7. The real rate of interest is 3%; A) the expected inflation rate is 4% and the nominal risk-free rate is 3% B) the expected inflation rate is 3% and the nominal risk-free rate is 6% C) the expected inflation rate is 6% and the nominal risk-free rate is 3% D) the expected inflation rate is 2% and the nominal risk-free rate is 2% 8. Which of the following best describes the nominal risk-free interest rate? A) the sum of the inflation, maturity, default, and liquidity premium B) the inflation premium plus the real rate C) equal to the real rate of interest minus the sum of the inflation, maturity, defarul and liquidity premiums the real rate of interest minus the inflation premium D) 9. An example of a capital market security would be: A) commercial paper B) a bond C) a banker's acceptance D) a Treasury bill 10. Money market securities include: A) negotiable certificates of deposit B) commercial paper C) Treasury bills D) All of the above 11. The income statement: details the firm's assets and liabilities over a period of time. A) B) is a financial statement that summarizes a firm's revenues and expe particular point in time is a financial statement that shows the firm's financial position at a in time. is a financial statement that summarizes a firm's revenues and exy period of time. C) D)