chap6

Economics of Money, Banking and Financial Markets, The (9th Edition)

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Economics of Money, Banking, and Financial Markets, 8e (Mishkin) Chapter 6 6.1 Risk Structure of Interest Rates   1) 
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The risk  structure of interest rates is  A) 
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the structure of  how interest rates move over time.  B) 
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the relationship  among interest rates of different bonds with the same maturity.  C) 
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the relationship  among the term to maturity of different bonds.  D) 
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the relationship  among interest rates on bonds with different maturities.  Answer:  
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Ques Status: Previous Edition    2) 
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The risk  that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures is  A) 
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interest rate  risk.  B) 
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inflation risk.  C) 
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moral hazard.  D) 
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default risk.  Answer:  
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Ques Status: Revised    3) 
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Bonds  with no default risk are called  A) 
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flower bonds.  B) 
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no - risk bonds.  C) 
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default - free  bonds.  D) 
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zero - risk bonds.  Answer:  
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Ques Status: Previous Edition    4) 
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Which of  the following bonds are considered to be default - risk free?  A) 
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municipal  bonds  B) 
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investment - grade bonds  C) 
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U.S. Treasury  bonds  D) 
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junk bonds  Answer:  
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Ques Status: New    5) 
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U.S.  government bonds have no default risk because  A) 
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they are backed  by the full faith and credit of the federal government.  B) 
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the federal  government can increase taxes to pay its obligations.  C) 
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they are backed  with gold reserves.  D) 
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they can be  exchanged for silver at any time.  Answer:  
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chap6 - Economics of Money Banking and Financial Markets...

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