The length of time until a bond matures is called the

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

Select one:

True

False

A higher tax rate on interest income provides an incentive for
private saving, but a higher interest rate provides a disincentive
for private saving

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True

False

People would desire to borrow more if the nominal rate of
interest is 6 percent with a corresponding inflation rate of 2
percent than if the nominal rate of interest is 5 percent with a
corresponding inflation rate of 3 percent.

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True

False

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

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True

False

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

Select one:

True

False