Treasury bonds typically have lower coupon rates than corporate bonds because
A. There is a lower risk that the U.S. Treasury will default.
B. The U.S. Treasury does not earn profits.
C. Government regulations keep interest rates on Treasury bonds below market rates.
D. The opportunity cost of purchasing Treasury bonds is lower than the opportunity cost of buying corporate bonds.
Answer: A
You might also like to view...
According to the Keynesian view, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009 would
a. slow the recovery process and result in weak long-term growth of real GDP. b. speed the recovery process and provide the foundation for strong long-term growth of real GDP. c. stimulate a more rapid recovery, but cause the economy to fall back into a recession in the near future. d. slow the recovery process, but provide the foundation for rapid long-term growth of real GDP.
Capital
A. comes from savings. B. can be built up by holding down consumption. C. is one of four economic resources. D. All of the choices are true about capital.
Many Asian countries since the 1980s and 1990s have:
A. supported export-led growth instead of import substitution policies. B. supported import substitution policies instead of export-led growth. C. failed in their attempts at industrial clustering. D. been extremely successful in their attempts at industrial clustering.
If real GDP was 100 in 2015 and 104.4 in 2016, the growth rate of real GDP between 2015 and 2016 was:
A. 2.2 percent. B. 4.4 percent. C. 100 percent. D. 102.2 percent.