securities are issued to raise funds to support government expenditures and are often considered one of the safest investments due to being backed by the full faith and credit of the U.S. government. Treasury Securities include different types, such as Treasury bills (short-term), Treasury notes (mid-term), and Treasury bonds (long-term), each varying in maturity and interest payment structures.

In contrast, municipal securities are debt instruments issued by state and local governments, often tax-exempt, and not directly related to the federal government's debt obligations. Equity securities represent ownership in a corporation and come with ownership rights rather than representing a loan or obligation; they differ fundamentally from debt instruments. Corporate bonds are debt securities issued by corporations to finance their operations, also not involving the federal government’s debt. Therefore, Treasury Securities specifically represent government-issued debt, making it the correct classification in this context.