Which Is TRUE About Differences in Savings Rates Across Groups

question 80

Multiple Choice

Which is TRUE about differences in savings rates across groups of people?

• A) Older people and higher-income people tend to save less.
• B) Older people and lower-income people tend to save less.
• C) Younger people and higher-income people tend to save less.
• D) Younger people and lower-income people tend to save less.

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Definitions:

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Bond Yields

The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.

Term Structure

The relationship between interest rates (or yields) and different maturities of debt securities, often depicted as a curve.

U.S. Treasuries

Debt securities issued by the U.S. Department of Treasury used to finance government spending as an alternative to taxation.