The risk-free rate is usually approximated by interest rates on U.S. government debt, because the US government:
A. is considered extremely unlikely to default.
B. sets all policy concerning interest rates.
C. backs all loans secured with that rate.
D. will never default on a loan that it makes.
A. is considered extremely unlikely to default.
You might also like to view...
The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.2. Bank deposits are equal to
A) $1.6 million. B) $2 million. C) $4 million. D) $8 million.
An efficient tax system is one that imposes small deadweight losses and small administrative burdens
a. True b. False Indicate whether the statement is true or false
Suppose that wage contracts between workers and employers are based on an expected inflation rate of 3 percent and a 5 percent increase in money wages is agreed upon. If inflation actually equals 7 percent, real wages
What will be an ideal response?
What is the human resource problem in DVC?
What will be an ideal response?