Question 45

Question text

An upward-sloping yield curve indicates that Treasury securities with ______________ maturities offer ______________ annualized yields.

Select one:

A. longer; lower

B. longer; higher

C. shorter; lower

D. shorter; higher

E. 2 and 3

Question 46

Question text

Assume that annualized yields of short-term and long-term securities are equal. If investors suddenly believe interest rates will increase, their actions may cause the yield curve to

Select one:

A. become inverted.

B. become flat.

C. become upward sloping.

D. be unaffected.

Question 47

Question text

The time between a monetary policy action being taken and when such action has a significant influence upon prices, employment, and economic output is called:

Select one:

A. Recognition Lag

B. Policy Lag

C. Impact Lag

D. Legal Lag

Question 48

Question text

A ______ dollar tends to exert inflationary pressure in the U.S.

Select one:

A. stable

B. strong

C. weak

D. Both 1 and 2 are correct.

Question 49

A loose money policy tends to ______ economic growth and ______ the inflation rate.

Select one:

A. stimulate; place downward pressure on

B. stimulate; place upward pressure on

C. dampen; place upward pressure on

D. dampen; place downward pressure on

Question 50

The statement sent by the FOMC to the New York Federal Reserve Bank's trading desk is known as the

Select one:

A. monetary order.

B. operational imperative.

C. policy directive.

D. economic outlook.