Imagine you work as a financial advisor. Your new client has some spare money, but he does not possess the necessary knowledge about investment. He would like to buy government securities and asks for your recommendation.

1. In your own words, what are some of the risks associated with investing in government securities? What about some of the potential benefits?
2. Briefly describe the various types of securities issued by the United States Treasury and local governments.
3. Which government securities would you advise your client to invest his money in? Explain why you chose that particular security (or securities).