Which of the following statements is true?
A. Bond prices and the interest rate are inversely related
B. A lower interest rate raises the opportunity cost of holding money
C. The supply of money is directly related to the interest rate
D. The total demand for money is directly related to the interest rate
A. Bond prices and the interest rate are inversely related
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In the long run, a monopolistically competitive firm's price equals
A) its average total cost and its marginal cost. B) its average total cost but not its marginal cost. C) its marginal cost but not its average total cost. D) neither marginal cost nor its average total cost.
The current worth of a claim on future resources is called:
A. net present value. B. future value. C. present discounted value. D. internal rate of return.
In setting premiums, insurance firms face which of the following problems?
a. It is difficult to assign individuals to the correct demographic group. b. Individuals do not want to pay a high premium if that matches their demographic group. c. Individuals do not always have the same characteristics as their demographic group. d. It is difficult to determine premiums for each demographic group.
A decrease in the demand for dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency.
B) appreciation of the U.S. dollar and appreciation of the foreign currency.
C) depreciation of the U.S. dollar and depreciation of the foreign currency.
D) depreciation of the U.S. dollar and appreciation of the foreign currency.