What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A. An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not.
B. A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not.
C. An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker.
D. An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.
Answer: A
You might also like to view...
Economists refer to the ideal combination of the price a firm should charge and the quantity a firm should produce as
A) profit maximization. B) maximized production. C) perfect competition. D) optimus prime.
Salary smoothing, automatic payroll deductions, and early withdrawal penalties are all examples of:
A. mechanisms imposed by companies to extract more from their workers and customers. B. policies that do not fundamentally alter decisions because they do not change the benefits or costs of an action. C. precommitments. D. hardwired heuristics.