Urgent

Question 8 5 pts Theory states that long-term interest rates are geometric averages of current and expected future short-term interest rates plus liquidity risk premiums that increase with maturity. Liquidity Premium O Market Segmentation Unbiased Expectation O None of these choices D Question 9 5 pts The Fed funds rate is the rate that: Banks charge each other on loans of their reserve balances, Banks charge for loans to corporate customers. The Federal Reserve charges on emergency loans to commercial banks. Banks charge to lend foreign exchange to customers. D Question 10 5 pts If the Federal Reserve wishes to stimulate the economy (expand the money supply), it could: 1. Buy U.S. government securities. II. Raise the discount rate. III. Increase the required reserves ratio. I only I and II Tan III oll only Question 11 5 pts All else equal, a money market instrument has a higher risk of capital loss than a capital market instrument. True or False? True False Question 12 5 pts Which of the following money market instruments are short-term secured (collateralized) loans? Fed funds o Commercial papers O Repurchase agreements D Question 13 5 pts Suppose that $1 million face value commercial paper with a 150-day maturity is selling for $0.95 million. What is the BEY(bond equivalent yield) on the paper? 12.17% O 1281% O 12.63% 5.34%