Draw a graph of a typical Treasury yield curve and discuss why it usually takes that shape.
What will be an ideal response?
The student should draw a normal, upward-sloping yield curve as shown in the text. In explaining why the curve is upward sloping, students should mentioned the liquidity preference theory, which is the notion that long-term bonds have to offer higher yields to attract investors who generally prefer short-term bonds. Students might also comment that an upward sloping yield curve could occur if investors expect rates to rise in the future or if long-term bonds are in shorter supply (relative to demand) than are short-term bonds.
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The exclusionary rule is controversial because it tends to benefit guilty parties by suppressing evidence that is often instrumental in convicting them.
Answer the following statement true (T) or false (F)
Use this information to answer the following question. The selected accounts and balances for Keystone Market appear as follows: Advertising Expense $ 14,000 Common Stock 100,000 Dividends 21,000 Freight-In 7,000 Freight-Out Expense 10,000 Interest Income 24,000 Merchandise Inventory (Jan. 1) 70,000 Merchandise Inventory (Dec. 31) 56,000 Purchases 60,000 Purchases Returns and Allowances 4,000
Rent Expense 9,000 Retained Earnings 40,000 Sales 150,000 Sales Returns and Allowances 19,000 Wages Expense 32,000 The amount of net sales on the income statement would be a. $169,000. b. $144,000. c. $131,000. d. $137,000.
A credit to an asset account means that asset account has been increased
Indicate whether the statement is true or false
The text discusses the topic of compounding over a large number of compounding periods
To illustrate, it shows that $1,000 invested at 8% for 40 years (annual compounding) grows to $21,724. But if you could earn 10% instead of 8%, you would earn ________ more at the end of 40 years. A) $4,431 B) 25 percent C) $23,535 D) $1,250