State and local governments pay a low rate of interest because _____
A) the risk of default is high.
B) they spend on welfare activities.
C) lenders are always willing to lend money to governments rather than financial institutions.
D) lenders focus on their after-tax rate of interest.
E) the administration costs of their loans are very low.
Correct Answer:
Verified
Q76: Exhibit 13.3 Q77: As the duration of a loan increases,_ Q78: Identify the correct statement about the market Q79: As defined by economists,interest is _ Q80: Which of the following statements is true? Q83: The current value of a payment or Q84: Which of the following does not affect Q85: The interest earned on loans to state Q86: If the present value of an investment Q136: The procedure of determining the present value
A)lenders
A)only the
A)Interest
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents