The interest rates paid on Treasury bills ________.
A)go down in booms
B)go up in recessions
C)are a coincident indicator
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Interest rates on Treasury bills do not have a simple, direct relationship with economic booms or recessions, nor are they classified as coincident indicators. Their movements are influenced by a variety of factors including monetary policy, inflation expectations, and overall demand for safe assets, rather than being directly tied to the current state of the economy in a predictable way as options A, B, and C suggest.

The Interest Rates Paid on Treasury Bills ________