Question
1. What does the Treasury Bond Yield Curve indicate if it is sharply upward sloping with regard to expectations for near-term economic activity? A. That
1. What does the Treasury Bond Yield Curve indicate if it is sharply upward sloping with regard to expectations for near-term economic activity?
A. That economic activity is expected to rise in the near future
B. That economic activity is expected to stagnate in the near future
C. That there will be fewer bonds being issued by the government
D. That the oil price is likely to fall
2. Risk On' and 'Risk Off' are two fundamental market conditions. Which asset-price movements signal that a market is 'Risk Off'?
A. Medium Volatility, steady bond prices, steady oil prices, and higher equity prices
B. High volatility, high bond prices, high USD, lower equity prices
C. Low USD, high volatility, high metal prices, high oil price
D. Low USD, Low bond yields, steady equity prices, steady oil prices
3. What indirect effect do rising interest rates have on the prices of commodity futures and why?
A. They tend to push prices up as rising interest rates normally accompany improving economic conditions and commodity price inflation
B. They reduce yields
C. They have no impact at all
D. The cause prices to be flat
4. How long does a normal short-term business cycle last from trough to peak to trough?
A. 2-years
B. 4-6 years
C. 10 years
D. 12-15 years
5. Central banks around the world have been printing money in order to provide stimulus to economic conditions, while buying financial assets from banks and financial institutions in order to provide cash for them to lend to businesses. Arguably, where has a large percentage of this cash gone?
A. The cash has stayed in central banks as it helps them to survive poor economic conditions
B. The cash has been used entirely for supporting economic growth through business loans
C. A large percentage of the cash has gone into buying risky assets in the stock markets and high yielding debt in order to provide yield and capital gains
D. Central banks only provide cash to banks and financial institutions if they give guarantees that the cash will be spent on their top business clients
Notes: want some explanation to help to understand...
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