Because of an Expected Rise in Interest Rates in the Future,a

question 75

Multiple Choice

Because of an expected rise in interest rates in the future,a banker will likely

• A)make long-term rather than short-term loans.
• B)buy short-term rather than long-term bonds.
• C)buy long-term rather than short-term bonds.
• D)make either short or long-term loans;expectations of future interest rates are irrelevant.

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Definitions:

Declaratory Act

A law passed by the British parliament in 1766 stating that the British parliament's taxing authority was the same in America as in Great Britain.

Letters from a Farmer in Pennsylvania

A series of essays written by John Dickinson in 1767 and 1768 protesting the Townshend Acts and arguing for the colonists' rights and liberties.

Declaration of Independence

The document adopted on July 4, 1776, by which the thirteen American colonies declared their independence from British rule.

Enlightenment

An intellectual and philosophical movement that dominated the world of ideas in Europe during the 17th and 18th centuries, emphasizing reason, individualism, and skepticism of traditional doctrines.