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Author Question: By influencing the current one-year rate and by affecting people's expectations of future short-term ... (Read 37 times)

Beheh

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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.


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Marked as best answer by Beheh on Apr 19, 2019

jharrington11

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