A Dealer Purchased a Parcel of Bank-Accepted Bills at a Yield

question 19

Multiple Choice

A dealer purchased a parcel of bank-accepted bills at a yield of 4.7% p.a., and sold the parcel a few weeks later at a yield of 4.5% p.a.; the dealer's holding-period yield (per annum) would be:

• A)exactly 4.5%
• B)exactly 4.7%
• C)between 4.5% and 4.7%
• D)less than 4.5%
• E)more than 4.7%.

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Definitions:

Prejudices

Preconceived opinions that are not based on reason or actual experience.

Scapegoat Theory

A psychological concept where individuals or groups are unfairly blamed for problems or negative outcomes, often diverting attention from the real causes.

Negative View

An attitude or perspective that emphasizes the bad or undesirable aspects of something.

Stereotypes

Commonly accepted yet inflexible and simplistic perceptions or notions about a specific kind of individual or object.