Bankers acceptances will tend to have a ____ return and ____ default risk than will Treasury bills.
A) Higher, higher
B) Lower, lower
C) Higher, lower
D) Lower, higher
E) There are rarely differences between the two

Question

Quizplus · Accepted Answer

Bankers acceptances are generally considered to be riskier than Treasury bills because they are not backed by the full faith and credit of the U.S. government. As a result, bankers acceptances typically offer a higher return than Treasury bills to compensate investors for the additional risk.

Bankers Acceptances Will Tend to Have a ____ Return and ____

Bankers Acceptances Will Tend to Have a Return and