US Government Securities Are Used to Construct Yield Curves Because

question 95

Multiple Choice

U.S. government securities are used to construct yield curves because

• A) they are free of default risk.
• B) the large number of maturities form a continuous curve.
• C) they are free of default risk and the large number of maturities form a continuous curve.
• D) None of the options are correct.

Apply concepts of surplus to evaluate changes in market conditions.

Understand the concept of consumer surplus and how to calculate it.

Comprehend the relationship between market price, consumer willingness to pay, and consumer surplus.

Interpret graphical representations of market demand and consumer surplus.

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Definitions:

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