Assess the impact on the bond market of the rise in Internet trading of stocks
What will be an ideal response?
The liquidity of the stock market has been increased by Internet trading of stocks. This increase in the desirability of stocks, all else being equal, results in a shift to the left in the demand curve for bonds, lowering the price and raising the interest rate.
You might also like to view...
Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?
a. housing b. healthcare c. life expectancy d. All of the above.
If this firm produces at its most efficient output level it would produce at about _____ units.
A. 150
B. 200
C. 250
D. 300
Suppose that you borrow $100,000 from the bank to purchase some land and you agree to pay 2 percent interest on the loan. If the loan must be repaid in 12 months and the inflation rate is 3 percent during the year, then
A. you will repay the bank with fewer dollars than the bank initially loaned you. B. you will repay the bank with dollars with less purchasing power than it initially loaned you. C. the bank will receive fewer dollars, because of inflation, than it had initially expected to receive. D. you will repay the bank with dollars with more purchasing power than you initially borrowed.
If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000, what is the unemployment rate?
A. 1.6% B. 3.1% C. 10.6% D. 632%