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

---

Definitions:

Counting Method

A mathematical technique used to determine the total number of possible outcomes in a given situation.

Count And Divide

A method involving enumeration and separation into parts or groups, typically used for analytical or problem-solving purposes.

Intuitive Judgment

The ability to understand or know something without the need for conscious reasoning or direct evidence.

Bias

A tendency to favor or lean towards a particular perspective, judgment, or result over others, often in a way considered to be unfair.