True False O O 1. Other things equal, the nominal rate > the real rate when the inflation > 0%. O O 2. Other things equal, if m> 1, the APR > the periodic rate. O O 3. Other things equal, if m > 1, the EAR the rate on a 15-year fixed loan. 8. If interest is compounded every three months, m= 3. O o O 9. If the APY = 10%, the EAR = 10%. O O 10. Almost all financial rates are nominal as opposed to real. o O O O 11. The Truth in Lending Act requires banks to report the APR as opposed to the EAR. 12. The monthly deposit needed to accumulate $10,000 at 12% after 5 years the average yield on T- bonds. 14. Inflation is not a component of the nominal yield on T-bills. O 0 O O O 0 15. The monthly payment on a 6-year loan of $15,000 at 12% > $300. O o 16. If payments on a 16-year loan are quarterly, n must equal 4. O O 17. If the nominal rate is 8% and the inflation rate is 2%, the real rate > 8%. 0 O 18. Defaults on credit cards are more common than defaults on home loans. O O 19. When drawing a yield curve, interest rates are arrayed along the vertical axis. o O 20. During the last half of the 20th century, the average risk-free rate was closer to 2% than to 7%. True False O O 1. Other things equal, the nominal rate > the real rate when the inflation > 0%. O O 2. Other things equal, if m> 1, the APR > the periodic rate. O O 3. Other things equal, if m > 1, the EAR the rate on a 15-year fixed loan. 8. If interest is compounded every three months, m= 3. O o O 9. If the APY = 10%, the EAR = 10%. O O 10. Almost all financial rates are nominal as opposed to real. o O O O 11. The Truth in Lending Act requires banks to report the APR as opposed to the EAR. 12. The monthly deposit needed to accumulate $10,000 at 12% after 5 years the average yield on T- bonds. 14. Inflation is not a component of the nominal yield on T-bills. O 0 O O O 0 15. The monthly payment on a 6-year loan of $15,000 at 12% > $300. O o 16. If payments on a 16-year loan are quarterly, n must equal 4. O O 17. If the nominal rate is 8% and the inflation rate is 2%, the real rate > 8%. 0 O 18. Defaults on credit cards are more common than defaults on home loans. O O 19. When drawing a yield curve, interest rates are arrayed along the vertical axis. o O 20. During the last half of the 20th century, the average risk-free rate was closer to 2% than to 7%