Many Savers Are Willing to Accept a Lower Interest Rate

question 32

Multiple Choice

Many savers are willing to accept a lower interest rate on municipal bonds than on comparable instruments because

• A)the after-tax yield on municipal bonds is greater.
• B)municipal bonds invariably have lower default risk.
• C)municipal bonds are more liquid than most other instruments.
• D)the yield on municipal bonds is considered inflation proof.

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Definitions:

Principle of Rights Theory

A framework in ethical theory that posits certain rights are fundamental and must be respected and protected in moral and legal decisions.

Industry Code of Ethics

A set of principles and guidelines designed to help professionals in a specific industry maintain integrity and ethical standards in their work.

National Association of Manufacturers

A leading industrial trade association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states.

Workplace Diversity

Refers to an inclusive work environment that embraces individual differences among employees, such as race, gender, age, religion, and other attributes.