If a Firm Has a Credit Risk Premium of 3

question 1

Multiple Choice

If a firm has a credit risk premium of 3 percent and the Treasury security rate is 4 percent, the firm will be able to borrow at ________. If the Fed implements a monetary policy that raises the Treasury security rate to 6 percent, the cost of borrowing for the firm will be ________.

• A)7 percent; 10 percent
• B)4 percent;  6 percent
• C)7 percent; 9 percent
• D)1 percent; 3 percent

---

Definitions:

Mild Neurocognitive Disorder

A condition involving modest cognitive decline from a previous level of performance, but not severe enough to interfere with daily activities.

Independent Functioning

The ability of an individual to perform daily activities and fulfill roles without the need for assistance from others.

Percentage

A mathematical concept that represents a number as a fraction of 100, used to describe proportions or ratios.

Elderly

Relating to older adults, typically those aged 65 and above, with specific needs, strengths, and considerations.