A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________

The prime interest rate is the

A) interest rate on six-month U.S. Treasury bills. B) discount rate. C) Federal funds rate. D) interest rate that banks charge high-quality borrowers.

When a central bank sells bonds, cash reserves throughout the financial system increase, interest rates fall, and investment spending increases

Indicate whether the statement is true or false