Investors May Attempt to Benefit from the Higher Yields on Longer-Term

question 36

Multiple Choice

Investors may attempt to benefit from the higher yields on longer-term securities even though they have only short-term funds to invest by using a strategy called ________ the yield curve.

• A)extending
• B)holding
• C)riding
• D)exploiting

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Definitions:

Cost Driver

A factor that causes a change in the cost of an activity or production process, such as machine hours or labor hours.

Resource Driver

A factor that causes a change in the consumption of resources in the production of a product or service.

Activity Management

The process of planning, controlling, and monitoring resources and tasks to achieve specific business goals.

Overhead Activities

Tasks or operations that incur indirect costs, which are not directly attributable to a specific product or service.