When the Flow of Money Is Tight, the Price of Short-Term

question 70

Multiple Choice

When the flow of money is tight, the price of short-term loans will be bid ________ and the federal fund rate (FFR) will ________.

• A) up; rise
• B) down; rise
• C) up; fall
• D) down; fall
• E) up in good economic times and down in difficult economic times; vary depending on market forces

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Definitions:

Acute

Refers to conditions or diseases that occur suddenly and often severely, demanding immediate attention, but typically are short-lived.

Chronic

Describing a condition or disease persisting for a long time or constantly recurring, often referring to disorders or illnesses.

Usual Duties

The normal or routine tasks and responsibilities associated with a particular role or position.

Job Fear

Anxiety or distress related to aspects of one’s employment, including fear of losing the job or failing at tasks.