Treasury Bills Have Grown Faster Than the Rate of Inflation

question 240

True/False

Treasury bills have grown faster than the rate of inflation over the period 1957-2005.

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Definitions:

Auction Market

A public market where buyers and sellers participate in the bidding of prices for assets.

Term to Maturity

The remaining time until a debt security, such as a bond, reaches its repayment date at which point the principal is repaid to investors.

Coupon

In finance, a coupon refers to the interest payment received by a bondholder from the bond's issuer at specified intervals.

Market Rate of Return

The average rate of return of investments in the market over a specific period.