Question

Based on the period of 1926 through 2017 , U.S. Treasury bills have produced annual rates of return that:

a) ranged from -1 percent to +5 percent.
b) have always been positive.
c) never exceeded 6 percent.
d) ranged from -1 percent to +15 percent.
e) were negative only during the Great Depression.

Answer 1

U.S. Treasury bills have always produced positive annual rates of return from 1926 through 2017, showing their stability as an investment option compared to other fluctuating interest rate products like CDs and corporate bonds.

Step-by-step explanation:

Based on the period of 1926 through 2017, U.S. Treasury bills have been a staple investment, regarded for their safety and reliability. Interest rates on U.S. Treasury bills, similar to those on Certificates of Deposit (CDs) and U.S. Treasury Bonds, fluctuate with the business cycle, increasing during expansions and decreasing during recessions. Notably, the annual rates of return have always been positive, not succumbing to negative figures during periods of economic downturn, including the Great Depression, which aligns with option b) of the provided choices. Furthermore, while other forms of savings such as CDs and corporate bonds have experienced various levels of interest rates, often influenced by inflation and economic conditions, Treasury bills have maintained a consistent positive return, solidifying their position as a highly regarded low-risk investment option over this historical timeframe.