The real rate of interest is composed of a risk-free rate of interest plus the default premium and liquidity premium that reflects the riskiness of the security?
Answer the following statement true (T) or false (F)
False
The real rate of interest is the interest that would exist on default-free U.S. Treasury securities if no inflation were expected. See 5-2: Determinants of Market Interest Rates
You might also like to view...
Under the third law of thermodynamics, energy ceases to exist at a temperature called absolute zero.
Which of the following is not generally required in order to have a valid contract?
A) Mutual assent B) A lawful purpose C) Fairness of the bargain D) Parties who have contractual capacity
Viruses and security attacks have decreased consistently each year.
Answer the following statement true (T) or false (F)
______ is intended to permit others to perform, show, quote, copy, and otherwise distribute portions of the work for certain purposes
A. Reverse engineering B. Personal privacy C. Fair use D. Encryption research