Question

True/False

Indicate whether the statement is true or false. and explain why you chose the answer

____   1.   Foreign ownership of US debt is a dangerous thing as this will allow other countries to dictate US policy.

____   2.   Longer-term bonds in general have higher interest rates than shorter-term bonds, everything else held equal.

____   3.   In general, assets that are more liquid command a higher rate of return.

____   4.   Bondholders are more risk-averse (afraid of risk) than stockholders of a firm, everything else held equal.

____   5.   A country that sees an overall decline in the health of its citizens, perhaps because of obesity or lack of access to quality care, will see a fall in economic growth.

 



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