The prime interest rate is the
A) interest rate on six-month U.S. Treasury bills.
B) discount rate.
C) Federal funds rate.
D) interest rate that banks charge high-quality borrowers.
D
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A subsidy
a. used in an abatement equipment market can achieve an efficient solution if the subsidy is set equal to the MEB at QE b. on pollution reduction activity encourages firms to reduce pollution below a predetermined standard c. on abatement equipment can create bias by changing the relative prices of various abatement technologies d. all of the above e. (a) and (b) only
Which of the following is true? a. In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other. b. Countries with net capital inflows tend to be few or no capital outflows
c. Capital flows will tend to decrease real interest rates in countries with a capital inflow. d. Both a. and c. are correct.
The leverage ratio of an investment firm refers to
a. the ratio of its investment holdings relative to its vault cash. b. the ratio of its investment holdings relative to its capital. c. the percentage of deposits held by the firm relative to its deposits with Federal Reserve banks. d. the percentage of down payments made to the investment firm relative to the size of mortgages issued by the firm.
To say that a price ceiling is binding is to say that the price ceiling
a. results in a shortage. b. is set below the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.