举一反三
- The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.
- Changes in interest rates make investments in long-term bonds risky.
- If interest rates increase, the prices of bonds and preferred stock increase.
- Which of the following are NOT traded in a capital market? () A: government agency securities B: state and local government bonds C: repurchase agreements D: corporate bonds
- For any competitive market, the supply curve is closely related to the A: preferences of consumers who purchase products in that market. B: income tax rates of consumers in that market. C: firms’ costs of production in that market D: interest rates on government bonds
内容
- 0
If interest rates are expected to rise in the future, the demand for long-term bonds _____ and the demand curve shifts to the _____.
- 1
Of the four theories that explain how interest rates on bonds with different terms to maturity are related, the one that assumes that bonds of different maturities are not substitutes for one another is the ________
- 2
According to the pure expectations theory, an upward-sloping yield curve implies: A: interest rates are expected to decline in the future. B: interest rates are expected to increase in the future. C: longer-term bonds are riskier than short-term bonds.
- 3
When bond interest rates become less volatile, the demand for bonds _________ and the interest rate _________. A: increases; rises B: increases; falls C: decreases; falls D: decreases; rises
- 4
To tighten fiscal policy the government would: A: Privatise government assets B: Raise interest rates C: Increase the size of the budget deficit D: Lower government spending