Of the Portion of Corporate Philanthropy That Goes to Education

question 19

Multiple Choice

Of the portion of corporate philanthropy that goes to education, most of donations go to

• A) executive education programs.
• B) higher education.
• C) K-12 education.
• D) private schools rather than public institutions.

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Definitions:

Forward Interest Rate

A future rate agreed upon for a financial transaction or investment that will be carried out at a later date.

Term Structure

The relationship between interest rates (or bond yields) and different terms (or maturities), typically depicted in a yield curve.

Expectations Theory

A theory suggesting that long-term interest rates reflect the market's expectation for future short-term rates.

Liquidity Preference Theory

Theory that investors demand a risk premium on long-term bonds. Implies that the forward rate generally will exceed the expected future interest rate.