The length of time until a bond matures is called the term andbonds that have a longer term tend to have a higher interest ratebecause they are more risky.

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True

False

A higher tax rate on interest income provides an incentive forprivate saving, but a higher interest rate provides a disincentivefor private saving

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True

False

People would desire to borrow more if the nominal rate ofinterest is 6 percent with a corresponding inflation rate of2 percent than if the nominal rate of interest is 5 percent with acorresponding inflation rate of 3 percent.

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True

False

Mutual funds are one type of financial intermediary and theadvantage of mutual funds is that they allow people with smallamounts of money to diversify as well as ??give ordinary peopleaccess to the skills of professional money managers

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True

False

If Congress increased the tax on interest income, saving woulddecrease, interest rates would rise and investment woulddecrease.

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True

False

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The detailed answer for the above question is provided below 1 True 2 False 3 True 4 True 5 False ... View the full answer