Which of the Following Statements About the Overnight Loans Rate

question 46

Multiple Choice

Which of the following statements about the overnight loans rate is false?

• A)The overnight loans rate and the treasury bill rate move closely together.
• B)The overnight loans rate is most often less than the long- term bond rate.
• C)The overnight loans rate and the long- term bond rate trend in the same direction.
• D)The long- term bond rate fluctuates less than the short- term rates.
• E)The higher the overnight loans rate, the greater the quantity of money.

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Definitions:

Industrial Revolution

The period of major industrialization that took place during the late 1700s and early 1800s which transformed economies that had been based on agriculture and handicrafts into economies based on large-scale industry, mechanized manufacturing, and the factory system.

Productivity Growth

An increase in the efficiency of producing goods or services within an economy, often leading to more output for the same amount of inputs.

Raise Savings

Encouraging or implementing strategies to increase the amount of money that individuals or entities set aside for future use rather than spending immediately.

NIC

Newly Industrialized Country, referring to nations experiencing rapid economic growth and industrialization.