The Demand for U

Multiple Choice

The demand for U.S. government bonds is high relative to other bond issues because:

A) liquidity of other bond issues is high relative to U.S. government bonds.
B) U.S. bond market has low transaction spreads due to high illiquidity.
C) market for U.S. government bonds is more liquid than most if not all other bond markets.
D) U.S. government bonds have higher default.