1 What information is primarily conveyed by the U.S. Treasury yield curve? Select all that apply.

Default expectations

Liquidity expectations

Interest rate expectations

Inflation expectations

2. What are the risks of investing in U.S. Treasury bills? Select all that apply.

Interest rate risk

Liquidity risk

Inflation risk

Default risk

3. Why is the 4-week U.S. T-bill yield different from the 10-year U.S. T-note yield? Select all that apply.

Inflation risk differences

Default risk differences

Liquidity risk differences

Interest rate risk differences

4. Why do interest rates spread? Select all that apply.

Inflation risk differences

Default risk differences

Liquidity risk differences

Interest rate risk differences