Asked by Ashreet Dhiman on May 20, 2024
Verified
Treasury bills have grown faster than the rate of inflation over the last 50 years.
Rate Of Inflation
The magnitude of acceleration in average prices for goods and services, which causes a downfall in the ability to procure.
Treasury Bills
Short-term government securities with maturity periods of one year or less, sold to finance the national debt.
- Comprehend the correlation between the yields of bonds and their durations.
- Acknowledge the fluctuations in inflation through time with respect to assorted investment categories.
Verified Answer
WE
wanyonyi edwineMay 25, 2024
Final Answer :
True
Explanation :
Historically, Treasury bills have offered returns that, on average, have outpaced the rate of inflation over long periods, such as the last 50 years, providing investors with real growth in purchasing power.
Learning Objectives
- Comprehend the correlation between the yields of bonds and their durations.
- Acknowledge the fluctuations in inflation through time with respect to assorted investment categories.