Which Interest Rate Is Typically the Lowest

question 102

Multiple Choice

Which interest rate is typically the lowest?

• A) 3-month Treasury bills
• B) 2-year Treasury notes
• C) 10-year Treasury bonds
• D) 30-year Treasury bonds

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Definitions:

Time Value Of Money

The idea that money in hand now is more valuable than the same amount in the future because of its ability to generate earnings.

Liquidity Bias

A preference or bias for investments that can be quickly converted into cash without significant loss in value.

Arbitrary Cut-Off

A subjective or chosen without any specific standard or rule, end point or threshold.

Market Rate Of Return

The average rate of return anticipated from an investment based on its risk level, historical market performance, and economic conditions.