Treasury Bonds Have Provided a Higher Historical Return Than Treasury

question 23

Multiple Choice

Treasury bonds have provided a higher historical return than Treasury bills,which can be attributed to their:

• A) greater default risk.
• B) higher level of specific risk.
• C) greater exposure to interest rate risk.
• D) illiquidity.

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Definitions:

Acronym

A word formed from the initial letters or groups of letters of words in a phrase or series of words, used as an abbreviation (e.g., NASA, scuba).

Hum

A low, steady, continuous sound often produced by machinery, electronic devices, or by a group of similar sounds blending together.

Misinformation Effect Paradigm

A phenomenon in which a person's recall of an event becomes less accurate due to the introduction of misleading information.

Deese-Roediger-McDermott

A phenomenon in cognitive psychology where people falsely remember words related to those they have actually heard.