AP Army Logistics BOLC Practice Test

Which description best matches the G Fund?

C Fund: High Risk, High Yield; large-medium US companies F Fund: Medium Risk, Medium yield; government corporate, and asset backed bonds G Fund: Low Risk, Low yield: Does not lose money, low return; Government based I Fund: High Risk, High yield international companies

Correct Answer:

G Fund: Low Risk, Low yield: Does not lose money, low return; Government based

Explanation:

The G Fund is all about safety and stability. It is invested in special U.S. Treasury securities designed to protect principal, so you generally won’t lose money if you hold it. Because the fund carries almost no risk from market swings, the return is very modest—low yield compared with stock or international funds. It’s government-based, reflecting its guaranteed backing by the U.S. Treasury. In contrast, options describing stock funds (higher risk, higher potential return), a mix of government, corporate, and asset-backed bonds (moderate risk/return), or international equities (higher risk) don’t fit the G Fund’s safety-first profile. That’s why the description of low risk, low yield, government-based best matches the G Fund.

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