The Following Figure Shows the Daily Three-Month Treasury Yield in September

Multiple Choice

The following figure shows the daily three-month treasury yield in September 2008. Refer to the following figure when answering
Figure 10.1: Daily Three-Month Treasury Yield: September 2008 (Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
-Consider the data in Figure 10.1. What does the data for mid-September in this figure suggest?

A) Increasing investor confidence in the effectiveness of TARP led to smaller purchases of U.S. treasuries.
B) There was a rapid movement of assets from treasuries to stocks.
C) In the aftermath of the collapse of Lehman Brothers investors fled to the safety of short-term treasuries.
D) Prices of gold declined in line with short-term treasury yields.
E) GM and Chrysler declared bankruptcy.