How are Treasury bond prices affected when the interest rate rises?

a. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must decrease.
b. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must increase.
c. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must decrease.
d. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must increase.


a

Economics

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A key reason that most people did not anticipate the severity of the recession of 2007-2009 is that

A) they thought the Fed would reduce the target for the federal funds rate to a lower level. B) they did not believe that the federal government would actually bail out large financial institutions. C) they failed to see the financial crisis coming. D) they were more worried about rising inflation than about falling real GDP.

Economics

Which of the following is correct?

a. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits. b. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits. c. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits. d. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.

Economics

Which of the following is an accurate statement regarding the evolution of the Federal Reserve System?

A) The independence of the Federal Reserve has been systematically eroded by legislation. B) The Federal Reserve has shifted from an agency controlled by the states to a federally controlled agency. C) The Federal Reserve has shifted from a fiscal policy agency to a monetary policy agency. D) The Federal Reserve has shifted from a regional service agency to a national policy-making institution.

Economics

Estimates of the North American Native American population in 1491:

a. range in hundreds of billions. b. range in the hundreds of thousands. c. range in the millions. d. range in the tens of thousands.

Economics