Which of the following investments is most ideal for a lender?
a. An investment that yields a nominal interest of 6 percent per year in a country that faces an inflation of 2 percent per year
b. An investment that yields a nominal interest of 4 percent per year in a country that faces an inflation of 2 percent per year
c. An investment that yields a nominal interest of 200 percent per year in a country that faces an inflation of 200 percent each year
d. An investment that yields a nominal interest of 50 percent per year in a country that faces an inflation of 70 percent each year
a
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Empirical evidence reveals a(n) __________ relationship between money and stock prices
A) positive and consistent B) negative and consistent C) completely independent D) inconsistent
Banks are different from other financial intermediaries because
A) banks receive funds and make loans. B) some of a bank's deposits are money. C) banks can conduct open market operations on their own. D) banks do not need to hold reserves against their deposits. E) banks are open longer hours.