ECN 506 Study Guide - Quiz Guide: Business Cycle, Monetary Base, United States Treasury Security
Document Summary
Note: each multiple choice question carries 1 mark. For short answer and numerical questions, marks are mentioned by the side of the question. Q2 select a wrong statement from the following: (a) when a bank makes a loan, it sometimes requires borrowers to maintain a checking account at the bank until the loan is paid off. Therefore they will attempt to borrow up to their credit capability now, thus largely nullifying the controls. This is an example of policy ineffectiveness situation under rational expectations. Q4 the following 10 questions are multiple choice question. In the above expression, r is the ytm. We can say that in the above case, the bond is selling at a discount. F. (1x) the return on a 5 percent coupon bond that initially sells for ,000 and sells for ,100 one year later is (a) (b) (c) (d)