menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Money Banking
  4. Exam
    Exam 5: The Risk Structure and Term Structure of Interest Rates
  5. Question
    What Is a Primary Reason for the Yield on 3-Month
Solved

What Is a Primary Reason for the Yield on 3-Month

Question 18

Question 18

Multiple Choice

What is a primary reason for the yield on 3-month Treasury bills being low during recessions?


A) low risk premium
B) the Fed pushing short-term interest rates down
C) rising inflation
D) the inversion of the yield curve

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q13: In late 2008,the average risk premium rose

Q14: In 2016,as investors became more concerned with

Q15: The liquidity premium theory holds that investors<br>A)

Q17: The investment strategy of borrowing at a

Q21: Which of the following statements about junk

Q22: Which of the following is a single

Q23: According to the liquidity premium theory,the yield

Q71: U.S. Treasury securities<br>A)are considered risk free because

Q78: The default risk premium fluctuates mainly<br>A)because bond

Q79: Under the expectations theory, an upward-sloping yield

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines