In the Last Months Following the Collapse of __________,Interest Rates

question 30

Multiple Choice

In the last months following the collapse of __________,interest rates on commercial paper __________ and access to this form of liquidity __________.

• A)Lehman Brothers;rose by over 5 percent;contracted
• B)Washington Mutual;fell by over 3 percent;expanded
• C)Merrill Lynch;rose by 5 percent;stayed constant
• D)General Motors;rose by over 3 percent;contracted
• E)AIG;stayed constant;remain unchanged

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Definitions:

Lease

A contract for the possession and use of land or other property, including goods, on one side, and a recompense of rent or other income on the other; a conveyance to a person for life, or years, or at will in consideration of a return of rent or other recompense.

Economic Duress

A situation where a party is forced to enter into a contract under severe financial pressure, making the agreement voidable.

Gallium Arsenide

A compound of gallium and arsenic that is used in semiconductor devices, including integrated circuits and photovoltaic cells.

Monopoly

A market structure characterized by a single seller, offering a unique product or service without close substitutes, leading to control over pricing.