Homework Answers
As per policy we have to answer first four questions
1) Solution: True
Explanation: The capital market includes trading in stocks and
bonds; and these are long-term assets
2) Solution: True
Explanation: Demand rises, and supplies of bonds also increases,
because firms have more attractive opportunities for the
investment
3) Solution: True
Explanation: The supply and demand analysis helps to determine
interest rates
4) Solution: False
Explanation: The banks are not always illiquid
Add Answer to:
TF 1. Capital market assets are long term debt. T F 2. If the demand for...
T F 5. Included on the FOMC of the FED is the Comptroller of the Currency....
T F 5. Included on the FOMC of the FED is the Comptroller of the Currency. T F 6. The demand for loanable funds is supply of bonds, because generally to get someone will lend you money you give them a promise to repay. T F 7. A discount rate lower than the federal funds or market rate expands the money supply. T F 8. If the excess reserve deposit ratio rises, then the money supply rises . T F...
10. The sources of supply and demand for loanable funds Consider the market for loanable funds...
10. The sources of supply and demand for loanable funds Consider the market for loanable funds in the United States. Which of the following are sources of the supply of loanable funds? Check all that apply. A- A household’s current after-tax income exceeds its utility-maximizing level of consumption. B- Government tax revenues exceed government spending. C- A firm’s profit-maximizing level of expenditures exceeds its profits in the current period. D- A government runs a budget deficit. E- A household’s utility-maximizing...
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of...
7. Suppose that Canada imposes an import quota on automobiles. In the open-economy macroeconomic model, which of the following curves would this quota shift? a. supply of loanable funds left b. demand for loanable funds left c. demand for Canadian dollars right d. supply of Canadian dollars left 8. Suppose the Canadian government imposed import quotas on agricultural products. According to the foreign-currency exchange market diagram, which of the following outcomes would most likely result? a. Both the demand and supply curves...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than...
1. Which of the following is true regarding spending and saving? a. Money that is spent...
1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...
14-19 just answers 14. If wealth increases, the demand for stocks and that of long-term bonds...
14-19 just answers
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases; increases B) increases; decreases C) decreases, decreases D) decreases; increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand...
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held...
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases, increases B) increases, decreases C) decreases; decreases D) decreases, increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand for GE stock...
maricopa edu/courses/1063228/assignment/7513555 3583268 iz: Money and Banking ney and Banking You are on question I of...
maricopa edu/courses/1063228/assignment/7513555 3583268 iz: Money and Banking ney and Banking You are on question I of 13 Choose the BEST answer. All over the globe commodities (eg corn wheat, beans) are priced in United States dollars. This in economic terms, is an example of O units of account O flexible values O store of value C Previous Next > F11 F8 F4 9 earn.maricopa.edu/courses/1063228/assignments/7513555?module item id-13583268 uiz: Money and Banking Money and Banking Progress You are on question 5 of...
1. The interest rate in the federal funds market: a. is an interest rate that is...
1. The interest rate in the federal funds market: a. is an interest rate that is largely unaffected by the policies of the Fed. b. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. c. is determined by the imposition of price controls imposed by the Fed. d. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. 2. If there is a...
dropdown options 1. financial asset physical asset 2. spot market future market 3. capital market, money...
dropdown options
1. financial asset physical asset
2. spot market future market
3. capital market, money market
4. primary market, secondary market
fill in the blank options: speculating, hedging
2. Types of financial markets Aa Aa Finandial markets across economies involve various kinds of particpants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place. You are preparing to take an examin your finance class, and you've...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than...
14-19 just answers
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases; increases B) increases; decreases C) decreases, decreases D) decreases; increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand...
14. If wealth increases, the demand for stocks and that of long-term bonds everything else held constant. A) increases, increases B) increases, decreases C) decreases; decreases D) decreases, increases 15. Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock relative to U.S. Treasury bonds and the demand for GE stock...
maricopa edu/courses/1063228/assignment/7513555 3583268 iz: Money and Banking ney and Banking You are on question I of 13 Choose the BEST answer. All over the globe commodities (eg corn wheat, beans) are priced in United States dollars. This in economic terms, is an example of O units of account O flexible values O store of value C Previous Next > F11 F8 F4 9 earn.maricopa.edu/courses/1063228/assignments/7513555?module item id-13583268 uiz: Money and Banking Money and Banking Progress You are on question 5 of...
dropdown options
1. financial asset physical asset
2. spot market future market
3. capital market, money market
4. primary market, secondary market
fill in the blank options: speculating, hedging
2. Types of financial markets Aa Aa Finandial markets across economies involve various kinds of particpants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place. You are preparing to take an examin your finance class, and you've...
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