The real rate of interest is composed of a risk-free rate of interest plus the default risk premium and liquidity premium that reflects the riskiness of the security.
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Q49: Bonds with higher liquidity must offer higher
Q50: A federal deficit occurs when _.
A)the government
Q51: Which of the following factors will lead
Q52: Open market operations occur when _.
A)municipal authorities
Q53: Inflation leads to an increase in the
Q55: The higher the perceived risk associated with
Q56: If the Federal Reserve loosens the money
Q57: A foreign trade deficit occurs when a
Q58: During _, both the demand for money
Q59: The Federal Reserve purchases U.S. Treasury securities
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