LIBOR is:
A: the interest rate commonly charged for loans between banks.
B: the average inflation rate in European countries.
C: the maximum loan rate ceiling on loans in the international money market.
D: the maximum deposit rate ceiling on deposits in the international money market.
E: the maximum interest rate offered on bonds that are issued in London.
A: the interest rate commonly charged for loans between banks.
B: the average inflation rate in European countries.
C: the maximum loan rate ceiling on loans in the international money market.
D: the maximum deposit rate ceiling on deposits in the international money market.
E: the maximum interest rate offered on bonds that are issued in London.
举一反三
- The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that A: the money market is in equilibrium. B: people buy bonds and the interest rate falls. C: people sell bonds and the interest rate falls. D: bond prices fall and so the interest rate falls.
- The money market interest rate is the long-term interest rate determined by interbank borrowing on reserves. （ ） A: True B: False
- The relationship among real interest rate, nominal interest rate, and expected inflation rate is _________. A: real interest rate = nominal interest rate+ expected inflation rate B: real interest rate = nominal interest rate- expected inflation rate C: real interest rate = expected inflation rate - nominal interest rate D: nominal interest rate = real interest rate - expected inflation rate
- Which of the following is not true? A: Interest rate parity theory links money markets and FX market. B: PPP theory relates the money market and the FX market. C: Fisher open links securities markets to the spot exchange rate market. D: Fisher effect relates goods markets to the securities market.
- if the nominal interest rate offered on a three-year deposit is 4% and the inflation rate over this period is 3%, the investor’s real rate of return is _____、