Interest Rates Spreads Between Long-Term and Short-Term Treasury Bills ________

question 48

Multiple Choice

Interest rates spreads between long-term and short-term Treasury bills ________.

• A)are procyclical
• B)are not a good predictor of recessions
• C)are a lagging indicator
• D)all of the above
• E)none of the above

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Definitions:

Treasury Note

A type of government bond issued by the U.S. Department of the Treasury with intermediate maturities ranging from 1 to 10 years.

Settlement

The process of transferring ownership of securities from the seller to the buyer and the corresponding payment from the buyer to the seller.

Accrued Interest

Interest that has been incurred but not yet paid, often considered in bond pricing and transactions.

Financial Press

Media outlets that provide news, analysis, and commentary on financial and economic subjects, including markets and business trends.