The cost of debt money is _____.

Answer

dividends

interest

depreciation

none of the above

A premium on a security if that security cannot be converted to cash on short notice and at close to its "fair market value" is a(n) _____.

Answer

normal premium

liquidity premium

maturity risk premium

reinvestment rate risk

The risk that a decline in interest rates will lead to lower income when funds are reinvested is a(n) _____.

Answer

A. interest rate premium

B. liquidity premium

C. variable risk premium

D. reinvestment rate risk

When long-term interest rates are higher than short-term interest rates, the yield curve is said to be _____.

Answer

inverted

humped

normal

rather strange

Factors affecting the cost of money include _____.

Answer

		A. risk
		B. inflation
		C. the moon's gravitational pull
		all of the above
		both A. and B.