Which of the following is considered a default-risk-free instrument?
A) a three-month commercial paper issued by GE
B) a share of stock issued by Google
C) a three-month Treasury bill
D) a ten-year bond issued by Intel
C
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Suppose the world economy is divided into two halves. In Region A, all economies experience a decrease in desired saving, while desired saving is unchanged in Region B
If there is open trade and perfect capital mobility across the two regions, which of the following is true? A) Actual saving in Region B has increased. B) Actual investment in Region A has increased. C) Region A's imports from Region B have decreased. D) all of the above E) none of the above
A government budget deficit will have a:
a. positive effect on public saving causing a rightward shift in the supply of loanable funds. b. positive effect on public saving causing a leftward shift in the supply of loanable funds. c. negative effect on public saving causing a rightward shift in the supply of loanable funds. d. negative effect on public saving causing a leftward shift in the supply of loanable funds.