What is the typical relationship among interest rates on three-month Treasury bills, long-term Treasury bonds, and Baa corporate bonds?
What will be an ideal response?
Answer: The interest rate on three-month T-bills is the lowest because they are very liquid. The interest rate on Baa corporate bonds is the highest because companies have default risk.
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Name and briefly describe the three balance of payments accounts
What will be an ideal response?
Monopolies are characterized by a firm demand curve that is more elastic than the market demand curve.
Answer the following statement true (T) or false (F)
“Households are the principal source of savings. But businesses are the main economic investors.” Briefly explain
What will be an ideal response?
The use of money and credit controls to achieve macroeconomic goals is
A. Monetary policy. B. Supply-side policy. C. Eclectic policy. D. Fiscal policy.