Reference no: EM133238857
1. Which of the following statements best describes the relationship between different money markets?
None of the other options are correct.
The interest rates in all money markets will be exactly the same.
The interest rates across all money markets generally move together.
The interest rates in all money markets are determined by the money markets with the most transactions.
2. Which of the following statements about components of nominal interest rates is NOT correct?
None of the other options are incorrect.
Lower future inflation reduces the nominal interest rate.
The term premium captures long run risks other than inflation.
Higher inflation expectations increase the real interest rate.
3. Treasury securities are called safe assets because investors in Treasury securities are not exposed to any risk
True or False