What is the interest rate, and how is it determined?

2.

Describe how interest rates may adjust to an unanticipated increase in inflation.

3.

Identify major periods of rising interest rates in U.S. history, and describe some of the underlying reasons for these interest rate movements.

4.

How did the Federal Reserve System (Fed) contribute to the recent historically low interest rates?

5.

How does the loanable funds theory explain the level of interest rates?

6.

What are the main sources of loanable funds? Indicate and briefly discuss the factors that affect the supply of loanable funds.

7.

Indicate the sources of demand for loanable funds, and discuss the factors that affect the demand for loanable funds.

8.

What are the factors, in addition to supply and demand relationships, that determine market interest rates?

9.

What are the types of marketable obligations issued by the Treasury?

10.

Explain the mechanics of issuing Treasury bills, indicating how the price of a new issue is determined.

11.

Describe the dealer system for marketable U.S. government obligations.

12.

What is the tax status of income from federal obligations?

13.

Describe any significant changes in the ownership pattern of federal debt securities in recent years.

14.

What have been the recent developments in the maturity distribution of marketable interest-bearing federal debt?

15.

Describe the process of advance refunding of the federal debt.

16.

What is the term structure of interest rates, and how is it expressed?