If the Interest Rate on Treasury Bills Is Higher Than

question 80

Multiple Choice

If the interest rate on Treasury bills is higher than the federal funds rate, the quantity of overnight loans supplied ________ and the ________ for Treasury bills increases.

• A) decreases; demand
• B) decreases; supply
• C) increases; demand
• D) increases; supply

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Definitions:

Investment Centre Performance

An evaluation of a business unit's profitability and efficiency in managing its assets to generate profits.

Organisation's Minimum Required Rate Of Return

The lowest acceptable return on investment that an organization deems necessary, reflecting its risk tolerance and financial objectives.

Capital Invested

The total amount of money that has been put into a company's projects, assets, or business endeavors to generate growth or profits.

Total Sales

The complete sum of all sales transactions made by a business within a specified period.