When Nominal Interest Rates Fall on Financial Assets Such as U.S.Treasury

question 117

Multiple Choice

When nominal interest rates fall on financial assets such as U.S.Treasury bills,the amount of interest that households and firms

• A) gain by holding money decreases.
• B) lose by holding money decreases.
• C) lose by holding money increases.
• D) lose or gain by holding money does not change.

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Definitions:

Interpreter

An individual who converts speech or sign language from one language into another to facilitate communication.

Demonstration

A method of teaching or showing how a process or activity is performed through direct action or presentation.

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A hormone produced in the pancreas that regulates the amount of glucose in the blood, essential for people with diabetes.