In banking, the spread refers to the difference between the
A) interest rate on long-term bonds and the interest rate on short-term bonds.
B) interest rate on car loans and the interest rate on home mortgages.
C) average interest rate earned on assets and the average interest rate paid on liabilities.
D) bid and asked prices on a bond.
C
You might also like to view...
An expenditure schedule that lies below the full employment level of GDP will cause
A. rising prices. B. increasing output. C. falling inventories. D. falling prices.
In the short-run, can a firm stay in the market if its profit is negative?
A. Yes, because it may have contracts requiring it to stay open. B. No, shutting down is the best option when profits are negative. C. No, its investors will require it to shut down if it has negative profits. D. Yes, if operating minimizes its losses.
The net exports effect is the inverse relationship between net exports and the ____ of an economy.
A. potential real GDP B. chain-price deflator C. price level D. consumption spending
If monopolistically competitive firms have some control over their prices, why don’t they set price above average total cost so they will realize an economic profit in the long run?
What will be an ideal response?