One-year Treasury bills currently earn 3.75 percent. You expect that one year from now, one-year Treasury bill rates will increase to 4.15 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities

3.95 %

Explanation:

This can be calculated mathematically as follows;

The current rate on two year T Security = ((1 + R1) * (1 + R2))^0.5 -1

In the question, R1 = 3.75 and R2 = 4.15

We plug both in the equation above;

((1+3.75%) * (1+4.15%))^0.5 - 1

(1.0375 * 1.0415)^0.5 - 1 = 1.0395 - 1 = 0.0395 or simply 3.95%

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.