week 9 Flashcards by mustafa birkawi

Q

flow on effect of cash rate

A

firms who were planning to borrow in the bond market now seek to borrow in the OCM
reduce supply of 90 day bill, shifting supply curve to right
lenders will leave OCM and seek higher returns in the bond

How well did you know this?

1

Not at all

2

3

4

5

Perfectly