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QUESTION 1: 20 marks Are the following statements true or false, please justify your answer in details? A) When the Federal Reserve or any Central
QUESTION 1: 20 marks Are the following statements true or false, please justify your answer in details? A) When the Federal Reserve or any Central bank injects liquidity in the market and increases the money supply, then the interest rate Increases. (5 marks) B) When Government decides to borrow 100 million Jordanian Dinar from the public through: - (5 marks) 1- Issuing treasury bills for 50 million Jordanian Dinar with maturity of 6 months 2- Issuing treasury bonds for 50 million Jordanian Dinar with maturity of 6 years. Government relies on primary money market for both issuance
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