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  3. 42. in the 1950s the interest rate on three-month

42. In the 1950s the interest rate on three-month Treasury bills fluctuated between 1.o anu...

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42. In the 1950s the interest rate on three-month Treasury bills fluctuated between 1.o anu 3.5%. In the 1980s, the three-month Treasury bill rate ranged from 5% to over 15%. From this one could predict that in the 1980s interest-rate risk was and the demand for financial innovation was (a) greater; lower (b) greater; greater (c) lower; lower (d) lower; greater 43. A firm issuing credit cards earns income from (a) loans it makes to credit card holders. (b) payments made to it by stores on credit card purchases. (c) payments made to it by manufacturers of the products sold in stores on credit card purchases. (d) all of the above. (e) only (a) and (b) of the above

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