According to the Federal Reserve's measures of monetary aggregates:

A.

None of these answers are correct

B.

Currency is part of every measure, money market fund shares are part of every measure

C.

Both currency and money market fund shares are only part of wider measures

D.

Currency is part of every measure, money market fund shares are only part of wider measures

Corporate bonds typically have a higher yield than government bonds because:

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Part 1

A.

All of these reasons

B.

They have a shorter maturity

C.

They have a higher price

D.

They are perceived as more risky

E.

None of these reasons, the statement is false

F.

There is a larger supply of them

Which of the following statements is true (all else equal)?

A.

If you are the owner of bank capital, your return on equity is higher if the ratio of assets to bank capital is higher.

B.

The return on equity in the banking sector is unrelated to the return on assets.

C.

Regulatory agencies try to implement high ratios of asset to bank capital because this is good for financial stability.

D.

None of these statements is true.