If you anticipate that the inflation rate is going to rise from three percent to 10 percent next year, you should
A) save your funds at a fixed rate of interest.
B) borrow funds at a fixed rate of interest.
C) keep your funds in your sock drawer.
D) wait to buy a house until next year.
B
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Economic activity that is above potential output ________
A) signals that potential output is about to increase B) is not possible C) results from an economic shock to which the economy has yet to adjust fully D) occurs near the trough, rather than the peak, of a business cycle E) none of the above
One of the main functions of the Fed is minting U.S. coins
a. True b. False Indicate whether the statement is true or false
Bank failures tend to occur most often during periods of:
A. recessions when many borrowers have a difficult time repaying loans and lending activity slows. B. stock market run ups when, like many companies, banks tend to be overvalued. C. wars and other civil unrest. D. high inflation when the fixed rate loans of many banks cause their real returns to decrease.
The Glass-Steagall Act of 1933:
A. required all state banks to get federal charters. B. required commercial banks to sell off their investment banking operations. C. eliminated the FDIC. D. required federally chartered banks to meet the branching restrictions of the states.