Which of the Following Statements About the Overnight Loans Rate

question 33

Multiple Choice

Which of the following statements about the overnight loans rate is false?

• A)The overnight loans rate and the treasury bill rate move closely together.
• B)The overnight loans rate and the long-term bond rate trend in the same direction.
• C)The overnight loans rate is most often less than the long-term bond rate.
• D)The long-term bond rate fluctuates less than the short-term rates.
• E)The higher the overnight loans rate, the greater the quantity of money.

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