The _______ rate is the interest rate at which the Fed lends ______ to commercial banks.

The possibility that a borrower will break a promise made to the lender after the loan is made is one form of

A) the moral hazard problem. B) the adverse selection problem. C) outside collateral. D) inside collateral.

If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase

a. True b. False Indicate whether the statement is true or false