________ Refers to Tying Rewards to Profits or Cost Savings

question 21

Multiple Choice

________ refers to tying rewards to profits or cost savings achieved by meeting specific goals.

• A) Gain sharing
• B) Employee benefits
• C) Wellness program
• D) Sliding-scale plan
• E) Cafeteria plan

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Definitions:

Yield Curve

A graphical representation of the interest rates on debts for a range of maturities, showing the relationship between interest rates and the term of the debt.

Expectations Theory

A theory suggesting that the interest rates on long-term bonds will reflect expected future short-term rates.

Forward Rates

The interest rates implied by current zero-coupon bond prices for periods in the future.

Future Short Interest Rate

An estimation or prediction of the interest rates at a future point in time, often used in the valuation of interest rate derivatives.