1. What are the risks of investing in U.S. Treasury bills? Select all that apply.
2. Interest rate risk
3. Liquidity risk
4. Inflation risk
5. Default risk

0.5 points

QUESTION 2

1. Why do interest rates spread? Select all that apply.
2. Inflation risk differences
3. Default risk differences
4. Liquidity risk differences
5. Interest rate risk differences

0.5 points

QUESTION 3

1. Why is the 4-week U.S. T-bill yield different from the 10-year U.S. T-note yield? Select all that apply.
2. Inflation risk differences
3. Default risk differences
4. Liquidity risk differences
5. Interest rate risk differences

0.5 points

QUESTION 4

1. What information is primarily conveyed by the U.S. Treasury yield curve? Select all that apply.
2. Default expectations
3. Liquidity expectations
4. Interest rate expectations
5. Inflation expectations