T F 1. The supply of loanable funds is the demand for bonds because the only way you lend someone your money is if they give you a bond or promise to repay.

T F 2. When you lend money, the first thing you get back is your money.

T F 3. If the interest rate rises, the value of fixed payment assets also rises.

T F 4. Depository institutions are always illiquid.

T F 5. All banks in the US are chartered by the federal government.