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.

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Definitions:

Fate Map

Diagram used by developmental geneticists that tracks the differentiation of a cell in an embryo.

Cytoplasmic Segregation

The uneven distribution of cytoplasmic contents, such as organelles and cytoplasmic determinants, during cell division.

Homeobox

A DNA sequence found within genes that are involved in the regulation of patterns of anatomical development.

Pattern Formation

Positioning of cells during development that determines the final shape of an organism.