Why do U.S. Treasury bills have lower interest rates than large-denomination negotiable bank CDs? O A. Bank CDs are affected by inflation differently than are Treasury bills. B. Treasuries are considered to be risk-free debt instruments. C. Treasury bills are short-term debt instruments, whereas CDs are medium-term debt instruments. D. Treasury rates are set by the Federal Reserve at a greater rate than the market-determined CD rate.

Why do U.S. Treasury bills have lower interest rates than large-denomination negotiable bank CDs? O A. Bank CDs are affected by inflation differently than are Treasury bills. B. Treasuries are considered to be risk-free debt instruments. C. Treasury bills are short-term debt instruments, whereas CDs are medium-term debt instruments. D. Treasury rates are set by the Federal Reserve at a greater rate than the market-determined CD rate.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: The Federal Reserve System

Section: Chapter Questions

Problem 6WNG

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