QUESTION 47

1.Low nominal interest rates can indicate

a.

an economy in hard times but poised to move into better times.

b.

either a sufficient money supply or an economy suffering from deflation.

c.

an economy suffering from deflation.

d.

a sign of sufficient liquidity in the financial system.

2 points

QUESTION 48

1.Which of these could be a reason for a decrease in the demand for loanable funds?

a.

A deterioration in business confidence

b.

A decrease in expectations about future inflation

c.

An increase in expectations about future inflation

d.

Lower expected household income

2 points

QUESTION 49

1.You own a 10-year, $10,000 US Treasury bond with a coupon rate of 2%. There are two years left to maturity, and you are planning to sell the bond in the secondary market. If the interest rate is 5%, how much can you expect to get for the bond?

a.

$10,500

b.

$10,000

c.

$9,628

d.

$9,442

2 points

QUESTION 50

1.Which of the following statements isnottrue of cryptocurrency?

a.

Cryptocurrency uses codes to keep information secret.

b.

Cryptocurrencies are a medium of exchange, just as other forms of money.

c.

Cryptocurrency is only centralized by two banks worldwide.

d.

Cryptocurrencies are decentralized, without any government oversight.