Which One of the Following Statements Is Correct Concerning U

question 20

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 percent.
• B) T-bill rates never exceeded T-bond rates.
• C) T-bill rates were lower than 1 percent 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 of the 1940's.

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Definitions:

Quick Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss in value.