SIE (Securities Industry Essentials) Practice Exam

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Regular way settlement on Treasury bonds is:

Next business day
Two business days
Three business days
Same day

The correct answer is: Next business day

Settlement on Treasury bonds refers to the completion of the transaction between the buyer and the seller, where the buyer makes the payment and the seller delivers the bonds. This process typically takes one business day, which is why option A, "Next business day," is the correct answer. Option B, "Two business days," is incorrect because it suggests that settlement takes longer than it actually does. Option C, "Three business days," is also incorrect for the same reason. Option D, "Same day," is incorrect because the process requires some time for the buyer and seller to complete their respective tasks. Therefore, option A is the most accurate answer.