Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A)An increase in demand causes equilibrium price and quantity to rise.
• B)A decrease in demand causes equilibrium price and quantity to fall.
• C)An increase in supply causes equilibrium price to fall and quantity to rise.
• D)A decrease in supply causes equilibrium price to rise and quantity to rise.

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Definitions:

Treasury Bond

A long-term, fixed-interest U.S. government debt security with a maturity of more than ten years.

Ask Price

The lowest price a seller is willing to accept for a security.

SONIA

Sterling Overnight Index Average, an interest rate benchmark that represents the average of interest rates paid on overnight unsecured loans in the British sterling market.

LIBOR

The London Interbank Offered Rate, an interest rate average calculated from estimates submitted by the leading banks in London, used as a reference rate for lending and borrowing between banks.