Monetary Economics Exam 1 Questions and Answers High Distinctions 2023

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Financial markets promote economic efficiency by - -channeling funds from savers to investors. -The bond markets are important because they are - -the markets where interest rates are determined. ... -The interest rate on Baa (medium quality) corporate bonds is _____, on average, than other interest rates, and the spread between it and other rates became _____ in the 1970s. - -higher; larger -High interest rates might _____ purchasing a house or car but at the same time high interest rates might _____ saving. - -discourage; encourage -A share of common stock is a claim on a corporation's - -earnings and assets. [Show More]

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