{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


Quiz_1_Version_B_Answers_Fall_2010_FIN_353[1] - FIN 353...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 353 Quiz 1 Version B Student: ___________________________________________________________________________ 1. Which of the following Fed objectives conflict? A. Economic growth, high employment. B. Price stability, lender of last resort. C. High employment, lender of last resort. D. Price stability, high employment. Table 1 Banking System Assets Liabilities Reserves $100,000 Discount Loans $100,000 Federal Reserve System Assets Liabilities Discount Loans $100,000 Reserves $100,000 2. Based on the T account above, Table 1, which of the following has occurred? 3. When the Fed sells Treasury securities the supply for money _______ and the federal funds rate ________? 4. The short-term nominal interest rate is 4% and expected inflation is 2%. A forecast for next year’s nominal rate is an increase by 150 basis points, but inflation will fall to 1.5%. What is the expected change in real interest? 5. The risk structure of interest rates A. the relationship among interest rates on bonds with different maturities. B. the structure of how interest rates move over time. C. the relationship among interest rates of different bonds with the same maturity. D. the relationship among the terms of maturity.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6. The Fed's primary monetary policy tool is
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 6

Quiz_1_Version_B_Answers_Fall_2010_FIN_353[1] - FIN 353...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online