True / False questions:

c. When a bond is traded, the buyer owes the seller accrued interest.______

d. Higher inflation rates lead to lower interest rates. _______

e. If Velocity increases, then prices and/or quantities increase._______

f. Quantitative easing adds liquidity when the federal funds rate is near zero. _____

g. Bonds may trade in advance of Treasury auction. _______

h. Off the run bonds are the most recently auctioned off for a given initial maturity. ___

i. The yield curve nearly always uses the on-the-run Treasuries. _____

j. If the yield curve in inverted, investors expect lower inflation or real rates. _____