Which of the Following Is a Good Indicator of Short-Term

question 32

Multiple Choice

Which of the following is a good indicator of short-term interest rates in international markets?

• A)prime rate
• B)Treasury bill rate
• C)LIBOR
• D)Federal funds rate
• E)none of the above

---

Definitions:

Velocity V

Velocity V typically refers to the velocity of money, a measurement of the rate at which money is exchanged in an economy.

Percentage Fall

A measure that indicates the decrease in a value or quantity, expressed as a percentage of its previous value.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way.

Quantity Theory of Money

A theory stating that the general price level of goods and services is directly proportional to the amount of money in circulation.