12. Which of the following economic forces impacts the yield on all debt securities in general ? _A. Economic Growth B. Inflation C. Federal Budget Deficits D. All of the Above 13. Which sectoris the largest supplier of loanable funds? _A. The government sector B. The business sector C. The household sector D. None of the above. 14. What characteristics of a debt security affects the yield of that individual security? A. Credit risk of the issuer B. Liquidity C. Tax status D. All of the above 15. How does high credit risk affect the yield of a security? A. The higher the credit risk the higher the yield B. It has no effect C. The higher the credit risk the lower the yield D. None of the above For investors liquidity of a security would be defined as: A. The risk that a company goes out of business B. Adjustments due to tax differences in the yield C. The ability to convert the investment to cash without loss of value D. None of the above 17. A taxable security offers a yield of 8% to an investor with a 20%marginal tax rate. The After tax yield is: A. 9.8% B. 8% C. 10% D. 6.4% 18. The Treasury yield curve is the graphic representation of the term structure ofinterest rates. Under the normal economic conditions which of the answers below best desaibes that relationship? _A. The longer the term the higher the yield _B. The shorter the term the higher the yield C. No change in the yield related to the term D. All of the above