13. Which of the following statements is true? a. Bonds vary directly with interest rates. b. Bond volatility varies inversely with maturity c. Low coupon bonds have lower bond volatility than high coupon bonds. d. Bond duration increases with maturity. 14. If market interest rates fall after a bond is issued, the a. b. c. d. face value of the bond increases. investor will sell the bond. market value of the bond is increasing. market value of the bond is decreasing. 15. Which of the following tools of monetary policy has the greatest impact? a. discount rate b. Regulation Q c. open market operations d. bank examination 6. Which of the following is the major monetary policy making body of the U.S. FRS A) FOMC B) OCC C) FRB bank presidents D) U.S. Congress E) Group of ten