Suppose that savers become much more willing to purchase a certain type of municipal bond. The result will be that the bond's price will
A) fall relative to the price of U.S. Treasury securities but rise relative to the price of corporate bonds.
B) rise relative to the price of U.S. Treasury securities but fall relative to the price of corporate bonds.
C) rise relative to the prices of U.S. Treasury securities and corporate bonds.
D) fall relative to the prices of U.S. Treasury securities and corporate bonds.
C
You might also like to view...
The sensitivity of the change in quantity consumed of one good to a change in the price of a related good is called
A) cross-elasticity. B) substitute elasticity. C) complementary elasticity. D) price elasticity of demand.
The writing of a $1,000 check that is drawn on Bank A and deposited in Bank B
A. increases the money supply initially by $1,000. B. reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount. C. reduces the required reserves of Bank A by $1,000 and increases the required reserves of Bank B by the same amount. D. reduces the excess reserves of Bank A by $1,000 and increases the excess reserves of Bank B by the same amount.
Which of the following are problems with the federal budget process?
a. continuing resolutions instead of budget decisions b. lengthy budget process c. uncontrollable budget items d. all of the above are problems with the budget process
You are considering buying a share of stock in XYZ Corporation. At the end of years 1, 2, and 3 the stock will pay you a dividend of $15 . In addition, at the end of the third year you expect to sell the share of stock for $100 . If the interest rate is 3%, how much is the share of XYZ stock worth to you today?
a. $123.14 b. $133.94 c. $137.96 d. $145.00