Which of the following is NOT true of the term premium?
A) It is zero under the expectations theory.
B) It is infinite under the segmented markets theory.
C) It increases as a bond's maturity increases.
D) It is zero for thirty-year bonds.
D
Economics
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Financial intermediaries reduce the costs of negotiation by
A) investing in a large number of projects with independent returns. B) gaining expertise in evaluating and monitoring investments. C) investing in a small number of projects with independent returns. D) pooling funds.
Economics
Which of the following best characterizes the current U.S. exchange rate policy?
A. A fixed exchange rate B. A crawling pegged exchange rate C. A freely floating exchange rate D. An adjustable pegged exchange rate
Economics