Econ 320 Quiz 3 week 4 - Course Money Banking Test Quiz 3 Started 8:26 PM Submitted 10:09 PM Status Completed Attempt Score 25 out of 30 points Time

# Econ 320 Quiz 3 week 4 - Course Money Banking Test Quiz 3...

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Course Money & Banking Test Quiz 3 Started 4/29/15 8:26 PM Submitted 4/29/15 10:09 PM Status Completed Attempt Score 25 out of 30 points Time Elapsed 1 hour, 42 minutes out of 2 hours. Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 5. The second 15 questions cover the material in Chapter 6. Be sure you are in the correct Chapter when you take the quiz. Question 1 0 out of 1 points What does a flat yield curve imply, according to the expectations theory of the term structure of interest rates? Answer Selected Answer: Investors expect long-term interest rates to rise in the future. Correct Answer: Investors expect future short-term interest rates to be the same as the current short-term interest rate. Question 2 1 out of 1 points What does a yield curve show? Answer Selected Answer: The yield to maturity on the vertical axis and the time to maturity on the horizontal axis Correct Answer: The yield to maturity on the vertical axis and the time to maturity on the horizontal axis Question 3 1 out of 1 points According to the expectations theory of the term structure of interest rates, Answer Selected Answer: the long-term interest rate is equal to the average of current and expected future short-term interest rates. Correct Answer: the long-term interest rate is equal to the average of current and expected future short-term interest rates. Question 4 0 out of 1 points What does an upward-sloping yield curve imply, according to the expectations theory of the term structure of interest rates? Answer Selected Answer: Investors expect future short-term interest rates to be lower than the current short-term interest rate. Correct Answer: Investors expect future short-term interest rates to be higher than the current short-term interest rate.  #### You've reached the end of your free preview.

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