In the 1950s,the Interest Rate on Three-Month Treasury Bills Fluctuated

question 11

Multiple Choice

In the 1950s,the interest rate on three-month Treasury bills fluctuated between 1.0% and 3.5%.In the 1980s,the three-month Treasury bill rate ranged from 5% to over 15%.From this,one could predict that in the 1980s interest-rate risk was ________ and the demand for financial innovation was ________.

• A) greater; lower
• B) greater; greater
• C) lower; lower
• D) lower; greater

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Definitions:

Saturation

In color theory, saturation refers to the intensity or purity of a color; in psychology, it can relate to the degree of intensity of a feeling or experience.

Brightness

The perception of how luminous or vivid a light source appears to an observer, which can vary greatly under different conditions of illumination and viewing.

Additive Mix

A color mixing method that involves combining different colors of light, leading to increased brightness.

Retina

The light-sensitive layer at the back of the eye, containing cells that convert light into neural signals.