Interests Rates

question 80

Multiple Choice

Interests rates

• A) are usually higher on short-term bonds than on long-term bonds.
• B) are usually lower on low-risk bonds and higher on high-risk bonds.
• C) for short-term bonds tend to fall when interest rates for long-term bonds rise.
• D) are usually higher on low-risk bonds and lower on high-risk bonds.
• E) for short-term bonds tend to rise when interest rates for long-term bonds fall.

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Definitions:

Product Mix

The variety of products and services that a company offers to meet different customer needs and preferences.

Manufacturing Margin

Similar to contribution margin but specifically related to manufacturing, it evaluates the difference between manufacturing costs and the sales price of goods.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, indicating the contribution towards covering fixed costs.

Operating Income

Earnings from a company's primary business activities, excluding costs and expenses, interest, and taxes.