A flight to quality should result in:
A) The price of U.S. Treasury Securities rising and the price of corporate bonds rising
B) The yield on U.S. Treasury Securities falling and the price of corporate bonds rising
C) The yield on corporate bonds falling and the price of U.S. Treasury Securities rising
D) The yield on U.S. Treasury securities falling and the price of corporate bonds falling

Question

Quizplus · Accepted Answer

During a flight to quality, investors move from riskier assets like corporate bonds to safer ones like U.S. Treasury securities, causing Treasury prices to rise and yields to fall, while corporate bond prices fall.

A Flight to Quality Should Result In