Question
Short answers. 2-4 sentences. What is default premium on investment grade bond (high quality) VS the default premium on a junk bond----which is higher and
Short answers. 2-4 sentences.
What is default premium on investment grade bond (high quality) VS the default premium on a junk bond----which is higher and why? (hint: the default premium would be a lot lower on the investment grade bond. less risk).
what the discount window is?
explain how the Federal Reserve actually lowers and raises the Federal Funds rate ( hint: The Fed will lower the Fed Funds rate by buying securities---supply of reserves in the monetary system is increased and price fallsOpposite happens when Fed raises Fed Funds Rate. They will sell securities).
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