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Which of the following statements is (are) FALSE? I. If bond yields decline, their prices will rise. II. If inflation expectations rise, all else held

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Which of the following statements is (are) FALSE? I. If bond yields decline, their prices will rise. II. If inflation expectations rise, all else held constant, bond prices will rise as investors will demand more bonds. III. Lowering the reserve requirements promotes the expansion of bank credit and lowers interest rates. IV. If the central bank imposes no min required reserves ratio such as for example is the case in New Zealand, banks will loan or invest all the money they raise from deposits and other borrowed funds. V. The more assets a bank creates through loans/credit, the more capital that bank is required to hold. II, IV and V. II and III. Only V. II and IV. Only

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