Question

____ Which of the following statements is NOT true?

1. The four subsystems of the budget execution phase are tax administration, cash management, procurement, and risk management.
2. Government investment planning is important mostly in times of rising revenues and revenue surpluses. It is not important in times of austerity.
3. The primary differences between T-Bills, T-Notes, and T-bond are: lengths of their maturities; and the rates of return.
4. The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded.
5. A derivative is a very complex device that derives its value from the performance of an underlying security or market index.

Answer 1

Government investment planning is is highly important at the times of adverse economic situation because as such situations the revenues are falling and there is a high need for bailout packages so the government investment planning at such moment becomes very critical in order to keep the economy stable.

So statement (B)is completely false which says that government investment planning is important mostly in the times of rising revenues.

Rest of the statements are true as the four subsets of budget execution are truly stated, and money market is about liquidity ,derivative derive their value from an underlying asset, and primary difference between treasury bonds and other bonds is rate of return.

So the answer would be option (B).