Bonds Cannot Have Yields Below the Effective Lower Bound Because

question 90

Multiple Choice

Bonds cannot have yields below the effective lower bound because:

• A) the U.S. treasury guarantees all bonds to have a positive yield.
• B) the banking technology does not exist to deal with negative yields.
• C) people can always hold cash.
• D) all of the answers given are correct.

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Definitions:

Evaluate

To ascertain or determine the value or amount of; to judge or assess.

Human Memory Model

A framework describing how memory processes information, including stages like encoding, storage, and retrieval.

Average Score

The sum of all scores divided by the number of scores, used to determine a central or typical value in a set of data.

Months

Units of time, approximately 30 to 31 days in length, used to measure durations and organize the calendar year.