81. The term “discount 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
82. The term “capital market” refers to a market where:
a. Short-term debt instruments are traded
b. Long-term debt instruments and equity securities are traded
c. Foreign currencies are traded
d. Commodities are traded
83. The term “exchange rate” refers to:
a. The rate at which central banks exchange currencies with each other
b. The rate at which commercial banks exchange currencies with each other
c. The rate at which governments exchange currencies with each other
d. The rate at which one currency can be exchanged for another currency
84. The term “capital flight” refers to:
a. The movement of financial assets from one country to another due to economic instability or unfavorable conditions
b. The movement of financial assets from one sector of the economy to another
c. The movement of financial assets from individuals to banks for safekeeping
d. The movement of financial assets from banks to the central bank for liquidity purposes
85. The term “interest rate corridor” refers to:
a. The range within which the central bank allows short-term interest rates to fluctuate
b. The range within which the government allows fiscal deficits to fluctuate
c. The range within which commercial banks set interest rates for lending and deposits
d. The range within which the stock market indices are allowed to fluctuate
