Which Statement About Interest Rates Is False

question 184

Multiple Choice

Which statement about interest rates is false?

• A) The prime rate equals the overnight rate plus 2 percent.
• B) Long-run interest rates tend to be higher than short-run interest rates.
• C) Long-run bonds tend to be riskier than short-run bonds.
• D) Investors require a higher reward for bonds with more liquidity.
• E) Long-run interest rates fluctuate less than short-run interest rates.

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Definitions:

Stent

A tube or other device inserted into a blocked passageway to keep it open, frequently used in arteries to prevent or relieve a blockage.

Blockage

Blockage refers to the obstruction or closing off of a passage or vessel, impeding or stopping the flow within it.

Cardiovascular Disease

A general term for conditions affecting the heart and blood vessels, such as coronary artery disease, heart attacks, and stroke.

Hypertension

Form of cardiovascular disease characterized by blood pressure over 140/95 (over 45 years of age) or 130/90 (under 45 years of age).