Compared to Interest Rates on Long-Term U

question 26

Multiple Choice

Compared to interest rates on long-term U.S. government bonds,interest rates on three-month Treasury bills fluctuate ________ and are ________ on average.

• A)more;lower
• B)less;lower
• C)more;higher
• D)less;higher

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Definitions:

Board Of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Stock Warrants

Financial instruments that give the holder the right, but not the obligation, to buy shares of a company at a specified price before the warrant expires.

Redeemed

Refers to the process of exchanging a financial instrument, such as a bond or coupon, for its cash value or for another specified benefit.

Specified Price

The agreed-upon price for goods or services stipulated in a contract.