22. The supply of loanable funds is derived from: a. savers b. banks c. savings and loan institutions d. the Federal Reserve System 23. The rate of interest is the price of: a. capital b. bonds c. trading consumption in time d. labor 24. When the amount taken as tax increases as taxable income increases the tax system is called progressive. a. True b. False 25. A corporate bond with ten years to maturity is traded in what is called the capital market. a. True b. False 26. Which of the following are duties of the CFO of a company? a. Forecast the company's financial needs b. Interact with financial markets to secure the firm's financing of its operations c. Evaluate the firm's financial performance d. Evaluate the economic viability of capital investment proposals e. All of the above are duties of the CFO 27. The rate at which someone is willing to trade off present consumption for future consumption is called: a. The market rate of interest. b. The rate of time preference c. The federal funds rate d. The discount rate 28. Capital is heterogeneous: a. True b. False 29. When a market yield curve is downward sloping, the expectations theory of interest rates suggests that: a. Investors expect short-term rates to remain constant b. Investors expect short-term rates to rise in the future c. Investors expect short-term rates to fall in the future d. It is impossible to know what investors expect