TRUE OR FALSE

19. The fractional reserve system creates a deposit multiplier.

20. The current condition of extreme government indebtedness is not an acute concern to many because of government's ability to print their own money.

13. The primary purpose of a default premium is to measure of an issuer's future financial prospects.

11. bond with an inflationary premium only is likely to be a short-term corporate bond.

5. Time value of money is of little value managing financial institutions.

1. A unit of account implies that money may be subdivided into smaller units.