In the 1950s,the Interest Rate on Three-Month Treasury Bills Fluctuated

Multiple Choice

In the 1950s,the interest rate on three-month Treasury bills fluctuated between 1.0% and 3.5%.In the 1980s,the three-month Treasury bill rate ranged from 5% to over 15%.From this,one could predict that in the 1980s interest-rate risk was ________ and the demand for financial innovation was ________.

A) greater; lower
B) greater; greater
C) lower; lower
D) lower; greater