The Term Structure of Interest Rates Defines the Relationship

question 48

Multiple Choice

The term structure of interest rates defines the relationship

• A)between risk and return.
• B)between risk and maturity.
• C)between maturity and yield.
• D)between default risk ratings and maturity.

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Definitions:

Gratification

The state of pleasure or satisfaction obtained from achieving a goal or fulfilling a desire.

Freud

An influential figure in psychology, known for his theories of the unconscious mind, the mechanism of repression, and the psychoanalytic model of the mind.

Pleasure Seeking

The pursuit of activities and experiences that are expected to bring joy or satisfaction.

Id's Drives

Basic, instinctual forces or desires that seek immediate gratification, according to Freudian psychoanalytic theory.