Which of the Following Statements Is True

question 269

Multiple Choice

Which of the following statements is true?

• A)Savings was negative for the United States in 2005
• B)In the last two decades,the U.S.savings rate has not exceeded 11 percent
• C)There was a significant decline in the U.S.savings rate since the mid-1980s
• D)A high rate of consumption for a country implies a low savings rate
• E)All of the statements are true

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Definitions:

Financial Assets

Instruments that hold monetary value, such as stocks, bonds, or bank deposits, which can be traded in financial markets.

Term

Refers to a specific period of time or to conditions stipulated for a particular agreement or contract.

Interest Rate

The price, shown in the form of a percentage of the principal, charged by lenders to borrowers for asset employment.

Diversify

The attempt to spread investment risk by selecting a variety of investment options within a portfolio.