1. Interest rates on securities issued by borrowers in the economy other than the government must reflect the different types and degrees of risk that investors in those securities must assume. True or False

2. Central banks usually offer some transactional banking services directly to the public as well as to banks and securities dealers. True or False

3. Increased required reserves mandated by the Federal Reserve will tend to increase interest rates in the debt markets. True or False

4. In addition to the Federal Reserve Bank, the types of financial institutions in the United States that dominate the industry and the economy are: the commercial banks, the savings and loans, The insurance companies, the investment companies (mutual funds) and the investment banks. True or False

5. Most commercial banks in the United States are chartered by the federal govenment rather than by the states. True or False

6. The interest due on Municipal Revenue bonds is payable only from a specified source of revenue (generally the project being financed by the bond) and are not backed by the taxing power of a state or local unit of government. True or False