Use the Information for the Question(s)below

question 85

Multiple Choice

Use the information for the question(s) below.
-Why are the interest rates of U.S.Treasury notes less than the interest rates of equivalent corporate bonds?

• A)The U.S.government has a high credit spread.
• B)There is significant risk that the U.S.government will default.
• C)U.S.Treasury securities are widely regarded to be risk-free.
• D)U.S.Treasury securities are generally used to determine interest rates.

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Definitions:

Price

The cash amount presumed, required, or allocated in remuneration for something.

Supply Curve

The supply curve illustrates the relationship between the price of a good or service and the quantity of that good or service that a seller is willing and able to supply.

Demand Curve

An illustrated chart demonstrating how the price of an item correlates with consumer demand for it.

Beef Prices

Beef prices are determined by the market dynamics of supply and demand for beef, influenced by factors like feed costs, consumer demand, and industry regulations.