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1. Assets that are not liquid tend to be a Heterogeneous b. Homogenous 2. In-Class Exercise 15: Components of the Interest Rate Which of the

1. Assets that are not liquid tend to be a Heterogeneous b. Homogenous 2. In-Class Exercise 15: Components of the Interest Rate Which of the following contributes to the real riskless interest rate? a. Production opportunities b. Expected inflation Default risk d. Price risk e. Reinvestment risk a. A market-wide rate 6. An asset-specific rate Chapter 3: Components of the Interest Rate 4. Investor and consumers ultimately are concerned with a. Real rates of return b. Nominal rates of return c. Compound rates of return d. Simple rates of return OTS 3. In the expression (Nominal Interest Rate for Given Asset) = (Nominal Riskless Interest Rate) + (Risk Adjustments) The nominal riskless interest rate is Viac 5. Illiquid assets tend to be Heterogeneous with high information costs b. Heterogeneous with low information costs c. Homogeneous with high information costs d. Homogeneous with low information costs CHERSON I DO 6. There are actually many interest rates in the economy. However, we can talk ab

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