The Two Industries That the Transcontinental Railroads Most Significantly Expanded

question 126

Multiple Choice

The two industries that the transcontinental railroads most significantly expanded were

• A) textiles and fishing.
• B) mining and agriculture.
• C) banking and finance.
• D) shipping and fishing.
• E) electricity and telecommunications.

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Definitions:

TIPS

Treasury Inflation-Protected Securities, which are U.S. government bonds that are indexed to inflation to protect investors from the negative effects of rising prices.

Coupon

The annual interest rate paid by a bond, expressed as a percentage of the face value, or the actual amount paid out to a bondholder annually.

Inflation

The rate at which there's an upward movement in the general price level of goods and services, weakening the purchasing capacity.

Convexity

A measure of the curvature or the degree of the curve in the relationship between bond prices and bond yields, indicating how the duration of a bond changes as the interest rate changes.