Econ 3030 - Money, Banking and the Economy » Fall 2021 » Quiz 3

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Question #1
Choose the odd one out from below.
A.   yield
B.   coupon rate
C.   rate of return
D.   market interest rate
Question #2
Which of the risks below do not influence the price and yield of bonds?
A.   liquidity risk
B.   real estate risk
C.   maturity risk
D.   default risk
Question #3
When was the real rate in the U.S. the highest?
A.   Mid 2000s
B.   Early 2020s
C.   Mid 1970s
D.   Mid 1980s
Question #4
Yield curves and interest rate graphs show the same data.
A.   FALSE
B.   TRUE
Question #5
An yield curve tends to slope upward.
A.   TRUE
B.   FALSE
Question #6
Which does not impact a yield curve?
A.   running rate
B.   real interest rate
C.   inflation rate
D.   liquidity premium
Question #7
An yield curve in the Term Structure of Interest Rates shows the relationship between
A.   yields of the same risk but different maturity bonds
B.   yields of the same maturities but different default risk bonds
Question #8
An yield curve helps predict future interest rates.
A.   FALSE
B.   TRUE
Question #9
Current Issues: The Federal Reserve recently announced that it would slow down its bond purchasing program.
A.   TRUE
B.   FALSE
Question #10
As bond prices go up, the yields go down.
A.   TRUE
B.   FALSE

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