QUESTION 6 _ is the spread between the interest rate on bonds with default risk...
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QUESTION 6 _ is the spread between the interest rate on bonds with default risk and default free bonds. a. Credit rating b. Risk spread C. Duration spread d. Foreign exchange spread Both c. and d. Both b. and c. QUESTION 7 Financial institutions exist to - O A. lower transaction costs OB. efficiently move money between savers and users of money Both A. and B. Neither A. nor B. QUESTION 8 Typically, increasing interest rates and a. discourages individuals from saving; encourages individual investing o b. discourages corporate investments; discourages savings OC discourages corporate expansion; discourages savings d. encourages savings; discourages business expansion Both a. and b. Both c. and d. QUESTION 9 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____ inflation rate exchange rate interest rate aggregate price level
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