What Is the "Invisible Hand

question 59

Multiple Choice

What is the "invisible hand"?

• A) The idea that government economic planning tends to benefit not only the individual but also all of society.
• B) The principle that most people avoid economic transactions with so-called "outsiders."
• C) The idea that people pursuing their own self-interest actually benefit the public at large.
• D) The notion that the pursuit of profit leads to the exploitation of consumers.

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Definitions:

Premium

The amount paid for an insurance policy, or the extra cost for financial instruments or securities about their nominal or face value.

Duration

A measurement of the sensitivity of the price of a bond or other debt investment to changes in interest rates, typically expressed in years.

Term To Maturity

The length of time until the principal amount of a bond or other debt instrument is due to be repaid.

Yield To Maturity

The total expected return on a bond if held until its maturity date, expressed as an annual rate.