The money market interest rate is the long-term interest rate determined by interbank borrowing on reserves. （ ）
A: True
B: False
A: True
B: False
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.
- According to the expectation theory of term structure of interest rate theory, if the future forward rate is expected to decline, the long-term interest rate at the current point will be lower than the short-term interest rate. A: 正确 B: 错误
- The interest rate borrowers pay on their mortgages is determined by A: current long-term market rates. B: the term. C: the number of discount points. D: all of the above.
- The AA schedule shows________. ( ) A: Exchange rate and output pairs at which only the foreign exchange market is in equilibrium. B: Interest rate and output pairs at which only the foreign exchange market is in equilibrium. C: Interest rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium. D: Exchange rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium.
- Which of the following is a tool that is used by the Fed to control the quantity of money? A: open market operations B: excess reserves C: government expenditure multiplier D: real interest rate