Which of the Following Statements Is CORRECT

question 20

Multiple Choice

Which of the following statements is CORRECT?

• A) The yield on a 2-year corporate bond should always exceed the yield on a 2-year Treasury bond.
• B) The yield on a 3-year corporate bond should always exceed the yield on a 2-year corporate bond.
• C) The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond.
• D) If inflation is expected to increase,then the yield on a 2-year bond should exceed that on a 3-year bond.
• E) The real risk-free rate should increase if people expect inflation to increase.

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Definitions:

Psychological Measures

Tools and techniques used to assess an individual's mental functions and behaviors.

Pretests

Assessments or examinations conducted before a main test or experiment to gauge participants' baseline knowledge, skills, or attitudes.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.