Your friend believes buying Treasury bills will offer protection against rising inflation in comparison to buying stocks or mutual funds because the rate of return on the Treasury bills is known at the time of purchase. Do you agree?

multiple choice

This is false because the rate of inflation may exceed the rate of return on the Treasury bill or note, and it may exceed the rate of return on the stocks and mutual funds.

This is true because the rate of return on the Treasury bills or notes will be positive, whereas the rate of return on the stocks and mutual funds can be negative.

This is false because the rate of return on stocks and mutual funds tends to be higher over longer periods of time than the rate of return on Treasury bills or notes, so this will always be better protection against inflation.

This is true because the rate of return on the Treasury bills and notes is known at the time of purchase and the rate of return on the stocks and mutual funds is not.