Which of the Following Is Most Likely to Be Considered

question 84

Multiple Choice

Which of the following is most likely to be considered to be a service (rather than a good) ?

• A) Child's toy
• B) Loan from a bank
• C) Light bulb
• D) Car

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Definitions:

Term Structure

The relationship between interest rates or yields of different debt instruments, usually depicted by a yield curve showing various maturities.

Real Rate of Interest

The yield a investor foresees receiving, once inflation adjustments are made.

Term Structure

The term structure represents the relationship between the interest rates and the different maturities of debt securities, often depicted in the form of a yield curve.

Junk Bonds

High-risk and high-yield bonds rated below investment grade by credit rating agencies.