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Government Bond Interest Quiz

Financial markets and institutions

Markets in which 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 (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the

The bond markets are important because

Interest rates are important to financial institutions since an interest rate increase

Typically, increasing interest rates

Compared to interest rates on long-term U.S. government bonds, interest rates on ____ fluctuate more 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.

The stock market is important because

Stock prices since the 1950s have been