Bonds Cannot Have Yields Less Than Zero Because

question 61

Multiple Choice

Bonds cannot have yields less than zero because:

• A)the U.S.treasury guarantees all bonds to have a positive yield.
• B)the banking technology does not exist to deal with negative yields.
• C)people can always hold cash.
• D)all of the answers given are correct.

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Definitions:

Innovation And Vision

The capacity to create novel ideas and the foresight to plan future directions or goals, especially in the context of business or technology.

Vision And Prescient

Describes the ability to have a clear idea about the future or foresee events before they happen.

Prescient And Creativity

The combination of having foresight or anticipation of future events and the ability to produce novel and valuable ideas.

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the personal satisfaction or pleasure derived from the activity, rather than external rewards.