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:

Professions

Occupations that require specialized education, training, and skills, often associated with professional licensure.

Earnings Ratio

A ratio that compares different types of earnings or income, often used for analyses like gender wage gaps or industry comparisons.

Earnings Ratio

A financial metric that compares a company's earnings to another value, such as the price of its stock or the earnings of another industry.

Labor Force Participation

The percentage of the population that is working or actively looking for work, excluding those not seeking employment.