Which one of the following statements is correct concerning U.S. Treasury bill rates for the period 1800 - 2007?
A) T-bill rates never exceeded 10 percent.
B) T-bill rates never exceeded T-bond rates.
C) T-bill rates were lower than 1 percent for a period of time.
D) T-bill rates were less volatile than T-bond rates.
E) T-bill rates were the highest during the World War II years of the 1940's.

Question

Quizplus · Accepted Answer

T-bill rates were lower than 1 percent for a period of time, specifically during the period of financial repression that occurred from the 1940s to the early 1950s. The other statements are incorrect. T-bill rates have exceeded 10 percent at various times throughout history, T-bill rates have occasionally exceeded T-bond rates, T-bill rates have generally been more stable than T-bond rates, and T-bill rates were not necessarily the highest during World War II.

Which One of the Following Statements Is Correct Concerning U