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Why do U.S. Treasury bills have lower interest rates than large-denomination negotiable bank CDs?(a) Treasury rates are set by the Federal Reserve at a greater rate than the market-determined CD rate.(b) Treasuries are considered to be risk-free debt instruments.(c) Treasury bills are short-term debt instruments, whereas CDs are medium-term debt instruments.(d) Bank CDs are aected by ination dierently than are Treasury bills.

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