B the insatiability oF wants in a Free market economy C poorly managed

B the insatiability of wants in a free market economy

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B) the insatiability oF wants in a Free market economy. C) poorly-managed companies producing what consumers want only by coincidence. D) the likelihood that needs will not be the same as wants. 23) Under the Exchange Rate Mechanism oF the European Monetary System, when the British pound depreciated below its lower limit against the German mark, the Bank oF England was required to buy pounds; marks; gaining marks; pounds; gaining marks; pounds; losing
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pounds; marks; losing 24) A one-year bond currently pays 5% interest. It's expected that it will pay 4.5% next year and 4% the following year. The two-year term premium is 0.2% while the three-year term premium is 0.35%. What is the interest rate on a two-year bond according to the liquidity premium theory? 4.975% 4.75% 4.95% 4.5% 25) If a bank grants you a mortgage, the mortgage is a liability to you as well as a liability to the bank. an asset to you, but a liability to the bank. an asset to you as well as an asset to the bank. a liability to you, but an asset to the bank. 26) If a bank has a capital to asset ratio of 0.1 and a return on assets of 1%, what is its return on equity? A) 10% B) 20% C) 0.2% D) 2.1% 27) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year? -5 percent
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5 percent -10 percent 10 percent 28) When a country's nominal exchange rate depreciates, the price of that country's goods abroad decreases. that country's goods abroad increases. that country's goods produced and sold at home decreases. foreign goods sold in the country decreases. 29) All of the following are new rules aFecting the shadow banking system as a result of the Dodd-±rank Act EXCEPT: securitized loans must now be insured ²rms selling mortgage-backed securities and similar assets are required to hold 5% of the credit risk large hedge funds are required to register with the SEC some trading of derivatives are required to take place on exchanges 30) A bank panic occurs when A) a bank lacks su³cient funds with which to make loans. B) a bank is worried that its loans will not be repaid. C) an individual bank cannot meet its reserve requirements. D) the situation in which many banks experience a bank run simultaneously.
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31) Everything else held constant, in the market for reserves, increases in the discount rate aFect the federal funds rate when the funds rate is below the discount rate. when the demand for federal funds intersects the vertical section of the reserve supply curve. when the funds rate equals the discount rate. when the demand for federal funds equals zero. 32) If the current interest rates on 1 year, 2 year and 3 year bonds are 1%, 1.5% and 2.0%, respectively, what is expected future interest rate on 1 year bond two years from now?
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  • Spring '13
  • Chikhladze
  • Monetary Policy, Federal Reserve System, federal funds rate

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