Sentences of Imprisonment Longer Than 1 Year Are Typically Served

question 5

Multiple Choice

Sentences of imprisonment longer than 1 year are typically served in any but which of the following?

• A)Local jails
• B)State prisons
• C)Federal prisons
• D)All of the above are regularly used for long-term incarceration.

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Definitions:

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest funds in the broader financial market.

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates.

Zero Coupon Treasury Bond

A government bond that does not pay interest throughout its life and is sold at a discount from the face value.

Reinvestment Rate Risk

The risk that the returns from reinvesting cash flows will be lower than expected due to changes in interest rate.