Which of the Following Factors Influence Short-Term Interest Rates on Government

question 108

Multiple Choice

Which of the following factors influence short-term interest rates on government securities?
I. Federal Reserve actions
II. interest rate risk
III. expected future inflation
IV. the real rate of return

• A) I and III only
• B) II and IV only
• C) I, II and IV only
• D) I, III and IV only

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Definitions:

Price Leadership

A form of oligopoly in which one dominant firm sets prices and all the smaller firms in the industry follow its pricing policy.

OPEC Cartel

An organization of oil-producing countries that coordinates and unifies petroleum policies to secure fair and stable prices for petroleum producers.

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intention of driving competitors out of the market, or to prevent new entries.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by limiting the power of large corporations.