An increase in wealth of financial market participants will cause, at every interest rate, the supply curve to shift down and to the right. True False Question 7 The required return rate is the interest rate used to calculate the annual cash flow a bond issuer promises to pay investors. True False The Federal Reserve System consists of 9 FRBs located in major U.S. cities. True False Question 9 In a direct transfer a corporation sells its stock or debt directly to investors without going through a financial institution. True False Default risk is the risk that a security cannot be sold at a predictable price with low transaction costs at short notice. True False Question 11 Financial markets are structures through which funds flow. True False Question 12 Banks chartered through the OCC must also be members of the FRS. True False