LIBOR Is Generally ________ the Fed Funds Rate Because Foreign

question 60

Multiple Choice

LIBOR is generally ________ the Fed funds rate because foreign bank deposits are generally ________ than domestic bank deposits.

• A)greater than; less risky
• B)less than; more risky
• C)the same as; equally risk
• D)greater than; more risky
• E)less than; less risky

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Definitions:

Certainty Effect

The tendency of people to overweight outcomes that are certain relative to outcomes which are only probable.

Incremental Theorist

An Incremental Theorist believes that personal qualities, such as intelligence and ability, can be developed over time through effort and perseverance.

Entity Theorist

An individual who believes that personal qualities such as intelligence or talent are fixed traits and not significantly changeable over time.

Immediate Success

The rapid achievement of a goal or attainment of positive results shortly after efforts are made.