Which of the Following Would Both Make the Interest Rate

question 57

Multiple Choice

Which of the following would both make the interest rate on a bond higher than otherwise?

• A)the interest it pays is taxed and it is long term
• B)the interest it pays is taxed and it is short term
• C)the interest it pays is tax exempt and it is long term
• D)the interest it pays is tax exempt and it is short term

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Definitions:

Interference Theory

A theory suggesting that the ability to remember information is affected by other information learned either previously or subsequently.

Proactive Interference

is a phenomenon where older memories inhibit the ability to remember new information because of the clutter or confusion of old and new information.

Long-Term Memory

A type of memory responsible for the storage of information over an extended period, from days to decades.

Retrieval

The act of accessing and bringing into consciousness information from memory.