QUESTION 4 The type of bank where individuals set up checking and savings accounts is a commercial bank. True False QUESTIONS The balance sheet identity refers to the fact that Current Assets and Current Liabilities must be equal to each other. Assets must equal Liabilities plus Shareholders' Equity Shareholders equity can never be negative. Net Property Plant and Equipment must equal Gross Property Plant and Equipment minus Accumulated Depreciation Shareholders equity in the current year must equal shareholders equity in prior year plus net income from the current year that is not being paid out as dividends or used to repurchase stock QUESTION 6 According to the Liquidity Preference Hypothesis, the yield curve should normally be upward sloping. This is because a maturity premium is necessary to entice investors to invest in longer term securities True False