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Author Question: Financial intermediaries reduce individual risk because they pool the funds of savers. Indicate ... (Read 107 times)

audie

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on: Jun 29, 2018
Financial intermediaries reduce individual risk because they pool the funds of savers.
 
  Indicate whether the statement is true or false

Question 2

Explain why good news for the economy is bad news for bond prices.
 
  What will be an ideal response?


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momtoalll

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

When real GDP increases, the demand for money will increase. The increased demand for money will increase interest rates. Since bond prices move in the opposite direction from interest rates, when interest rates increase, as they do when the real GDP is growing, bond prices will decrease.


audie

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

ricroger

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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