When a central bank intervenes in the ________, their intention is to ________
A) spot market; convey a clear signal to the markets
B) futures market, hide its actions from the markets
C) forward market, hide its actions from the markets
D) swap markets, convey a clear signal to the markets
A
You might also like to view...
Using Taylor's rule, when the equilibrium real federal funds rate is 2 percent, there is no output gap, the actual inflation rate is zero, and the target inflation rate is 2 percent, the nominal federal funds rate should be
A) 0 percent. B) 1 percent. C) 2 percent. D) 3 percent.
Which economic concept does the expression "time is money" reflect?
a. opportunity cost b. specialization c. market exchange d. comparative advantage e. efficiency
Macland is going through a recession, and its government is borrowing 1 billion dollars to increase government spending and stimulate the economy. This has increased the interest rate, decreasing the number of private investors. What is this situation in investments called?
a. crowding out b. expansionary fiscal policy c. liquidity trap d. interest rate appreciation
Excess reserves are the amount by which required reserves exceed actual reserves.
Answer the following statement true (T) or false (F)