Differences in ________ Explain Why Interest Rates on Treasury Securities

question 100

Multiple Choice

Differences in ________ explain why interest rates on Treasury securities are not all the same.

• A)risk
• B)liquidity
• C)time to maturity
• D)tax characteristics

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Definitions:

Face Validity

The extent to which a test appears to measure what it's supposed to measure, making it seem valid at face value.

Concurrent Validity

Concurrent validity is the extent to which test scores or measurements are correlated with other measures or outcomes that are theoretically related and taken at the same time.

Predictive Validity

How well a result from a test or scale forecasts subsequent performance in a connected area.

Face Validity

The degree to which a test or measure appears effectively to assess what it is supposed to assess, based on casual inspection.