61. Which of the following is a function of the money market?
a. Facilitating long-term borrowing and lending
b. Trading stocks and bonds
c. Facilitating short-term borrowing and lending
d. Buying and selling foreign currencies
62. The term “repo rate” refers to the rate at which:
a. Commercial banks lend to the central bank
b. The central bank lends to commercial banks
c. Commercial banks lend to each other in the money market
d. The government borrows from the central bank
63. The term “treasury bills” refers to:
a. Bonds issued by the central bank to control the money supply
b. Short-term debt instruments issued by the government to raise funds
c. Stocks issued by commercial banks to raise capital
d. Long-term government bonds traded in the secondary market
64. The term “yield curve” refers to:
a. The graphical representation of interest rates on different types of securities
b. The graphical representation of government budget deficits over time
c. The graphical representation of exchange rates between currencies
d. The graphical representation of stock market indices over time
65. The term “open market operations” refer to the central bank’s actions of:
a. Buying and selling government securities in the open market to control the money supply
b. Buying and selling foreign currencies in the open market to stabilize exchange rates
c. Providing loans to commercial banks in the open market to enhance liquidity
d. Setting interest rates in the open market to influence borrowing and lending
