Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) The forward rate for year 1 is the rate on an investment that starts today and is repaid in one year; it is equivalent to an investment in a one-year zero-coupon bond.
• B) The forward rate is only a good predictor of spot interest rates in the future when investors are risk adverse.
• C) We can use the law of one price to calculate the forward rate from the zero-coupon yield curve.
• D) An interest rate forward contract is a contract today that fixes the interest rate for a loan or investment in the future.

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Definitions:

Cerebellar Cortex

The outer layer of the cerebellum in the brain, involved in the regulation and coordination of movement, posture, and balance.

Vagus Nerve

A cranial nerve that innervates major organs, including the heart and digestive tract, playing a crucial role in autonomic functions like heart rate and digestion.

Glossopharyngeal Nerve

The ninth cranial nerve, which is responsible for taste and other functions in the tongue and throat.

Spinal Reflex Arc

A neural pathway that mediates a reflex action involving the spinal cord, consisting of at least one sensory neuron and one motor neuron.