• 2022-06-07
    An
    upward-sloping yield curve ________
    A: may
    be an indication that interest rates are expected to increase.
    B: may
    incorporate a liquidity premium.
    C: may
    reflect the confounding of the liquidity premium with interest rate
    expectations.
    D: All
    of the options are correct.
    E: None
    of the options are correct.
  • D

    举一反三

    内容

    • 0

      Assume that the inflation rate becomes much higher in the UK relative the US. This will place _______ pressure on the value of the British pound. Also, assume that interest rates in the UK begin to rise relative to interest rates in the US. The change in interest rates will place _______ pressure on the value of the British pound. A: upward;<br/>downward B: upward;<br/>upward C: downward;<br/>upward D: downward;<br/>downward

    • 1

      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.

    • 2

      Which<br/>of these states that the difference in interest rates between two<br/>countries is equal to the percentage difference between the forward<br/>exchange rate and the spot exchange rate?() A: Arbitrage<br/>equilibrium B: Relative<br/>purchasing power parity C: Absolute<br/>purchasing power parity D: Interest<br/>rate parity E: Cross-rate<br/>parity

    • 3

      To increase the money supply, the Fed could() A: sell<br/>government bonds. B: decrease<br/>the discount rate. C: increase<br/>the reserve requirement. D: None<br/>of the above is correct.

    • 4

      Which<br/>one of the following is consistent with a government’s policy<br/>objective to expand the level of economic activity?() A: An<br/>increase in taxation B: An<br/>increase in interest rates C: An<br/>increase in personal savings D: An<br/>increase in public expenditure