Bonds are often referred to as fixed-income securities because:
A. the price you pay for bonds is fixed.
B. of the set interest rate.
C. they are much more commonly held by retirees.
D. they adjust interest payments with the inflation rate.
Answer: B
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The rate of economic growth will be faster if
A) the rate of growth of the population is higher. B) consumption spending is greater. C) the rate of saving is higher. D) the rate of growth of the money supply is higher.
Fixed costs are
A) a production expense that does not vary with output. B) a production expense that changes with the quantity of output produced. C) equal to total cost divided by the units of output produced. D) the amount by which a firm's cost changes if the firm produces one more unit of output.
As real GDP per year increases along the short-run aggregate supply (SRAS) curve, the SRAS curve
A) becomes increasingly steep. B) begins to level out. C) shifts inward. D) does not change.
In the long run, the total variable cost of a firm:
a. is equal to its total fixed cost. b. is equal to its total cost. c. is equal to its average fixed cost. d. is more than its total fixed cost. e. is less than its total cost.