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Bond Interest Rate Quiz

Financial markets and institutions

Financial market activities affect which of the following

The Markets where funds are transferred from those who have excess funds available to those who have a shortage of available funds are called __________

The price paid for the rental of borrowed funds is commonly referred to as the __________

The bond markets are important because they are ______

Interest rates are important to financial institutions since an interest rate increase with _________ the cost of acquiring funds and _________ the income from assets.

Typically, increasing interest rates because it ______

Compared to interest rates on long-term U.S. government bonds, interest rates fluctuate more on _________ and are lower on average.

Compared to interest rates on long-term U.S. government bonds, interest rates on three-month Treasury bills fluctuate _________ and are _________ on average.

Stock market is important because it is _________