The Problem in Stretching Out the Maturity of Marketable Securities

question 15

Multiple Choice

The problem in stretching out the maturity of marketable securities is that

• A) you are legally locked in until the maturity date.
• B) longer-term securities always make less interest than shorter-term securities.
• C) there is a greater possibility that the value of the security will drop because of interest rate fluctuations.
• D) interest rates are generally lower over time.

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Definitions:

Values

The importance or worth that people attach to different things, ranging from material goods to principles and ethical standards.

Acres

A measurement unit used primarily in the United States, equal to 43,560 square feet, often used to describe the size of land.

Allocation of Land

The process of distributing land resources among competing uses or users according to certain criteria, policies, or plans.

Taxes

Compulsory financial charges or levies imposed by a government on individuals, businesses, or transactions to fund public services and infrastructure.