Interest rates on banker’s acceptances are low because the risk of default is very low.
举一反三
- In the late 1970s, U.S. nominal interest rates were high and real interest rates were low, but in the late 1990s, U.S. nominal interest rates were low and real interest rates were high.
- Most of the time, the interest rate on Treasury notes is below that on money market securities because of their low default risk.
- The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.
- 13,The price of treasuries rises as interest rates fall, and the opposite is true when interest rates rise. Therefore, the best time to buy treasuries is when interest rates are relatively ______. (high/low)
- ________ were characteristic of the UK economy in relation to other developed economies. A: Low rates of industrial investment B: Low rates of scientific experiment C: Low rates of educational investment D: Low rates of military expenditure