menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Markets and Institutions Study Set 1
  4. Exam
    Exam 4: Why Do Interest Rates Change?
  5. Question
    When the Interest Rate on a Bond Is Below the Equilibrium
Solved

When the Interest Rate on a Bond Is Below the Equilibrium

Question 104

Question 104

Multiple Choice

When the interest rate on a bond is below the equilibrium interest rate,there is excess ________ in the bond market and the interest rate will ________.


A) demand; rise
B) demand; fall
C) supply; fall
D) supply; rise

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q99: What is the model whose equations are

Q100: What is the difference between systematic and

Q101: When bond prices become more volatile,the demand

Q102: When the expected inflation rate decreases,the demand

Q103: Figure 4.3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2777/.jpg" alt="Figure 4.3

Q105: Figure 4.5<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2777/.jpg" alt="Figure 4.5

Q106: When the demand for bonds _ or

Q107: When the quantity of bonds demanded equals

Q108: Factors that cause the demand curve for

Q109: What is the expected return on a

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines