Which one of the following statements is correct concerning U.S.Treasury bill rates for the period 1800-2010?
A) T-bill rates never exceeded 10 percent.
B) T-bill rates never exceeded T-bond rates.
C) T-bill rates were lower than 1 percent for a period of time.
D) T-bill rates were less volatile than T-bond rates.
E) T-bill rates were the highest during the World War II years of the 1940's.

Question

Quizplus · Accepted Answer

T-bill rates were actually lower than 1 percent for a significant period of time in the late 1940s and early 1950s, and have also been very low during periods of economic recession and low inflation throughout the 20th century. The other statements are incorrect - T-bill rates have exceeded 10 percent at various points in history (such as the early 1980s), T-bond rates have often been higher than T-bill rates, T-bond rates usually have higher volatility than T-bill rates, and T-bill rates were not highest during World War II.

Which One of the Following Statements Is Correct Concerning U