Author Question: The borrowing rate for real estate is more than the borrowing rates for autos, boats, and VISA ... (Read 139 times)

Anajune7 · **on:** Jul 10, 2018

The borrowing rate for real estate is more than the borrowing rates for autos, boats, and VISA Reward credit cards.

Indicate whether the statement is true or false.

Question 2

A yield curve constructed using Treasury securities has each of the following components embedded in the nominal interest rates:

A) the real rate, expected inflation and a default risk premium.
B) expected inflation, a default risk premium and a maturity premium.
C) the real rate, expected inflation, and a maturity premium.
D) the real rate, a default risk premium and expected inflation.

rleezy04 · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: FALSE
Explanation: The borrowing rate for real estate is LESS THAN the borrowing rates for autos, boats, and VISA Reward credit cards.

Answer to Question 2

Answer: C