The Zero Lower Bound Refers to the Situation That

question 25

Multiple Choice

The zero lower bound refers to the situation that

• A)the lowest the central bank can decrease the nominal policy rate is 0%.
• B)real interest rate is 0%.
• C)inflation rate is 0%.
• D)risk premium is 0%.

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Definitions:

Transportation

The action of moving goods or people from one place to another using vehicles, vessels, or other means.

Facilities

Physical buildings and structures that are used for the production of goods or delivery of services.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects on the credit it extends to customers.

Receivables

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.