Question 9 2.5 pts
The price paid for money is
Group of answer choices
the actual payment made by the borrower to the lender.
the amount borrowed from the lender.
the interest rate charged by the lender.
the principal and interest rate charged by the lender.
There is no price paid for money as it is not for sale.
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Question 10 2.5 pts
When the supply of money saved exceeds the demand for money, then banks will
Group of answer choices
increase interest rates to attract more savers.
lower interest rates to discourage savers.
put money on sale by making loans more attractive.
both increase interest rates to attract more savers and lower interest rates to discourage savers .
both lower interest rates to discourage savers and put money on sale by making loans more attractive.
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Question 11 2.5 pts
The four basic factors that affect the price paid (interest rate) for money are
Group of answer choices
the demand for money saved, the demand for borrowed funds, Federal Reserve policy, and risk.
the demand for money saved, the supply for borrowed funds, Federal Reserve policy, and risk.
the supply of money saved, the demand for borrowed funds, Federal Reserve policy, and risk.
the supply of money saved, the supply for borrowed funds, Federal Reserve policy, and risk.
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Question 12 2.5 pts
When the Federal Reserve increases the interest rate it charges banks to borrow reserves, it is controlling the money supply by using which of the following tools?
Group of answer choices
discount rate
open market operations
reserve requirements ratio
risk
unable to tell with the information provided
