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The Demand for U

Question 96

Multiple Choice

The demand for U.S.government bonds is high relative to other bond issues because:


A) The liquidity of other bond issues is high relative to U.S.government bonds
B) The U.S.bond market has low transaction spreads due to high illiquidity
C) The market for U.S.government bonds is more liquid than most if not all other bond markets
D) Of default risk; it has nothing to do with liquidity

Correct Answer:

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