Multiple Choice
The following figure shows the daily three-month treasury yield in September 2008. Refer to the following figure when answering the following questions.
Figure 10.1: Daily Three-Month Treasury Yield: September 2008
-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) General Motors and Chrysler declared bankruptcy.
Correct Answer:

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Correct Answer:
Verified
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