Investors may be willing to invest in U.S Treasury Bills trading with a negative yield because:
A) The risk of holding cash in a financial institution is greater than the short-term loss from the investment in T-Bill
B) Alternative investments with a positive yield are not available.
C) Financial institutions are refusing to accept cash deposits from legitimate investors.
D) Losses generated create a significant tax savings for the investor.
E) The phenomenon indicates there is confidence that an economic upturn is imminent.
Correct Answer:
Verified
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