Author Question: Assume that the current one-year rate is 3 and the two-year rate is 5. Given this information, the ... (Read 175 times)

ereecah

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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

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Answer to Question 1

C

Answer to Question 2

A



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