What Has Been the Average Annual Nominal Rate of Interest

question 39

Multiple Choice

What has been the average annual nominal rate of interest on Treasury bills over the past
107 years (1900 - 2006) ?

• A) Less than 1%
• B) Between 1% and 2%
• C) Between 2% and 3%
• D) Greater than 3%

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Definitions:

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership.

Blank Endorsement

An endorsement on a financial instrument, like a check, where the signature of the endorser is written but no specific endorsee is named, making it payable to the bearer.

Bearer Paper

Bearer paper refers to negotiable instruments, such as checks or bonds, that entitle payment to whoever holds the document.

Order Paper

A document listing the items to be discussed or brought forward in a parliamentary or formal meeting.