A fall in the discount rate will usually encourage banks to borrow from the Fed and therefore reduce the money supply
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Javier has been thinking about purchasing a bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the
A) money balance demand for money. B) precautionary demand for money. C) transactions demand for money. D) asset demand for money.
In a fixed exchange rate system, an increase in the exchange rate at which a currency is pegged is called a(n)
A) devaluation. B) revaluation. C) depreciation. D) appreciation.
The duration of a coupon bond increases
A) the longer is the bond's term to maturity. B) when interest rates increase. C) the higher the coupon rate on the bond. D) the higher the bond price.
For which of the following goods is the marginal benefit of search likely to be greatest?
a. a pair of shoes b. an automobile c. a jar of honey d. a loaf of bread e. a pair of jeans