Treasury Bills Are Commonly Viewed as Risk-Free Assets Because

question 9

Multiple Choice

Treasury bills are commonly viewed as risk-free assets because

• A) their short-term nature makes their values insensitive to interest rate fluctuations.
• B) the inflation uncertainty over their time to maturity is negligible.
• C) their term to maturity is identical to most investors' desired holding periods.
• D) their short-term nature makes their values insensitive to interest rate fluctuations, and the inflation uncertainty over their time to maturity is negligible.
• E) the inflation uncertainty over their time to maturity is negligible, and their term to maturity is identical to most investors' desired holding periods.

---

Definitions:

Depression

A psychiatric condition marked by a continuous low mood or lack of enthusiasm for activities, leading to substantial disruption in everyday functioning.

Anxiety

A sensation of anxiety or apprehension regarding an unpredictable event.

Infant Bonding

The emotional connection that develops between an infant and their caregivers, crucial for the child's development.

Midwife

A healthcare professional specializing in supporting women during childbirth, providing prenatal and postpartum care.