The Bond Markets Are Important Because

question 51

Multiple Choice

The bond markets are important because

• A) they are easily the most widely followed financial markets in the United States.
• B) they are the markets where interest rates are determined.
• C) they are the markets where foreign exchange rates are determined.
• D) all of the above.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, satisfying the same consumer needs or desires.

Complementary Goods

Products or services that are used together, where the use or consumption of one enhances the value of the other.

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.

Complement

A good whose demand increases when the price of another good decreases. Examples include a parking lot and shopping mall or a hamburger and a hamburger bun.