The money market is the market in which are traded long-term debt and equity instruments new issues of securities previously issued securities short-term debt instruments Question 10 An example of direct financing is if you were to lend money to your neighbor. True False Dollars received in the future are worth than dollars received today. The process of calculating what dollars received in the future are worth today is called less; discounting more; inflating less; inflating more; discounting Question 12 A discount bond is also called a coupon bond. is also called a fixed-payment bond. is also called a zero-coupon bond. is also called a corporate bond. Money is defined as anything that is generally accepted in payment for goods and services or in the repayment of debt. All of these. only anything that is generally accepted in payment for goods and services or in the repayment of debt and bills of exchange. bills of exchange. a riskless repository of spending pow Question 14 1pts The nominal interest rate minus the expected rate of inflation is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate. is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate. defines the discount rate. defines the real interest rate. Reinvestment risk is the risk that a bond's future coupen payments may have to be invested at a rate lower than the bond's yicld to maturity. a bond's value may fall in the future. an investor's holding period will be short and cqual in length to the maturity of the bonds he or she holds. a bond's issuer may fail to make the future coupon payments and the investor will have no cash to reinvest. Question 16 1 pts A bond's future payments are called its discounted present values. maturity values. yields to maturity. cash flows