You Read in the Financial Mail That 30-Day T-Bills Currently

question 29

Multiple Choice

You read in The Financial Mail that 30-day T-bills currently are yielding 8 percent.Your brother-in-law, a broker at Khumalo Securities, has given you the following estimates of current interest rate premiums: Based on these data, the real risk-free rate of return is

• A) 0%
• B) 1%
• C) 2%
• D) 3%
• E) 4%

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Definitions:

Police Power

The ability of a state to control behavior and ensure lawfulness within its territory to improve the health, safety, ethics, and overall well-being of its citizens.

Habeas Corpus

A legal principle that protects an individual from being unlawfully detained, allowing them to seek a judicial hearing to challenge the legality of their detention or imprisonment.

Dangerous

Characteristic of something that poses a risk or threat to safety, health, or well-being.

Olmstead v. L.C.

A landmark United States Supreme Court decision that found unjustified segregation of persons with disabilities constitutes discrimination in violation of title II of the Americans with Disabilities Act.