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.