Cal State LA » Economics » Econ 3030 - Money, Banking and the Economy » Fall 2021

Question #1

Choose the party who worry least about asymmetric information

A. federal credit union

B. bank of america

C. loan sharks

D. wells fargo

Question #2

Which of the following has the shortest maturity?

A. Federal Funds

B. real estate

C. 10-year Treasury bond

D. perpetuity

Question #3

According to the Fisher Equation, the nominal interest is the real rate minus the inflation rate.

A. FALSE

B. TRUE

Question #4

As the Treasury reduces its bond buying program, or tapering, the prices of bonds will

A. go up

B. go down

C. go up and then down

D. go sideways

Question #5

What is the inverse relationship between bond prices and bond yields?

A. as prices go up, yields go down

B. as prices go up, yields go up

C. as prices go down, yields go down

Question #6

You are using a bank because __________.

A. it is convenient

B. you are forced to do it

C. you are charitable