According to Utilitarian Justice, the Redistribution of Income from the Rich

question 27

Multiple Choice

According to utilitarian justice, the redistribution of income from the rich to the poor causes

• A) the rich to sacrifice a lot and the poor to gain a little.
• B) the marginal utility of both the rich and the poor to increase.
• C) the marginal utility of both the rich and the poor to decrease.
• D) an increase in total utility because of the law of decreasing marginal utility.

Recognize the effects of yield changes on bond prices.

Identify and apply different bond immunization and swap strategies in portfolio management.

Analyze the impact of coupon rate, maturity, and yield to maturity on bond duration and price volatility.

Understand how financial institutions manage interest rate risk through duration matching.

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Definitions:

Author of Misfortune

A term denoting the individual or entity primarily responsible for a harmful event or situation.

Icy Sidewalk

An icy sidewalk is a pavement covered in ice, often posing a hazard due to the increased risk of slipping and falling.

Foreseen Risk

A foreseen risk is a potential problem or hazard that has been identified or could be reasonably anticipated in advance, often highlighting the importance of planning or mitigation efforts.

Injury

Physical harm or damage to the body caused by an accident or event.