Term Spread Is the Interest Rate on a Long-Term Debt

question 5

Multiple Choice

Term spread is the interest rate on a long-term debt security_____the interest rate on a short-term debt security.

• A)minus
• B)plus
• C)times
• D)divided by the interest rate on a short-term debt

---

Definitions:

Proctor & Gamble

A multinational corporation specializing in consumer goods ranging from personal care to cleaning products.

Family Farm

A farm owned and operated by a family, typically involving residential family members in its operations.

Barriers To Entry

Factors that make it difficult for new competitors to enter an industry, often protecting existing companies from competition.

Demand Curves

A graphical representation used in economics to show the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.