The Term Structure of Interest Rates Is Also Known as The

question 22

Multiple Choice

The term structure of interest rates is also known as the:

• A) yield to maturity.
• B) probability distribution.
• C) yield differential.
• D) yield curve.

---

Definitions:

Government Expenditures

Financial spending by government agencies on goods, services, and public projects to fulfill their various roles and responsibilities.

Federal Tax Structure

The system by which the U.S. government finances its operations through the imposition of taxes on individuals, corporations, and other entities, including income tax, corporate tax, and sales tax.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income of the taxpayer, showing the percentage of income paid in taxes.

Regressive

Pertaining to a tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income individuals.