Question
A federal deficit occurs when: Select one: a. money supply in the market is low. b. stock prices of private companies decrease. c. social security
A federal deficit occurs when:
Select one:
a. money supply in the market is low.
b. stock prices of private companies decrease.
c. social security benefits given to citizens are reduced.
d. a government's expenses are more than its tax revenues.
e. a government issues securities to the public.
A normal yield curve that is upward sloping implies that:
Select one:
a. the returns on long-term securities are equal to the returns on short-term securities of similar risk.
b. the returns on short-term securities are lower than the returns on long-term securities of similar risk.
c. the returns on short-term securities are higher than the returns on long-term securities of similar risk.
d. the returns on bonds with a lower default risks are higher than the returns on bonds with higher default risks.
e. the returns on bonds with higher maturity risks are lower than the returns on bonds with lower maturity risks.
During periods of _____, the general tendency is toward higher interest rates.
Select one:
a. contraction
b. securitization
c. inflation
d. fiscal surplus
e. recession
The higher the expected rate of inflation:
Select one:
a. the higher is the money supply in the economy.
b. the lower is the tax rate in the economy.
c. the higher is the required rate of return on investment.
d. the lower is the loss in purchasing power of investors.
e. the lower is the maturity premium required by the investors
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