An increase in the federal funds rate should: ?
A) cause mortgage rates to increase by less than the increase in the federal funds rate.?
B) have an inverse impact on mortgage rates.?
C) not impact mortgage rates since the federal funds rate is a very short-term rate.?
D) cause the mortgage rates to increase by more than the increase in the federal funds rate.
Correct Answer:
Verified
Q21: The Fed will make a discount loan
Q22: The types of loans the Fed makes
Q23: Discount lending by the Fed: ?
A) is the key
Q24: The interest on excess reserves is: ?
A) the
Q25: One of the reasons primary credit exists
Q27: The interest rate on primary credit extended
Q28: Primary credit extended by the Fed is: ?
A) for
Q29: The daily reserve supply curve is: ?
A) upward sloping.?
B) downward
Q30: The fact that, for most of its
Q31: The ECB now frequently uses _ to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents