If a Significant Change Is Noted in the Yield of a T-Bill

question 58

Multiple Choice

If a significant change is noted in the yield of a T-bill, the change is most likely attributable to a

• A) downturn in the economy.
• B) static economy.
• C) change in the expected rate of inflation.
• D) change in the real rate of interest.
• E) change in risk aversion.

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Definitions:

Irrational Fear

An excessive and unreasonable fear response to a specific object, situation, or activity.

Object

In general terms, refers to any tangible or intangible entity; in psychology, it can also refer to a target of attention, thought, or affection.

Phobics

Refers to individuals who suffer from phobias, extreme or irrational fears of specific situations, objects, or activities.

Intelligence

The ability to learn from one’s experiences, acquire knowledge, and use resources effectively in adapting to new situations or solving problems.