Which Statement About Interest Rates Is True

question 125

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 bonds with more liquidity.
• E) Long-run interest rates fluctuate less than short-run interest rates.

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Definitions:

Soapberry Bug

A species of beetle that has been widely studied as an example of rapid evolutionary change in response to changes in its environment, specifically in the types of plants it feeds on.

Beaks

The hard, external, projecting jaws of birds, made of keratin, that are adapted to their feeding habits.

Vertically Transmitted Endosymbionts

Microorganisms that are passed from parent organisms to their offspring through the germline, often providing mutual benefits.

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The complete set of genetic material in an organism, including all of its genes and noncoding DNA sequences.