Which One of the Following Statements Is Correct Concerning U

question 69

Multiple Choice

Which one of the following statements is correct concerning U.S. Treasury bill rates for the period 1800-2010?

• A)T-bill rates never exceeded 10%.
• B)T-bill rates never exceeded T-bond rates.
• C)T-bill rates were lower than 1% for a period of time.
• D)T-bill rates were less volatile than T-bond rates.
• E)T-bill rates were the highest during the World War II years.

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Definitions:

Laissez-Faire

The philosophy that the private economy should function without any government interference.

Classical Theory

An economic theory proposing that free markets can regulate themselves through the relationship of supply and demand without government intervention.

Interest Rate

The percentage charged on a sum of money borrowed or earned on a sum of money invested, typically expressed as an annual percentage rate.

Saving

The portion of income not spent on current consumption but set aside for future use, often put into investments or deposit accounts.