Why are the US interest rates, the Fed Funds rate and Treasury Securities interest rate so important to global capital flows? a. New York City's Wall Street is a major global capital market b. the US government instructs private investment banks as to where to invest c. These rates are the "risk free" benchmark rate against which many other interest rates are priced d. the US is a democracy

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 3SCQ: In the late 1990s, the U.S. government moved from a budget deficit to a budget surplus and the trade...
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Why are the US interest rates, the Fed
Funds rate and Treasury Securities interest
rate so important to global capital flows?
a. New York City's Wall Street is a major
global capital market
b. the US government instructs private
investment banks as to where to invest
c. These rates are the "risk free" benchmark
rate against which many other interest
rates are priced
d. the US is a democracy
Transcribed Image Text:Why are the US interest rates, the Fed Funds rate and Treasury Securities interest rate so important to global capital flows? a. New York City's Wall Street is a major global capital market b. the US government instructs private investment banks as to where to invest c. These rates are the "risk free" benchmark rate against which many other interest rates are priced d. the US is a democracy
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