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1. What are two ways to think about an interest rate? What are some of the reasons we observe a number of interest rates in
1. What are two ways to think about an interest rate? What are some of the reasons we observe a number of interest rates in the economy rather than a single interest rate? What are some theories concerning the term structure of interest rates and what do they imply about the yield curve?
2. What are depository institutions? How do they differ from other financial institutions? What are the assets and liabilities of depository institutions? How do depository institutions manage the risk associated with both their assets and liabilities.
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