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An expectation of price inflation will reduce the supply of bonds and increase the demand for bonds. True False Countries which have higher Money Supply

An expectation of price inflation will reduce the supply of bonds and increase the demand for bonds.

True
False

Countries which have higher Money Supply growth rates tend to have stable inflation:

True

False

Real interest rates can turn negative more easily than can nominal interest rate.

True
False

The liquidity effect of an increase in the money supply always results in a decrease in interest rate.

True

False

Canadian Banks are well capitalized and stable so OSFI requires Canadian banks to maintain a lower Capital-Asset ratio than is generally required by the Basel Accord.

True
False

Perpetuities pay no coupons:

True
False

Long-term bond yields are more volatile than short-term bond yields:

True
False

The current yield closely approximate the yield to maturity for money market instruments:

True
False

The current yield closely approximates the yield to maturity for long-term bonds:

True
False

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