Which one of the following statements is a correct reflection of the U.S. financial markets for the period 1926-2016?
A) U.S. Treasury bill returns never exceeded a return of 9 percent in any one year.
B) U.S. Treasury bills had an annual return in excess of 10 percent in three or more years.
C) Inflation equaled or exceeded the return on U.S. Treasury bills every year during the period.
D) Long-term government bonds outperformed U.S. Treasury bills every year during the period.
E) National deflation occurred in at least one year during every decade during the period.

Question

Quizplus · Accepted Answer

According to historical data, U.S. Treasury bills had an annual return in excess of 10 percent in three or more years during the period of 1926-2016. Therefore, option B is the correct reflection of the U.S. financial markets. The other options are incorrect, as U.S. Treasury bill returns exceeded 9 percent, inflation did not always exceed the return on U.S. Treasury bills, long-term government bonds did not always outperform U.S. Treasury bills, and national deflation did not occur in every decade during the period.

Which One of the Following Statements Is a Correct Reflection