Question
2) When nominal interest rates rise on financial assets such as U.S. Treasury bills, the amount of interest that households and firms A) gain by
2) When nominal interest rates rise on financial assets such as U.S. Treasury bills, the amount of interest that households and firms
A) gain by holding money increases.
B) lose by holding money decreases.
C) lose by holding money increases.
D) lose or gain by holding money does not change.
Answer: C
Why the correct answer is C?....
When nominal interest rates fall on financial assets such as U.S. Treasury bills, the amount of interest that households and firms
A) gain by holding money decreases.
B) lose by holding money decreases.
C) lose by holding money increases.
D) lose or gain by holding money does not change.
Answer: B
Why the correct answer is B?....
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The Business Credit Handbook
Authors: Mr. Reid A. Nunn
1st Edition
1500542725, 978-1500542726
