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Q1) In recent years, major central banks in advanced economies have kept policy interest rates at extremely low level with the aim of (). A)
Q1) In recent years, major central banks in advanced economies have kept policy interest rates at extremely low level with the aim of (). A) raising inflation rate to the target level. B) lowering inflation rate to the target level. C) preventing stock prices from rising too rapidly. D) discouraging business firms to make investment. Q2) Which of the following is not a possible side effect of extremely low interest rate policy? A) Lowering commercial banks' profitability. B) Damaging the elderly who rely on pension income. C) Discouraging business firms to make investment. D) Encouraging excessive speculation in stock and real estate markets. Q3) Consider the following limit order book for ABC Company stock. Limit buy orders Price Shares $59 500 $58.5 400 $58 500 $57.5 300 $57 1,000 Limit sell orders Price Shares $60 200 $61.5 300 $63 100 $65.5 100 (1) Suppose you place market buy order for 300 shares of ABC company. How many shares can you buy at what prices
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