Please, only answer question 12. Disregard the other photo.

QUESTION 3 Which of the following would cause the required rate of return on a security to move in the opposite direction of the others? increase in liquidity decrease in the risk free rate reduction in the taxes associated with money earned on the security an increase in the time to maturity QUESTION 4 decreases. The cost of borrowing money by issuing a bond increases as the credit risk of the borrower tax rate on interest earned by the lender risk-free rate liquidity of the bond yleld to maturity QUESTION 12 Depository institutions (like commercial banks) typically borrow money from and loan money to other depository institutions. When this is done, the interest rate paid by the borrower is the risk-free rate repo rate federal bank rate discount rate federal funds rate