Which of the Following Statements Is Most Correct

question 47

Multiple Choice

Which of the following statements is most correct?

• A) The more highly developed a nation's financial system is,the more likely funds are to flow from savers to borrowers by direct transfers as opposed to through financial intermediaries.
• B) If people in the aggregate have a strong time preference for current consumption as opposed to future consumption,this factor will cause interest rates to be lower than if preferences were more toward future consumption.
• C) If investors expect the rate of inflation to increase in the future,this would tend to cause the current short-term interest rate to be higher than current long-term rates.
• D) The existence of maturity risk premiums is due to the fact that a change in interest rates has more effect on the prices of short-term than long-term bonds.
• E) If a 1-year Treasury bond has a yield of 5 percent,if the expected rate of inflation during the coming year is 3 percent,and if the maturity risk and liquidity premiums on 1-year bonds are zero,then the real risk-free rate r* must be 2 percent.

Discern the purpose and types of networks within public administration and their impact on service delivery.

Grasp the role and implications of public participation in decision-making processes.

Understand the role of technology and innovation in enhancing public service delivery.

Distinguish between the different ways public agencies interact with elected officials and the legislative process.

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Definitions:

Temporary/Permanent

Refers to accounts within accounting practices; temporary accounts are reset each accounting period, while permanent accounts carry their ending balance into the next period.

General Journal Entries

The initial records where all financial transactions of a business are noted, using the double-entry method of accounting.

Account Balance

The amount of money in a financial repository at any given moment, which can include debts owed or credits available.

Financial Statement

Reports that provide detailed information about a company's financial performance and position, including the balance sheet, income statement, and cash flow statement.