During the Period 1987 to 2011,the Average Yield on 3-Month

question 147

Multiple Choice

During the period 1987 to 2011,the average yield on 3-Month U.S.Treasury bills was 3.85%,the average inflation rate was 2.92%,the average yield on 30-year Treasury bonds was 6.14%,and the average return on 30-year AAA-Rated Corporate Bonds was 7.00%.The real risk-free short-term interest rate is

• A)0.90%.
• B)2.13%.
• C)2.97%.
• D)4.76%.

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Definitions:

Common Pleas

A term used to describe a general jurisdiction trial court in some U.S. states.

Subject Matter Jurisdiction

The authority of a court to hear and adjudicate cases of a particular type or cases relating to a specific subject matter.

Exclusive Federal

Pertains to areas of law and regulatory authority that are solely governed by the federal government, without state interference.

Concurrent Federal

The situation where federal laws or actions operate simultaneously with state laws or actions in the same area.