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10. What two aspects about a normal yield curve is the Liquidity Premium Hypothesis good at explaining? 11. True or False: If the Market Segmentation

10. What two aspects about a normal yield curve is the Liquidity Premium Hypothesis good at explaining?

11. True or False: If the Market Segmentation Theory were true, the Federal Reserve could set the rate on a 12-year Treasury Bond exactly where desired.

12. According to the Fisher Effect, the nominal rate of interest is a function of two factors. Name them.

13. You live in a world with a required reserve rate of 25%. What would this worlds simple reserve multiplier be?

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