The demand for U.S. government bonds is high relative to other bond issues because:
A. liquidity of other bond issues is high relative to U.S. government bonds.
B. market for U.S. government bonds is more liquid than most if not all other bond markets.
C. U.S. bond market has low transaction spreads due to high illiquidity.
D. U.S. government bonds have higher default.
Answer: B
You might also like to view...
The problem of having unlimited wants under the constraint of limited resources can describe the problem of:
A. opportunity cost. B. sunk costs. C. scarcity. D. the marginal principle.
International trade permits greater consumption than would be possible from the domestic production alone
a. True b. False Indicate whether the statement is true or false
The Agreement to form a European monetary union was formalized in the Treaty of:
A. Milan. B. Paris. C. Amsterdam. D. Maastricht.
Which event was most important in promoting the belief that the U.S. government should work to ensure economy-wide stability?
A) World War II B) the Civil Rights Movement C) the California Gold Rush D) the Great Depression