Investors May Be Willing to Invest in U

question 107

Multiple Choice

Investors may be willing to invest in U.S Treasury Bills trading with a negative yield because:

• A)The risk of holding cash in a financial institution is greater than the short-term loss from the investment in T-Bill
• B)Alternative investments with a positive yield are not available.
• C)Financial institutions are refusing to accept cash deposits from legitimate investors.
• D)Losses generated create a significant tax savings for the investor.
• E)The phenomenon indicates there is confidence that an economic upturn is imminent.

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Definitions:

Social Learning Theory

A theory of learning and social behavior which proposes that new behaviors can be acquired by observing and imitating others.

Cognitive Dissonance Theory

A theory proposing that people have a motivational drive to reduce dissonance by changing their attitudes, beliefs, or behaviors, or by rationalizing or justifying them.

Ethical Issues

Moral challenges facing individuals or organizations, often involving decisions about right and wrong behavior in complex and varying contexts.

Evaluation Stage

A phase in various processes where the outcomes or conditions are assessed to make judgments about value, quality, or importance.