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Y_Kistochka [10]
3 years ago
12

The chapter opener noted that in​ mid-2016 you could earn an interest rate of​ 0.25% by buying a​ 3-month Treasury bill or an in

terest rate of​ 2.6% by buying​ 30-year Treasury bond. How is the Treasury able to find buyers for​ 3-month Treasury bills when investors could earn an interest rate 10 times as high by buying​ 30-year Treasury​ bonds? A. Treasury discounts the price of​ 3-month Treasury bills to increase yield and demand. B. The​ interest-carry-trade strategy drives the sale of​ 3-month Treasury bills. C. Investors see bonds of different maturities as being perfect substitutes for each other. D. The markets for bonds of different maturities are separate or segmented.
Business
1 answer:
ruslelena [56]3 years ago
5 0

Answer:

The correct option is D,the markets for bonds of different maturities are separate or segmented

Explanation:

Market segmentation theory is of the view that market for short-term and long-term bonds are segmented from each other,wherein investors with different preferences investing in different markets.

Banks for instance are short-term position takers due to their preference for liquidity and would favor investing short-term instruments like the 3-month Treasury bill such that at every point in time, there is enough cash liquidity to meet customers' request for withdrawal of funds.

On the flip side, pension fund administrators take a long-term position on investment, hence would prefer the 30-year Treasury bill since their payment of retirement benefits is usually a low portion of their total contributions received from contributors to their pension funds.

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B. a task analysis

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A task analysis is a detailed analysis to define a set of steps that needed to be taken in order to reach a certain goal. In business , task analysis is conducted by observing the actions of the employees and form a measurement to ensure that the employees is making a desired improvement.

In the example above, Brent's goal is to ensure that Mason will never repeat his mistake in using bad ingredients ever again.

After he defined the goal, he analyze the situation and create a steps that needed to be taken to achieve the goal. That 'step' is putting Mason in an additional training

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3 years ago
Amounts collected by the lender and held in a trust or impound account for future payment are called what?
Aleonysh [2.5K]

The amounts collected by the lender and held in a trust or impound account for future payment are called Reserves.

Reserves are earnings that have been appropriated or set apart, for use for a selected cause in addition down the road. A few examples of specific reserves include capital redemption reserves, contingency reserves, debenture redemption reserves, and dividend equalization reserves. each of these reserves has a particular purpose, but, if important, specific reserves can every so often be used for bills that are not their meant functions.

Reserves may be funded by way of annual working surpluses, or thru a funding plan. These price ranges are considered to be "savings bills" so no fees can be charged without delay to them; the simplest transfer object codes must be utilized to reserve money owed.

A lender is a man or woman, a set (public or non-public), or an economic institution that makes finances available to a person or business with the expectation that the price range could be repaid. Compensation will include the charge of any hobby or costs.

Learn more about economic institutions here brainly.com/question/4230044

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5 0
1 year ago
Human resources is about trying to
Oliga [24]

Answer:

I think b is that the answer

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Which employees may be at risk of losing their jobs when the political party in power changes? Check all that apply.
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