When Are Employers That Pay Men and Women Performing the Same

question 128

Multiple Choice

When are employers that pay men and women performing the same jobs different salaries violating the Pay Equity Act?

• A)when the differences are based on incentive plans
• B)when the differences are based on seniority
• C)when the differences are based on merit
• D)when the differences are based on gender

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Definitions:

Expectations Theory

A theory suggesting that long-term interest rates reflect the market's expectation for future short-term rates.

Liquidity Preference Theory

Theory that investors demand a risk premium on long-term bonds. Implies that the forward rate generally will exceed the expected future interest rate.

Treasury Bond

A Treasury bond is a long-term, fixed-interest government debt security with a maturity of 20 to 30 years and pays interest every six months.

STRIPPED Cash Flows

Cash flows that are separated or "stripped" from an asset for investment or valuation purposes, often for the construction of zero-coupon bonds.