Which statement about interest rates is true?
A) The prime rate equals the overnight rate plus 3 percent.
B) Long-run interest rates tend to be higher than short-run interest rates.
C) Short-run bonds tend to be riskier than long-run bonds.
D) Investors require a higher reward for bonds with more liquidity.
E) Long-run interest rates fluctuate more than short-run interest rates.
Correct Answer:
Verified
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A)
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