Which of the Following Would Be the least Sensitive to Changes

question 50

Multiple Choice

Which of the following would be the least sensitive to changes in interest rates?

• A) Demand deposits
• B) Repurchase agreements
• C) Federal funds purchased
• D) Eurodollar liabilities
• E) Jumbo CDs

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Definitions:

Cross-price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, represented as a ratio.

Complements

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

Inferior Goods

Goods for which demand decreases as consumer income rises, opposite to normal goods.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.