The Differences Between Interest Rates on US Domestic Certificates of Deposit,Treasury

question 3

Multiple Choice

The differences between interest rates on US domestic Certificates of Deposit,Treasury bills,Commercial Paper,Eurodollar Certificates of Deposit,and Fed funds

• A)tend to persist when rates are rising,but not when rates are falling
• B)tend to persist when rates are falling,but not when rates are rising
• C)are not persistent when rate are rising or falling- hence,these instruments are not close substitutes for the short-term investments manager
• D)are persistent when rates are rising or falling - hence,these instruments are close substitutes for the short-term investments manager

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Definitions:

Critical Incident Stress Debriefing (CISD)

A structured process for helping individuals who have experienced a traumatic event to discuss their experiences and feelings, aimed at reducing the risk of post-traumatic stress disorder.

Stress Debriefing

A process of psychological intervention shortly after a traumatic event aimed at preventing stress-related symptoms and disorders.

Irrational Beliefs

Thoughts and beliefs that are not based on reason or logical thinking, often leading to negative emotional outcomes.

Cognitive

Relating to mental processes such as awareness, perception, reasoning, and judgment.