Assume that the current one-year rate is 3 and the two-year rate ...

[ereecah]

Assume that the current one-year rate is 3 and the two-year rate is 5. Given this information, the one-year rate expected one year from now is
 
  A) 5.
  B) 6.
  C) 7.
  D) 9.
  E) 12.

Question 2

An open market sale of securities will tend to cause
 
  A) a reduction in the supply of central bank money.
  B) a reduction in the demand for currency.
  C) a reduction in the demand for reserves.
  D) none of the above

[Zebsrer]

Answer to Question 1

C

Answer to Question 2

A

[ereecah]

Thank you

[Zebsrer]

No problemo