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.   coupon rate
B.   market interest rate
C.   yield
D.   rate of return
Question #2
Which of the risks below do not influence the price and yield of bonds?
A.   real estate risk
B.   liquidity risk
C.   default risk
D.   maturity risk
Question #3
When was the real rate in the U.S. the highest?
A.   Mid 2000s
B.   Mid 1980s
C.   Early 2020s
D.   Mid 1970s
Question #4
Yield curves and interest rate graphs show the same data.
A.   TRUE
B.   FALSE
Question #5
An yield curve tends to slope upward.
A.   FALSE
B.   TRUE
Question #6
Which does not impact a yield curve?
A.   liquidity premium
B.   running rate
C.   real interest rate
D.   inflation rate
Question #7
An yield curve in the Term Structure of Interest Rates shows the relationship between
A.   yields of the same maturities but different default risk bonds
B.   yields of the same risk but different maturity 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.   FALSE
B.   TRUE
Question #10
As bond prices go up, the yields go down.
A.   FALSE
B.   TRUE

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