Which of the Following Statements BEST Describes Why U

question 59

Multiple Choice

Which of the following statements BEST describes why U.S.Treasury securities have always been considered risk-free investments?

• A) They are backed by the U.S. government.
• B) They have a guaranteed rate of return.
• C) They are easily sold.
• D) They are readily available for purchase.
• E) They earn a great profit on the international money market.

Identify the importance of setting a planning horizon and formulating financial policies as part of the strategic financial planning process.

Recognize the limitations of financial planning models and approaches.

Understand the fundamental concepts of operations management.

Analyze productivity and its improvement.

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Definitions:

Nonrivalry

A characteristic of some goods where one person's consumption does not diminish the ability of others to consume the same good.

Nonexcludability

A characteristic of certain goods or services where it is not feasible to exclude individuals from using the good or service, regardless of whether they have paid for it.

Negative Externality

A cost experienced by a third party not involved in the economic transaction, such as pollution affecting residents near a factory.

Spillover Cost

A cost incurred by someone who did not choose to incur that cost.