Which of the Following Is NOT True of the Interest

question 4

Multiple Choice

Which of the following is NOT true of the interest rate channel?

• A) bank loans play no special role.
• B) the Fed changes the real interest rate which affects the components of aggregate expenditures.
• C) borrowers are indifferent as to how and from whom they raise funds.
• D) alternative sources of funds are not substitutes for each other.

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Definitions:

Spinous Processes

Spinous processes are the bony projections off the back of each vertebra that can be felt through the skin and serve for muscle attachment and movement of the spine.

Transverse Processes

Lateral projections from the vertebrae, serving as points of attachment for muscles and ligaments.

Fontanel

Soft spots on a baby's skull where the bones haven't yet fused, allowing for growth of the brain and skull.

Occipital

Pertaining to the occipital bone or the back region of the head, near the base of the skull.