Question

Why Treasury rates are significantly lower as compared to other rates?

A Treasury bills and bonds are purchased by the financial institutions for fulfilling their various regulatory requirements. For the bulk purchase, their prices rise and yields turn low.
B The amount of capital a bank is required to hold in support of investment in treasury bills and bonds is lower as compared to capital to be held for other instruments with very low risk.
C Treasury bonds are considered risk-free assets, meaning there is no risk that the investor will lose their principal
D All of the above
E None of the above
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