If the bank of Canada ________ bonds, interest rates will fall and the price of bonds will ________. Select one: a. buys; rise b. sells; rise c. sells; fall d. buys; fall
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- Stock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market. What only about 30 percent of surveyed investors knew was that as bond prices rise, interest rates a. fall in reaction to the decreased demand for bonds. b. rise in reaction to the increased demand for bonds. c. fall in reaction to the increased demand for bonds. d. rise in reaction to the decreased demand for bonds.Which bond should have the highest interest rate? A. Low quality bonds B. Medium quality bonds C. High quality bonds Which of the following statements is NOT true? A. Stock owners benefit from stock price increases B. Common stocks are not securities C. Stock prices tend to be very volatile D. Higher stock prices allow companies access to more capital What is the expected impact of a decline in the money supply to the US economy? A. Lower aggregate prices (deflation) B. Higher aggregate prices (inflation) C. There is no general relationship between the money supply and inflaton Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues B. Federal government expenditures C. Federal budget deficit D. All of the above are components of federal fiscal policy A strong US dollar tends to A. Reduce exports to foreign…What happens to the equilibrium price of bonds if the supply of bonds shifts leftward? A. Bond price declines B. Bond price increases C. Bond price does not change
- If the quantity of bonds demanded exceeds the quantity of bonds supplied, bond prices: a. Will rise and yields would increase b. Would fall and yields would increase c. Would rise and yields would fall d. Will rise and yields will remain constantIf the supply of bonds falls, then bond prices O will generally rise O interest rates will generally fall O both a and b will occurWhat will happen in the bond market if the government imposes a limit on the amount of daily transactions? Which characteristic of an asset would be affected? How might it affect the interest rates. Explain with a graph.
- Which of the following statements is correct regarding bonds? A. An increase in market interest rate would reduce a bond's yield. B. Bonds with high yields reflect high risk instruments. C. The equilibrium market price of a bond is always greater than the present value of that bond. D. A decrease in the market interest rate would result in a decrease in the present value of the bond. dont use chatgpt answerWhat will happen in the bond market if the government imposes a limit on the amount of daily transactions? Which characteristic of an asset would be affected? How might it affect the interest rates. Explain with a graph. I want to see the answer to this question and steps. ThanksWhich of the following functions as both a store of value and a medium of exchange? a. Cash and stocks b. Neither cash nor stocks c. Cash but not stocks d. Stocks but not cash
- ctri alt alt ctrl Economics - Chapter 11 Section Review WHAT STEPS WOULD YOU TAKE TO PURCHASE A BOND AND How WOULD YOU SECURE A RETURN? RECIEVE A RETURN HOW IS BUYING A U.S. SAVINGS BOND LIKE LOANING MONEY TO THE U.S. GOVERNMENTfinancial markets that function well: a. increase the ease of converting common stocks into bonds b. reduce riskiness of most assets continually c. continually increase the liquidity of most assets d. including available information in asset pricesStock market becomes a little more volatile and households decide to sell their stocks and use the money to lend to corporation. As a result of this additional lending, Group of answer choices 1. Supply of bonds will increase, price of bonds will increase, and interest rate will decrease. 2. Demand for bonds will increase, price of bonds will decrease, and interest rate will decrease. 3. Supply of bonds will increase, price of bonds will increase, and interest rate will increase. 4. Demand for bonds will increase, price of bonds will decrease, and interest rate will increase. 5. Supply of bonds will increase, price of bonds will decrease, and interest rate will increase. 6. Demand for bonds will increase, price of bonds will increase, and interest rate will increase. 7. Supply of bonds will increase, price of bonds will decrease, and interest rate will decrease. 8. Demand for bonds will increase, price of bonds will increase, and interest rate will decrease.
