Compared to interest rates on long-term U.S. government bonds,interest rates on three-month Treasury bills fluctuate ________ and are ________ on average.
A)more;lower
B)less;lower
C)more;higher
D)less;higher

Question

Quizplus · Accepted Answer

Short-term interest rates tend to fluctuate more due to changes in the Federal Reserve's monetary policy, macroeconomic conditions, and market demand. On the other hand, long-term interest rates are more stable and reflect expectations for future economic growth and inflation. Therefore, the correct answer is A, as short-term interest rates fluctuate more and are typically lower on average than long-term interest rates.

Compared to Interest Rates on Long-Term U