Question 36 15 pts [36] Which of the following was identied. in my lectures and notes. as one of the basic attributes of a credit instrument? 0 Its interest rate. 0 Its amount of default risk. 0 Its denomination. 0 All of the above. Question 37 15 pts [37] In most cases. debt is considered less risky than equity because 0 households and government agencies are more reliable, as borrowers. than firms. 0 it is guaranteed by the federal government. 0 debt is an asset and equity is a liability. O the dates and sizes of the future payments are xed. Question 38 15 pts [38] Our study of interest rates was directly inspired by the question: 0 Why do people make loans or buy bonds? 0 What plays the role of the unit price in the credit market? 0 How is the credit market different from the stock market? 0 How does ination affect the attractiveness of credit instruments? Question 39 15 pts [39] The re_aldiscount ratio can be greaterthan 1 because 0 lenders always have the option of storing currency rather than lending it. 0 it may not be possible to store goods without losing all or part of them. Q lenders expect: to be repaid more than they lend. O the ination rate can be negative. Question 40 15 pts [40] Our procedure for adjusting the return rates on credit instruments for differences in their terms is based on the fact that O the repayment on a single payment loan can be divided into interest and principal. O long-term credit instruments have more interest risk than short-term credit instruments. 0 any long-term loan can be duplicated by a sequence of one-year loans. 0 the price of a bond is the present value of its payments at the market interest rate