Author Question: A discount bond is a bond A) with no coupon payments. B) where the price of the bond is greater ... (Read 136 times)

azncindy619 · **on:** Jun 30, 2018

A discount bond is a bond

A) with no coupon payments.
B) where the price of the bond is greater than its face value.
C) where the interest rate is zero.
D) where the face value is zero.
E) that never matures.

Question 2

We would expect which of the following to occur when the central bank conducts an open market purchase of bonds?

A) a reduction in the monetary base (H)
B) a reduction in the money multiplier
C) an increase in the money multiplier
D) an increase in the money supply