The Term Structure of Interest Rates Refers to

question 29

Multiple Choice

The term structure of interest rates refers to

• A)the general observation that the yield on 30-year government bonds is less than the yield on 90-day Treasury bills.
• B)the variance of the different interest rates available in the economy.
• C)the composition of the market interest rate.
• D)the variation of the market interest rate over the span of one year.
• E)the pattern of interest rates that corresponds to the varying terms to maturity of government securities.

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Definitions:

Consistency

The quality of achieving a level of performance or following a pattern of behavior over time, showing reliability and uniformity.

Distinctiveness

A principle in social psychology that explains how individuals highlight and perceive the unique features of a person or an object in comparison to others.

Kelley's Attribution Theory

A psychological theory that explains how individuals infer the causes of their own and others' behavior based on observed evidence and situational factors.

Low Distinctiveness

A concept in attribution theory where an individual's behavior is similar across different situations, leading to internal attributions about the person's characteristics.