The Analysis of the Term Structure of Interest Rates Assumes

question 7

Multiple Choice

The analysis of the term structure of interest rates assumes that​

• A)​there is uncertainty about future interest rates.
• B)​there is no risk involved in the purchase and sale of long­term securities.
• C)​short­term and long­term securities offer the same rate of interest.
• D)​there are no transaction costs.

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Definitions:

Latency Stage

A psychoanalytic term for a period in child development from about age five to puberty during which sexual urges are inactive.

Biological Drives

Innate impulses in living organisms that prompt certain behaviors essential for survival, such as hunger, thirst, and reproduction.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Id

In psychoanalytic theory, the part of the personality that is the source of instinctual impulses and demands immediate satisfaction.