When a financial intermediary purchases a nontraded claim of either a business or an individual, its main concern is with
A) interest rate risk.
B) credit risk.
C) reinvestment rate risk.
D) None of the above.
B
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A tariff ranging from 28 percent to 113 percent on Chinese frozen shrimp is an example of
A. a policy protecting American consumers from foreign producers. B. a policy protecting American fisheries from overfishing. C. a policy protecting domestic producers from foreign producers. D. a policy using regulations and taxes to protect American consumers.
If the Fed wishes to reduce nominal interest rates, it must engage in an open market ________ of bonds to ________ the money supply.
A. sale; decrease B. purchase; decrease C. sale; increase D. purchase; increase
The majority of dollars spent by government prior to the Great Depression was spending at the ________. In the post World War II period, two-thirds to three quarters of all dollars spent by government in the United States are spent at the ________
A) state and local levels; federal level B) state and local levels; state level C) federal level; state and local levels D) local level; state level
By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ________ of the good
A) quantity; price; quantity B) quantity; price; price C) price; quantity; price D) price; quantity; quantity