Plots of the yield curve can be useful for:

predicting the future course of inflation/predicting the future trends in foreign exchange rates/predicting the future course of interest rates/prediction the future central bank policy actions.

During the initial phase of a financial crisis, the deterioration in the balance sheet of financial institutions is due to _____________________

fewer resources to lend resulting in a decline in lending.

a loss of information production in financial markets creating increases in asymmetric information problems.

a substantial contraction in their capital.

A and BAll the above

In the short run, financial liberalization can contribute to the following problems EXCEPT

inadequate screening and monitoring of borrowers.

limits on risk-taking.

insufficient government supervision.

credit boom.

The American Taxpayer Relief Act of 2012 increased taxes on the top 1% to 2% of income earners from 35% to 39.6%. Supply and demand analysis predicts the impact of this change was a ________ interest rate on municipal bonds and a ________ interest rate on Treasury bonds.a.)higher; lower b.)lower; lower c.)higher; higher d.)lower; higher