If We Look at the Interest Rates on Three-Month Treasury

question 25

Multiple Choice

If we look at the interest rates on three-month Treasury bills and ten-year government bonds over the last four decades, we can see that

• A)there is no clear pattern
• B)they are both volatile but follow similar patterns
• C)ten-year bonds have always had a lower yield than three-month Treasury bills
• D)interest rates on average were lower in the 1980s than they were after 2000
• E)interest rates were at their highest around 2010

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