Macro 4.1 - Financial Assets

What is the difference between a stock and a bond?

Which type of assest is the most liquid?

• Stocks

• Bonds

• Money

• Gold

What is the relationship between interest rates and bond prices?

• Inverse (one goes up, the other goes down)

• Direct (one goes up, the other goes up)

What is the opportunity cost for holding money?

Why is the demand for money downward sloping?