The "term structure of interest rates" represents the competitive cost of funds for the various short-term sources of funds such as Treasury bills, commercial paper, and bank CDs.

Question

Quizplus · Accepted Answer

The "term structure of interest rates," also known as the yield curve, represents the relationship between interest rates (or yields) and the maturities of debt securities, typically government bonds, across different time periods, not just short-term sources of funds.

The "Term Structure of Interest Rates" Represents the Competitive Cost