What is a primary reason for the yield on 3-month Treasury bills being low during recessions?
A) low risk premium
B) the Fed pushing short-term interest rates down
C) rising inflation
D) the inversion of the yield curve

Question

Quizplus · Accepted Answer

During recessions, the Federal Reserve typically pushes short-term interest rates down in order to stimulate economic growth. This causes the yield on 3-month Treasury bills to be low.

What Is a Primary Reason for the Yield on 3-Month