Which Statement About Interest Rates Is True

question 107

Multiple Choice

Which statement about interest rates is true?

• A) The prime rate equals the overnight rate plus 3 percent.
• B) Long-run interest rates tend to be lower than short-run interest rates.
• C) Short-run bonds tend to be riskier than long-run bonds.
• D) Investors require a higher reward for foregoing more liquidity.
• E) Long-run interest rates fluctuate more than short-run interest rates.

---

Definitions:

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, providing most of the eye's optical power.

Pupil

The adjustable opening in the center of the iris of the eye, through which light enters and is focused on the retina.

Retina

The layer of tissue that is located on the inner surface of the eyeball and contains the sensory receptors for vision.

Sclera

The white, outer layer of the eyeball that provides structure and protection.