When the interest rate falls, bond values
A) rise.
B) fall.
C) are unchanged because the interest rate paid on a bond is fixed.
D) will either increase or decrease depending on the type of bond.
Correct Answer:
Verified
Q275: The discount rate is
A) the interest rate
Q276: Firms and governments can borrow funds by
Q277: When interest rates rise, security values rise.
Q278: The Fed uses open market operations to
A)
Q279: Firms and governments pay interest to the
Q281: When the Fed raises the required reserve
Q282: An increase in the required reserve ratio
A)
Q283: In April 2015, the assets with the
Q284: From time to time, the Federal Reserve
Q285: Assume that all commercial banks are loaned
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