1-As the nonprice restrictions put on borrowers as a condition of borrowing increases, market participants willingness to borrow decreases. How will this impact the equilibrium interest rate?"

		Equilibrium interest rate will increase
		Equilibrium interest rate will decrease
		Equilibrium interest rate will stay the same
		Equilibrium interest rate will shift

2-Suppose that the current one-year (one-year spot rate) and expected one-year T-bill rates over the following three years (i.e. 2, 3, and 4 respectively) are as follows: 1R1 = 6.00%, 2R1 = 7.00%, 3R1 = 7.50%, and 4R1 = 7.85%. Using Pure Expectations Theory, calculate the current (long-term) rates for the one-year maturity Treasury security."

		6.00%
		6.50%
		6.83%
		7.09%

3-"The Fed has thrown $255.6 billion into the funding market through early January to ensure the financial system operates smoothly over the choppy year-end period. It will continue pumping tens of billions a day into the repo market through the end of January at least, including up to another $185 billion in one-day and term deals on Thursday, when the market kicks off the new year. How will this impact the equilibrium interest rate in the repo market?"

		Equilibrium interest rate will increase
		Equilibrium interest rate will decrease
		Equilibrium interest rate will stay the same
		Equilibrium interest rate will shift

4-What is the federal funds rate?

		The interest rate charged to banks when the Federal Reserve acts as the lender of last resort.
		The interest rate received as payments on a Treasury bond.
		The interest rate on short-term funds transferred between financial institutions
		The interest rate on loans made by the Federal Reserve to depository institutions.