I need help!!! I don't understand this at all, and neither does my history teacher. Please help explain it in a simpler way if possible. Thank you!!!!
question: which of these is not a component of the interest rate on a 30 year us government bond?
A.) Transaction costs of screening and monitoring borrowers
B.) positive rate of time preference
C.) expected inflation rate
D.) General uncertainty about the future.
PLEASE HELP EXPLAIN!!!!!! :)
A.
Government bonds can be purchased by anyone with the money to do so, so there are no screening and monitoring costs.