Many Savers Are Willing to Accept a Lower Interest Rate

question 32

Multiple Choice

Many savers are willing to accept a lower interest rate on municipal bonds than on comparable instruments because

• A)the after-tax yield on municipal bonds is greater.
• B)municipal bonds invariably have lower default risk.
• C)municipal bonds are more liquid than most other instruments.
• D)the yield on municipal bonds is considered inflation proof.

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Definitions:

Specialists

Professionals who have a high level of expertise and focus on a specific field or area of study.

Generalists

Individuals or entities that have a wide array of skills or knowledge, not limited to a specific area of expertise.

Social Psychology

The scientific study of how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.