Which of the Following Statement Completions Is CORRECT? If the Yield

question 38

Multiple Choice

Which of the following statement completions is CORRECT? If the yield curve is upward sloping, then the marketable securities held in a firm's portfolio, assumed to be held for emergencies, should

• A) consist mainly of short-term securities because they pay higher rates.
• B) consist mainly of U.S.Treasury securities to minimize interest rate risk.
• C) consist mainly of short-term securities to minimize interest rate risk.
• D) be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.
• E) consist mainly of long-term securities because they pay higher rates.

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Definitions:

Pueblos

refers to both the indigenous people from the Southwestern United States known for their unique adobe dwellings and to the towns established by these people.

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A monotheistic religion based on the life and teachings of Jesus Christ, its central figure.

New Netherland

A 17th-century colonial province of the Dutch Republic that encompassed parts of modern Northeastern United States, including New York, New Jersey, and Delaware.

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The lawfully recognized personality under which an individual or entity has rights, duties, and is subject to legal actions.