Which option best describes the overall purpose of TSP fund options?

• A. They provide a range from Treasury securities to international stocks
• B. They guarantee returns
• C. They exclude international exposure
• D. They require investment in all five funds

Answer: (A)

The idea being tested is that TSP fund options are meant to give you a spread of investment choices across different asset classes so you can build a diversified portfolio that matches your risk tolerance. Describing the range from Treasury securities to international stocks captures the full spectrum of what’s available: conservative government-backed securities on one end and more growth-oriented international equities on the other. This setup lets you mix funds to balance risk and potential return rather than banking on a guaranteed outcome. It’s also clear why the other statements aren’t accurate: the plans don’t guarantee returns, there is international exposure available through the I Fund, and you’re not required to invest in all five funds—you can select any combination that fits your strategy.