During the financial crisis of 2007-09,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 2007-09, investors sought safe-haven assets, leading to a rise in demand for U.S. Treasury securities, causing their prices to rise. At the same time, the prices of riskier investments, such as corporate bonds, declined. Thus, option A is the correct answer.

During the Financial Crisis of 2007-09,the Prices of U