According to studies of rates of return,yields on treasury bills approximated the rate of inflation.

Question

Quizplus · Accepted Answer

Treasury bills are considered risk-free investments and therefore the yields on them approximate the rate of inflation, making the real rate of return close to zero. This is because investors are not compensated for taking on risk, unlike other investments that offer potentially higher returns but with greater risk.

According to Studies of Rates of Return,yields on Treasury Bills