To Deal with the Problem of Factions, James Madison Proposed

question 53

Multiple Choice

To deal with the problem of factions, James Madison proposed:

• A) controlling them through checks and balances.
• B) controlling them by prohibiting citizens from taking certain actions.
• C) reducing factions by encouraging citizens to have the same interests.
• D) eliminating factions through limits on individual liberties.
• E) eliminating factions through limits on state governments.

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Definitions:

Inflation Premium

The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par.

Yield Curve

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

Normal Yield Curve

A graphical representation that shows interest rates on bonds of different maturities tend to increase the longer the term to maturity, under normal market conditions.