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The Terrorist Attack on the World Trade Center on September

Question 9

Multiple Choice

The terrorist attack on the World Trade Center on September 11, 2001:


A) Triggered a flight to quality in the bond market
B) Caused the demand for U.S. Treasury securities to fall and the demand for corporate bonds to rise
C) Caused the price of U.S. Treasury securities to fall and the yields on corporate bonds to fall
D) Did not have any significant impact since the risk on all bonds increased

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