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Economics MACRO > Financial Markets > Flashcards

Financial Markets Flashcards

1
Q

Bank’s assets in order of liquidity - Treasury bills- Government bonds- Balances at the Bank of England- Advances

A

Most liquid- Balances at the Bank of England- Treasury bills- Government bonds- AdvancesLeast liquid

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2
Q

What is the effect of a rise in demand for a bond on the price and yield?

A

The price will rise and yield will fall

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Economics MACRO (10 decks)

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