If the Interest Rate on Treasury Bills Is Higher Than

question 80

Multiple Choice

If the interest rate on Treasury bills is higher than the federal funds rate, the quantity of overnight loans supplied ________ and the ________ for Treasury bills increases.

• A) decreases; demand
• B) decreases; supply
• C) increases; demand
• D) increases; supply

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Definitions:

Cross-Cutting Relations

The principle that a geologic unit or feature is older than a rock or feature that crosscuts it.

Igneous Intrusion

The process where magma from the Earth's mantle cuts through or intrudes into the Earth's crust, eventually cooling and solidifying to form igneous rock.

Cross-Cutting Relations

A principle in geology that an igneous intrusion or fault must be younger than the rocks it intrudes or displaces.

Superposition

A principle in geology that states in an undisturbed sequence of rocks, layers on the bottom are older than those above them.