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:

Greatest Risk

The highest likelihood of experiencing a negative outcome or event.

HIV

A virus known as Human Immunodeficiency Virus targets the immune system and may result in Acquired Immunodeficiency Syndrome (AIDS) without proper treatment.

Infected

Having been invaded by and negatively affected by pathogenic microorganisms such as bacteria, viruses, or fungi.

Risk Factors

Attributes, characteristics or exposures that increase the likelihood of developing a disease or injury.