The Moon Appears Larger When It Is at the Horizon

question 96

Multiple Choice

The moon appears larger when it is at the horizon than when it is higher in the sky because of

• A) magnification of light rays as they pass through the atmosphere.
• B) the fact that it really is more distant from the Earth at the horizon than when it is higher in the sky.
• C) bending of light rays as they pass through the atmosphere.
• D) an optical illusion.

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Definitions:

Interest Rate Futures

Financial futures contracts that obligate the buyer to purchase an asset (like Treasury bills) with a fixed interest rate at a future date.

Federal Funds

Short-term funds transferred between financial institutions, typically overnight, at an interest rate set by the Federal Reserve in the United States.

Repurchase Agreements

Short-term borrowing for dealers in government securities, where the dealer sells the government securities to investors, usually on an overnight basis, with an agreement to buy them back.

Counterparty

The other organization or party involved in a financial transaction, opposite to the primary party initiating the transaction.