Which of the following equals the current yield on a bond?

A. (Total reserves - required reserves) × the money multiplier.
B. Annual interest payment ÷ current market price of the bond.
C. Required reserve ratio ×total deposits.
D. Total reserves - required reserves.


Answer: B

Economics

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The poverty line is

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Capital flows into a country are particularly high, when:

a. Capital restrictions are minimal and the domestic stock market is not well developed. b. Capital flows only depend on relative real risk-free interest rates. c. Capital restrictions are severe and the domestic stock market is highly developed. d. Capital restrictions are minimal and the domestic stock market is highly developed. e. Capital restrictions are severe and the domestic stock market is not well developed.

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When the transmission mechanism breaks down, macroeconomists call this the

A. debt ceiling. B. crowding in. C. crowding out. D. liquidity trap.

Economics