Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

there are 4 questions please anwser if each question is true or false. Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed)

there are 4 questions please anwser if each question is true or false.

image text in transcribed

Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget deficit or surplus, international factors, and levels of business activity-influence interest rates. Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false: Statements True False O During the credit crisis of 2008, investors around the world were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the United States and several other nations. The demand for U.S. Treasury bonds increased, which led to a rise in their price and a decline in their yields. The larger the federal deficit, other things held constant, the higher are interest rates If the Fed injects a huge amount of money into the markets, inflation is expected to decline, and long-term interest rates are expected to rise. The Federal Reserve Board has a significant influence over the level of economic activity, inflation, interest rates in the United States

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Structured Credit Handbook

Authors: Arvind Rajan, Glen McDermott, Ratul Roy

1st Edition

0471747491, 978-0471747499

More Books

Students also viewed these Finance questions

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago