Default risk A is zero for bonds issued by cities and states B is also known as

Default risk a is zero for bonds issued by cities and

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41) Default risk A)is zero for bonds issued by cities and states. B)is also known as market risk. C)exists only for the bonds of small corporations. D)is the probability that a borrower will not pay in full the promised coupon or principal.
42) The size of the money multiplier depends upon all of the following EXCEPT
43) Money market deposit accounts are included in
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. 44) Which of the following is NOT a bank liability?
45) Banks have a maturity mismatch since A)some of their loans are short term while others are long term. B)some of their borrowings are short term while others are long term. C)they borrow long term, but lend short term. D)they borrow short term, but lend long term.
46) Suppose FOMC revises target federal funds rate upwards. If the Federal Reserve wishes for the effective federal funds rate to be at their target level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant.
47) What does it mean for a money market mutual fund to "break the buck"?
48) Money that has no value other apart from its use as money:
49) If the federal government decreases its spending and doesn't decrease taxes, the bond supply shifts to theA)right and the equilibrium interest rate rises. B) right and the equilibrium interest rate falls. C)left and the equilibrium interest rate falls. D) left and the equilibrium interest rate rises.
50) If, after a deposit outflow, a bank needs an additional $3 million to meet its reserve requirements, the bankcan

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