Question 39 1 Point The Treasury bonds are very liquid because they can be quickly and cheaply converted into cash. A True B False Question 40 1 Point The discount rate, open market operations, and margin requirements are the main three policy tools used by the Fed to manipulate the money supply. True B False 1 Point Question 34 According to the liquidity premium theory of the term structure of interest rates, buyers of bonds may prefer bonds of one maturity over another, yet interest rates on bonds of different maturities move together over time. A) True B False