The Yield on NCDs Is ____ the Yield of Treasury

question 51

Multiple Choice

The yield on NCDs is ____ the yield of Treasury bills of the same maturity. The difference between their yields would be especially large during a ____ period.

• A)higher than; recessionary
• B)higher than; boom economy
• C)less than; boom economy
• D)less than; recessionary

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Definitions:

Predetermined Goal

A specific objective or target set in advance that guides decision-making and strategy formulation.

Decisions at the Margin

Economical decision-making process involving small changes to existing conditions, analyzing the cost and benefit of incremental adjustments.

Additional Costs

Expenses that are not initially accounted for in the budget or pricing but arise during the execution of a project or the production of goods.

Marginal Analysis

Marginal analysis refers to the examination of the benefits and costs of a small (marginal) change in the production, consumption, or allocation of resources.