Which of the following statements is FALSE?
A) The plot of the relationship between the investment risk and the interest rate is call the yield curve.
B) Each of the last six recessions in the United States was preceded by a period with an inverted yield curve.
C) The nominal interest rate does not represent the increase in purchasing power that will result from investing.
D) A risk-free cash flow received in two years should be discounted at the two-year interest rate.
A
You might also like to view...
Trade dress is the protection of the "look and feel" of a product, a product's packaging, or a
service establishment. Indicate whether the statement is true or false
The official reserve transactions balance
A) equals the current account balance plus the items in the capital account. B) tells us the net amount of international reserves that must move between central banks in order to finance international transactions. C) has an important impact on the money supply. D) is all of the above.