Answer:
b. The most likely explanation for an inverted yield curve is that investors expect inflation to decrease
Explanation:
I have attached an image which plots the behavivour of a yield curve and inflation in a same period. As you can observe, there is an indirect relation between boths curves.
U. s. treasury securities are considered risk-free because they have minimal if any, default risk.
Given that the U.S. government stands behind them with its full faith and credit, Treasury securities are among the safest investments. According to the maturity period, Treasury securities are separated into three major groups:
- Treasury Notes
- Treasury Bonds
- Treasury Bills
You can buy any of these Treasury securities directly from the US government, through a bank, or through a broker. Despite being low-risk, treasuries do have some risks, such as being affected by inflation and interest rate changes. Treasuries have low returns because they are a secure investment. Federal taxes must be paid on interest received on Treasury securities.
To know more about Treasury securities refer to: brainly.com/question/15004124
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Answer:
D. $1 comma 000 billion increase
Explanation:
The reserve requirement ratio determines the total amount of checkable deposits a bank must keep.
In this case the reserve ratio it's 5%, which means that the total amount of deposits cannot exceed an amount equal to 20 times its reserves.
If the reserves increase by $50 billion then $50/0,05 = 1.000 billion increase.