A Legal System That Provides Secure Private Property Rights and Unbiased

question 236

Multiple Choice

A legal system that provides secure private property rights and unbiased enforcement of contracts

• A) is unnecessary for the smooth operation of markets.
• B) reduces the efficiency of markets.
• C) enhances the efficiency of markets.
• D) makes it easier for sellers to cheat or defraud consumers.

---

Definitions:

Yield Curve

The yield curve is a graph showing the relationship between interest rates (or yields) of bonds having different maturities but the same credit quality, typically illustrating the term structure of interest rates.

Debt Market

A market where debt instruments, including bonds, notes, and bills, are issued and traded, providing entities a way to raise capital through borrowing.

Treasury Note

A medium-term government debt security with fixed interest rates and maturities typically ranging from 1 to 10 years.

Default Risk

The possibility that a borrower fails to meet the legal obligations or conditions of a debt.