the economics of money, banking, and financial markets
159 $ © 2014 Pearson Canada Inc.$ Which of the following statements is true? A) A liquid asset is one that can be quickly and ...
160 $ © 2014 Pearson Canada Inc.$ An increase in the liquidity of corporate bonds will ____ the price of corporate bonds and _ ...
161 $ © 2014 Pearson Canada Inc.$ Which of the following statements is true? A) Because coupon payments on tax-exempt bonds ar ...
162 $ © 2014 Pearson Canada Inc.$ The interest rate on tax-exempt bonds rises relative to the interest rate on U.S. Treasury s ...
163 $ © 2014 Pearson Canada Inc.$ If income tax rates were lowered, then ____. A) the interest rate on tax-exempt bonds would ...
164 $ © 2014 Pearson Canada Inc.$ Explain the factors that determine the risk structure of interest rates. Explain how a chang ...
165 $ © 2014 Pearson Canada Inc.$ Based on default risk, which bonds are called: a. "investment grade", b. "junk bonds" or "spe ...
166 $ © 2014 Pearson Canada Inc.$ Typically, yield curves are ____. A) gently upward sloping B) mound shaped C) flat D) bowl s ...
167 $ © 2014 Pearson Canada Inc.$ An inverted yield curve ____. A) slopes up B) is flat C) slopes down D) has a U shape Answer ...
168 $ © 2014 Pearson Canada Inc.$ If bonds with different maturities are perfect substitutes, then the ____ on these bonds mus ...
169 $ © 2014 Pearson Canada Inc.$ If the expected path of 1-year interest rates over the next five years is 2 percent, 4 perce ...
170 $ © 2014 Pearson Canada Inc.$ According to the expectations theory of the term structure ____. A) when the yield curve is ...
171 $ © 2014 Pearson Canada Inc.$ According to this theory of the term structure, bonds of different maturities are not substi ...
172 $ © 2014 Pearson Canada Inc.$ The expectations theory and the segmented markets theory do not explain the facts very well, ...
173 $ © 2014 Pearson Canada Inc.$ The additional incentive that the purchaser of a Treasury security requires to buy a long-te ...
174 $ © 2014 Pearson Canada Inc.$ According to the liquidity premium theory of the term structure ____. A) bonds of different ...
175 $ © 2014 Pearson Canada Inc.$ According to the liquidity premium theory of the term structure, a downward sloping yield cu ...
176 $ © 2014 Pearson Canada Inc.$ If the yield curve has a mild upward slope, the liquidity premium theory (assuming a mild pr ...
177 $ © 2014 Pearson Canada Inc.$ The steeply upward sloping yield curve in the figure above indicates that ____ interest rate ...
178 $ © 2014 Pearson Canada Inc.$ The U-shaped yield curve in the figure above indicates that the inflation rate is expected t ...
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