Which of the following are typically traded financial securities?

A.

Stocks, CDOs, bank loans

B.

Student loans, bonds, stocks

C.

Private equity, bonds, CDOs

D.

Bonds, stocks, bank loans

E.

Private equity, bonds, CDOs

F.

Bonds, stocks, CDOs

Assume that debt contracts are written in nominal terms (no inflation adjustment is written into debt contracts). If the actual inflation rate turns out to be lower than the expected inflation rate:

A.

Borrowers and lenders will be unaffected since the actual inflation rate will have no impact on the nominal interest rate.

B.

Borrowers and lenders will both be worse off than expected since plans are made based on expectations regarding the inflation rate.

C.

Borrowers will be better off than expected since the real cost of borrowing turned out to be lower than expected.

D.

Borrowers will be worse off than expected since the real cost of borrowing turned out to be higher than expected.

According to the Federal Reserve's measures of monetary aggregates:

A.

None of these answers are correct

B.

Currency is part of every measure, money market fund shares are part of every measure

C.

Both currency and money market fund shares are only part of wider measures

D.

Currency is part of every measure, money market fund shares are only part of wider measures