Question

During the credit crisis of 2008, investors around the world were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the United States and several other nations. The demand for US Treasury bonds increased, which led to a rise in their price and a decline in their yields.1. True2. False

Answer 1

true

Step-by-step explanation:

Based on the information provided within the question it can be said that the statement being made is completely true. The credit crisis of 2008 brought with it a lot of doubt and uncertainty of many economic factors of the United States. But as the law of supply and demand still holds, the increase in demand of US Treasury bonds decreased the supply available which in term caused the prices to increase, and an increase in price causes a decline in yields.