The spread between the interest rates on bonds with default risk and default-free bonds is called the
A) risk premium.
B) junk margin.
C) bond margin.
D) default premium.
A
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Expected real interest rates are the
A) interest rates quoted in the market plus the expected inflation rate. B) interest rates quoted in the market. C) expectations of future interest rates. D) interest rates quoted in the market minus the expected inflation rate.
What are the arguments against the redistribution of income?
What will be an ideal response?
The tools of "game theory" are most helpful to economists in markets characterized by: a. perfect competition
b. oligopoly. c. monopolistic competition. d. monopoly.
The federal funds rate is the interest rate:
a. U.S. financial institutions pay to their best (i.e., largest) depositors. b. U.S. financial institutions charge their best customers. c. On U.S. interbank loans. d. The Federal Reserve changes banks that borrow from it. e. The World Bank charges to central banks.