Which of the Following Would Likely Make the Interest Rate

question 122

Multiple Choice

Which of the following would likely make the interest rate on a bond higher than otherwise?

• A)both high credit risk and a long term
• B)high credit risk but not a long term
• C)a long term but not a high credit risk
• D)neither high credit risk nor a long term

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Definitions:

Redistribution Of Wealth

The transfer of income and wealth from some individuals to others through a social mechanism such as taxation, charity, welfare, public services, land reforms, or monetary policies.

Efficiency

The extent to which time or effort is well used for the intended task or purpose, often with the minimum amount of waste, expense, or unnecessary effort.

Equality

An existence of equality, notably in areas of status, rights, and opportunities.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.