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TF 1. Capital market assets are long term debt. T F 2. If the demand for bonds rises, then so does the supply of bonds. T F 3
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Answer #1

As per policy we have to answer first four questions

1) Solution: True
Explanation: The capital market includes trading in stocks and bonds; and these are long-term assets

2) Solution: True
Explanation: Demand rises, and supplies of bonds also increases, because firms have more attractive opportunities for the investment

3) Solution: True
Explanation: The supply and demand analysis helps to determine interest rates

4) Solution: False
Explanation: The banks are not always illiquid

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