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MrRa [10]
3 years ago
13

If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money marke

t as institutions sell bonds to obtain more money.1. True2. False
Business
1 answer:
kondaur [170]3 years ago
6 0

Answer:

2. False

Explanation:

The market for money is like the market for any other good: if demand is higher than supply, then, the price of money (the interest rate), will have to be lowered, so that money becomes cheaper and more abundant, and supply and demand become equal and reach equilibrium.

In this case, the centrla bank needs to lower the interest rates by buying bonds. When the central bank buys bonds, it prints more money that is put in the market, effectively increasing the supply of money, and lowering the interest rate in the meantime.

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3 years ago
What type of loan is most common when buying a house?
Alexus [3.1K]

Answer:

Fixed-rate

Explanation:

Fixed-rate mortgages are the most common type of home loan. Fixed-rate mortgages are offered in 15- and 30-year fixed-rate terms. Your interest rate will never change, though the principal and interest portion of your monthly mortgage payment will change as the loan amortizes

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What account form needs to balance before you can move forward with the Accounting Cycle?
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8 0
2 years ago
The rate of return required by investors in the market for owning a bond is called the:_______
VashaNatasha [74]

The rate of return required by investors in the market for owning a bond is called the <u>Yield to </u><u>maturity</u>

A bond's coupon rate is the rate it pays each year, and yield is the return it makes. A bond's coupon is expressed as a percentage of its face value. Face value is simply the face value of the bond or the value of the bond as quoted by the issuer.

A bond's current yield is the annual income from the investment, including interest and dividend payments, divided by the security's current price. Yield to maturity (YTM) is the expected total return from holding a bond to maturity.

The current yield is the annual rate of return on investment (interest or dividend) divided by the security's current price. This indicator looks at the current price of a bond rather than its face value.

Learn more about maturity here brainly.com/question/26376004

#SPJ4

6 0
2 years ago
The public debt surpassed GDP during the 1940s 1950s 1960s 1970s 1980s 1990s early 2000s then fell steadily, reaching its lowest
ElenaW [278]

Answer:

The public debt as a percentage of GDP in the United States, reached its lowest point in recent decades, in 2001, when it represented 54.9% of GDP.

After that year, this indicator began to increase, at first slowly, and from 2007 on very rapidly, propelled in part by the financial crisis. In 2010, the public debt as percentage of GDP was 89.3%.

6 0
3 years ago
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