Congress's First Response to the Unexpected Fall of France in 1940

question 100

Multiple Choice

Congress's first response to the unexpected fall of France in 1940 was to

• A) revoke all the neutrality laws.
• B) expand naval patrols in the Atlantic.
• C) enact a new neutrality law enabling the Allies to buy American war materials on a cash-and-carry basis.
• D) call for the quarantining of aggressor nations.
• E) pass a conscription law.

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Definitions:

Modified Duration

Modified Duration measures the sensitivity of the price of a bond or other debt instrument to a change in interest rates, indicating the percentage change in price for a parallel shift in rates.

Modified Duration

A measure of the sensitivity of a bond's or bond portfolio's price to changes in interest rates, adjusting for the changing yield to maturity.

Market Yield

The current yield of a bond or other fixed-income security, calculated by dividing the annual interest income by the current market price.

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The face value of a bond or stock as stated by the issuer, which is typically the amount repaid at maturity for bonds.