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Question 13 Answer saved Points out of 1.00 ' Remove flag According to the expectations theory of the term structure Select one: A. when the

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Question 13 Answer saved Points out of 1.00 \\' Remove flag According to the expectations theory of the term structure Select one: A. when the yield curve is downward sloping, short-term interest rates are expected to decline in the future. 0 B. when the yield curve is steeply upward sloping, short-term interest rates are expected to rise in the future. C. buyers of bonds do not prefer bonds ofone maturity over another. D. all ofthe above. Clear my choice Question 14 Answer saved Points out of 1.00 \\' Remove flag Suppose the Fed acts to increase the non-borrowed monetary base. In the liquidity preference framework, everything else held constant, this action will cause in the money and in the equilibrium interest rate. Select one: A. an increase; demand for; an increase 0 B. an increase; supply of; a decrease C. a decrease; supply of; an increase D. a decrease; demand for; a decrease Clear my choice Question 17 Not yet answered Points out of 1.00 \\' Remove flag If a bank has $50 of rate sensitive assets and $60 in rate-sensitive liabilities, and the interest rate falls from 5 percent to 3 percent, a bank's profits by a. rise; $2.00 b. rise; $0.20 c. fall; $0.20 d. fall; $2.00

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