What Is Meant by the Real Risk-Free Rate of Interest

question 37

Multiple Choice

What is meant by the real risk-free rate of interest? It is the:

• A) opportunity cost of foregoing consumption.
• B) rate actually used in the market, not in textbooks.
• C) rate quoted on long-term Treasury bonds.
• D) the nominal risk-free rate, multiplied by 1 minus the marginal tax rate.

---

Definitions:

Hmos

Health Maintenance Organizations, a type of health insurance plan that provides healthcare services to members through a network of doctors, hospitals, and other healthcare providers.

1998 General Social Survey

An annual survey conducted in the United States to collect data on demographic characteristics, behaviors, attitudes, and opinions of the American population.

Quality Of Medical Care

The degree to which health care services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge.

Illness And Death

Refers to the physical sickness that can lead to the cessation of life.