Suppose government economists have forecasted one-year T-bill rates for the following two years as follows: Year 1-year rate 1 4.50% 2 5.00% At what annual required rate of interest, bond investors would be willing to purchase a 2-year T-bond now? Question 17 options: 9.725% or higher. 4.75% or higher. 9.50% or lower. 5.425% or lower.

For no changes in monetary and fiscal policies, ____________ occurs during and after times of economic turmoil and uncertainties (i.e. economic downturn, a recession, or a depression), which __________________ during a period when spending is needed to boost economic activity. Question 28 options: leveraging; puts downward pressure on investment spending as savings rise and risk-taking falls. deleveraging; puts upward pressure on investment spending as savings fall and risk-taking rises. deleveraging; puts downward pressure on bond yields as savings rise and risk-taking falls. leveraging; puts upward pressure on bond yields as savings fall and risk-taking rises.

Question 29 (3.3333 points) Listen Which of the following is correct about a bank run? Question 29 options: A bank run occurs when a large number of depositors attempt to withdraw their money from a bank, which typically occurs at the beginning of a strong expansionary cycle. A bank run occurs when a large number of depositors want to set up new accounts at the same time but there is not enough room in the safes to keep all of their money. A bank run occurs when a large number of depositors run to the bank at the same time but there is not enough room for them in the lobby. A bank run occurs when a large number of depositors attempt to withdraw their money from a bank, because they believe the bank may run out of money and cease to function soon.

Question 30 (3.3333 points) Listen Mortgage Backed Securities (MBS) _____________________________ . Question 30 options: are bond-like fixed-income securities are created from the pooling of mortgages only are securitized by the market values of underlying real estate all of the above

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