29. The US Banking System performs each of the following EXCEPT 2. Accepting deposits Granting loans c. Clearing checks d. Trading stocks 30. A Central Bank is owned by shareholders but heavily related responsible for issuing new government debt c. responsible for regulating the banking system and the money supply d. the bank that's most conveniently located for customers 31. If the US dollar / British pound exchange rate increased from 2 to 1 The US dollar depreciated relative to the British pound b. The US dollar appreciated relative to the British pound c. One US dollar is now worth 4 British pounds d. I cannot be determined from the information provided 32. If Germany increases its demand for US crops, then all else equal a. The US currency will tend to increase relative to the German currency Currency prices will remain steady c. The supply of US crops will tend to all The price of German cars will send to increase Which of the following costs should be excluded when estimating project cash flows? a. Cannibalization costs, such as cash flows as project erodes from an existing business b. Financing costs, such as interest expense c. Opportunity costs, such as the foregone benefit of another project d. After-tax cash flows as a result of the project 31. Which of the following is NOT true for Net Present Value calculations? a. There is no discount factor applied to initial outlays b It results in an expected dollar value change in shareholder wealth c. It sometimes indicates declines in shareholder wealth d. It produces a percentage return 35. The yield on a 10-year US Treasury is 1%, expected inflation premium is 1%, and liquidity premium is zero. What is the maturity risk premium? h 19% C5% d. It cannot be determined from the information provided Page 10 of 13