Quiz: Understanding Treasury Yield Curves

Test your understanding of treasury securities, yield curves, and risk-free investments as explained in this detailed financial video

Business mixed 8 Questions Video Quiz

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Q1 Beginner 1 pts

According to the video, what are the three main types of treasury securities mentioned? Video Reference:
"What is the difference between treasury bills, treasury notes, and treasury bonds? They're pretty mu..."

Timestamp: 1:00

Treasury bills, treasury notes, and treasury bonds Treasury stocks, treasury bonds, and treasury bills Treasury notes, treasury shares, and treasury bills Treasury bonds, treasury equity, and treasury notes

Q2 Intermediate 2 pts

What specific time duration is associated with Treasury Notes? Video Reference:
"Treasury notes are loans that are from one year to 10 years...."

Timestamp: 1:30

0-1 year 1-10 years Beyond 10 years 1-6 months

Q3 Intermediate 2 pts

According to the video, what was the specific yield rate for 10-year treasury securities on March 14? Video Reference:
"For 10 years, 3.44%...."

Timestamp: 3:00

2.37% 3.44% 4.3% 1.37%

Q4 Beginner 1 pts

Why are treasury securities considered risk-free according to the video? Video Reference:
"Because if you lend to the federal government and they're running short of cash, all they have to do..."

Timestamp: 0:45

Because they're backed by gold reserves Because the government can increase taxes to pay back debt Because they're internationally traded Because they're insured by private banks

Q5 Intermediate 2 pts

The video states that a 6% interest rate on a one-month treasury bill means you receive 6% of your investment after one month. Video Reference:
"When I say that I'm charging 6% interest for that month, that doesn't mean that after a month the pe..."

Timestamp: 2:30

True

False

Q6 Intermediate 2 pts

According to the March 14 data shown in the video, what was the yield rate for 30-year treasury bonds? Video Reference:
"And then for 30 years, I get 4.35%...."

Timestamp: 3:20

4.35% 4.3% 3.44% 2.37%

Q7 Advanced 3 pts

How does the Treasury determine interest rates according to the video? Video Reference:
"And they have an auction. And the world, investors from everywhere, they go in... And depending on t..."

Timestamp: 4:10

Through congressional approval Through auction based on investor demand By Federal Reserve mandate By matching inflation rates

Q8 Advanced 3 pts

According to the video, why do longer-term treasury securities typically offer higher interest rates? Video Reference:
"There might be inflation, the dollar might devalue, I might need the cash in a year's time... I migh..."

Timestamp: 3:40

Select all correct answers

Risk of inflation Possibility of needing cash Dollar devaluation risk Missing better investments

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Quiz: Understanding Treasury Yield Curves

According to the video, what are the three main types of treasury securities mentioned? Video Reference: "What is the difference between treasury bills, treasury notes, and treasury bonds? They're pretty mu..." Timestamp: 1:00

What specific time duration is associated with Treasury Notes? Video Reference: "Treasury notes are loans that are from one year to 10 years...." Timestamp: 1:30

According to the video, what was the specific yield rate for 10-year treasury securities on March 14? Video Reference: "For 10 years, 3.44%...." Timestamp: 3:00

Why are treasury securities considered risk-free according to the video? Video Reference: "Because if you lend to the federal government and they're running short of cash, all they have to do..." Timestamp: 0:45

The video states that a 6% interest rate on a one-month treasury bill means you receive 6% of your investment after one month. Video Reference: "When I say that I'm charging 6% interest for that month, that doesn't mean that after a month the pe..." Timestamp: 2:30

According to the March 14 data shown in the video, what was the yield rate for 30-year treasury bonds? Video Reference: "And then for 30 years, I get 4.35%...." Timestamp: 3:20

How does the Treasury determine interest rates according to the video? Video Reference: "And they have an auction. And the world, investors from everywhere, they go in... And depending on t..." Timestamp: 4:10

According to the video, why do longer-term treasury securities typically offer higher interest rates? Video Reference: "There might be inflation, the dollar might devalue, I might need the cash in a year's time... I migh..." Timestamp: 3:40