A central bank which sets the short-term rate of interest must:

Related MCQs

• Using a supply and demand framework, what is likely to happen to share prices in general if the central bank raises interest rates in response to a fall in the exchange rate?
• Using a supply and demand framework, what is likely to happen to share prices in general if the central bank unexpectedly raises interest rates?
• According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
• A bond whose coupon rate is below the current market rate of interest will have a price:
• The ability of central banks to influence short-term interest rates rests upon:
• Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
• Consider the following statements 1. Chit Funds are type of NBFC 2. All NBFCs are ruled by RBI 3. RBI said any purchase of a stake of 26% or more in a company, or a change in more than 30% of its directors, would need the central bank's permission. Which of the above statements is/are correct?
• __________would encompass fees received by the bank, but not revenues coming from interest charges on loans.
• While hedging through interest rate futures reduces or eliminates the risk of loss, it also
• According to the Fisher hypothesis, the nominal rate of interest consists of: