Three Factors That Cause Interest Rates Among Different Financial Instruments

question 11

Multiple Choice

Three factors that cause interest rates among different financial instruments to vary are

• A)default risk, expected inflation, and taxability.
• B)default risk, current inflation, and taxability.
• C)default risk, maturity, and taxability.
• D)default risk, expected inflation, and maturity.

---

Definitions:

Varicella Virus

The virus responsible for chickenpox, a contagious disease characterized by an itchy rash and fever.

Posterior Root Ganglia

Clusters of nerve cell bodies (neurons) located in the dorsal root of spinal nerves, playing a crucial role in the transmission of sensory information from the periphery to the spinal cord.

Scabies

A highly contagious skin infestation caused by the mite Sarcoptes scabiei, characterized by intense itching and rash.

Pruritus

The medical term for itching, a common skin condition that can be a symptom of various diseases.