In 1997, the U

Multiple Choice

In 1997, the U.S. Treasury issued inflation-indexed bonds, known as Treasury Inflation Protection Securities (TIPS) . Reasons for doing so include:

A) The Treasury expected a protracted period of high inflation
B) To save the Treasury money
C) So that investors could separate exchange rate risk from interest-rate risk exposure
D) Choices A and B only
E) None of the above