During the financial crisis of 2008,the prices of U.S.Treasury securities
A) rose and the price of corporate bonds declined.
B) fell relative to the prices of corporate bonds.
C) remained in the same relative position to the prices of corporate bonds.
D) were frozen by order of the federal government.

Question

Quizplus · Accepted Answer

During the financial crisis of 2008, investors sought safety and turned to U.S. Treasury securities, driving up their prices. Meanwhile, corporate bonds faced increased default risk and their prices declined. This resulted in a relative rise in the prices of U.S. Treasury securities and a decline in the prices of corporate bonds, making choice A the correct answer.

During the Financial Crisis of 2008,the Prices of U