An inverted yield curve indicates expectations of

Question 1 options:

	rising short-term rates and a growing economy
	falling short-term rates and a slowing economy
	rising short-term rates and a slowing economy
	falling short-term rates and a growing economy

Direct finance is the main source of financing for large, publicly-traded companies.

Question 2 options:

	True
	False

Quantitative easing is a form of

Question 3 options:

	open market sale that is part of conventional monetary policy
	open market sale that is part of unconventional monetary policy
	open market purchase that is part of unconventional monetary policy
	open market purchase that is part of conventional monetary policy

A bond with yield to maturity greater than the coupon rate is trading at a discount.

Question 4 options:

	True
	False

The Federal Reserve tends to

Question 5 options:

	raise rates when the economy is too cold
	lower rates when the economy is too hot"
	raise rates when the economy is too hot

The largest universal banks in the U.S. are larger than the largest investment banks in the U.S.

Question 6 options:

	True
	False

If the Treasury yield is .75% and expected inflation is 1.75%, then the real yield is

Question 7 options:

	-2.5%
	2.5%
	1%
	-1%

In the traditional banking business model,

Question 8 options:

	deposits are the key liability and securities are the key asset
	deposits are the key liability and loans are the key asset
	loans are the key liability and deposits are the key asset
	bonds are the key liability and loans are the key asset

As the 10-yield has increased in 2021,

Question 9 options:

	the term premium has decreased and the yield curve has steepened
	the term premium has increased and the yield curve has flattened
	the term premium has decreased and the yield curve has flattened
	the term premium has increased and the yield curve has steepened

A larger role for financial intermediaries in the payments system tends to increase transaction fees.

Question 10 options:

	True
	False