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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Definitions:

Other Income

Revenue generated from activities that are not part of a company's primary business operations, including interest, dividends, and gains from asset sales.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period.

Separating Responsibilities

A risk management technique that involves dividing tasks and authorities among different individuals or groups to reduce the risk of error or fraud.

Control Procedure

Specific actions or steps taken to achieve desired outcomes in managing risks, ensuring accurate reporting, and complying with policies and regulations.