Question
1.If there is an expected rise in interest rates, banks prefer to A.make long-term rather than short-term loans. B.buy long-term rather than short-term bonds. C.buy
1.If there is an expected rise in interest rates, banks prefer to
A.make long-term rather than short-term loans.
B.buy long-term rather than short-term bonds.
C.buy short-term rather than long-term bonds.
D.make either short or long-term loans; expectations of future interest rates are irrelevant.
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
