1. After the initiation of a financial crisis, which one of the following will worsen the financial market condition?

Select one: a. the deterioration in banks' balance sheets.

b. increases in bond prices.

c. declining interest rates.

d. unanticipated increases in the price level.

2. The duration of an asset or a liability for which there are intervening cash flows between issue and maturity:

Select one:

a. Not enough information to answer this question

b. exceeds the asset or the liability's maturity

c. equals the asset or the liability's maturity

d. is smaller than the asset or the liability's maturity