A flight to quality refers to a move by investors:
A) away from bonds towards stocks.
B) towards securities of other countries and away from U.S. Treasuries.
C) towards precious metals and away from U.S. Treasury bonds.
D) away from low-quality bonds towards high-quality bonds.

Question

Quizplus · Accepted Answer

A flight to quality typically refers to a move by investors away from low-quality bonds towards high-quality bonds. This is usually driven by a perception of increased risk in the market or uncertainty about the economy. The move towards high-quality bonds is seen as a safer investment option and can help protect investors from potential losses.

A Flight to Quality Refers to a Move by Investors