Investors Can Use Publicly Available Financial Data to Determine Which

question 32

Multiple Choice

Investors can use publicly available financial data to determine which of the following?I) The shape of the yield curveII) Expected future short-term rates (if liquidity premiums are ignored) III) The direction the Dow indexes are headingIV) The actions to be taken by the Federal Reserve

• A) I and II
• B) I and III
• C) I, II, and III
• D) I, III, and IV
• E) I, II, III, and IV

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Definitions:

Annual Rate

The interest rate for a loan or investment over the span of one year.

Simple Interest

Interest calculated only on the principal amount, not on the interest accrued.

Invested

The maneuver of allocating finances with the aspiration of earning income or profit.

Term

The time period for which a loan or investment is made.