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Question
In the 1950s the interest rate on three-month Treasury bills fluctuated between 1.0% and 3.5%. In the 1980s, the three-month Treasury bill rate ranged from 5% to over 15%. From this one could predict that in the 1980s interest-rate risk was _________ and the demand for financial innovation was _________.A)greater; lower
B)greater; greater
C)lower; lower
D)lower; greater
Answer
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