During the financial crisis of 2007-2009,
A) mortgage-backed securities became more liquid.
B) information costs of mortgage-backed securities rose.
C) information costs of mortgage-backed securities declined.
D) the tax treatment of mortgage-backed securities was changed.
B
Economics
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When the First Bank of Townsville makes a loan, it
A) prints money. B) borrows the money from the Fed. C) creates a checkable deposit. D) decreases the quantity of money. E) increases its reserves.
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The interest rate on interbank loans is called the
A) discount rate. B) federal funds rate. C) repo rate. D) prime rate.
Economics