Q473
Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include
A.
tax-ability
B.
covert ability
C.
call ability
D.
inflation premium
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include inflation premium. An inflation premium is the part of prevailing interest rates that results from lenders compensating for expected inflation by pushing nominal interest rates to higher levels.