Which of the Following Statements Is TRUE

question 111

Multiple Choice

Which of the following statements is TRUE?

• A)The interest rates that banks offer on investments or charge on loans is independent of the time horizon of the investment or loan.
• B)The Bank of Canada determines very short-term interest rates through its influence on the federal funds rate.
• C)The interest rates that are quoted by banks and other financial institutions are real interest rates.
• D)Fundamentally,interest rates are determined by the Bank of Canada.
• E)If interest rates are expected to fall in the future,long-term rates will tend to be higher than short-term rates.

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Definitions:

Combining Forms

Parts of words (often derived from Greek or Latin) that carry specific meanings and are used in the construction of medical and scientific terminology.

Suffix

A linguistic element added to the end of a word to form a derivative or change its grammatical function.

Consonant

A speech sound produced by partially or completely obstructing the flow of air through the vocal tract, characterized by less resonance and more restriction than vowels.

Impulses

Electrical or chemical signals transmitted through the nerves of the body.