47 The spot rate best describes a. the futures rate b. the current rate c. the forward rate d. the implied rate 48 A borrower that wants to put down more than 25% as a down payment on a home a is most likely to have to take out primary mortgage insurance (PMI) b probably does does not need to take out primary mortgage insurance (PMI) c will most likely not be able to afford that home d is classified as a sub-prime mortgage borrower 49 If the Federal Reserve Bank believed inflation was rising and needed to be controlled, they would probably a. increase the money supply b. consider raising interest rates c. destabilize the money supply d. reduce demand for stocks 50 A hybrid security that has characteristics of both bonds and common stock a. municipal bonds b. preferred stock c. coupon bonds d. step-up bonds 47 The spot rate best describes a. the futures rate b. the current rate c. the forward rate d. the implied rate 48 A borrower that wants to put down more than 25% as a down payment on a home a is most likely to have to take out primary mortgage insurance (PMI) b probably does does not need to take out primary mortgage insurance (PMI) c will most likely not be able to afford that home d is classified as a sub-prime mortgage borrower 49 If the Federal Reserve Bank believed inflation was rising and needed to be controlled, they would probably a. increase the money supply b. consider raising interest rates c. destabilize the money supply d. reduce demand for stocks 50 A hybrid security that has characteristics of both bonds and common stock a. municipal bonds b. preferred stock c. coupon bonds d. step-up bonds