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Social Science Clinic => Economics => Topic started by: Beheh on Apr 19, 2019

Title: By influencing the current one-year rate and by affecting people's expectations of future short-term ...
Post by: Beheh on Apr 19, 2019

Question 1

The interest rate on a ________ security will continue to adjust until it is equal to an average of the current one-year rate and the expected one-year rate for the next year.

◦ one-year
◦ two-year
◦ three-year
◦ perpetual

Question 2

By influencing the current one-year rate and by affecting people's expectations of future short-term rates, the Fed can

◦ influence long term interest rates.
◦ set the prime rate.
◦ set the reserve rate.
◦ All of these.

Title: By influencing the current one-year rate and by affecting people's expectations of future short-term ...
Post by: jharrington11 on Apr 19, 2019

Answer 1

two-year

Answer 2

influence long term interest rates.

Title: Re: By influencing the current one-year rate and by affecting people's expectations of future short-
Post by: Chris Lê on Jan 8, 2023

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