1)
About 75% of orders to buy or sell on the NYSE are executed using
SuperDOT.
Answer:
2)
A bonds with a 5% coupon as has a yield to maturity of 5%.
Answer:
3)
Income gap analysis and duration gap analysis are basically the
same thing, so hedging against one gap automatically hedges
against the other.
Answer:
4)
In an emerging market economy, a currency crisis can be triggered
by two things: a deterioration of bank balance sheets and severe
fiscal imbalances.
Answer:
5)
With the Obama tax increase that repealed the Bush tax cuts for
high-income tax payers in 2013, the after-tax expected return on
tax-free municipal bonds relative to Treasury bonds decreases.
Answer:
6)
In Europe, Greece was the first nation to face a debt crisis.
Answer:
7)
Figure 4.2
In Figure 4.2, one possible explanation for a decrease in the interest rate from i2 to i1 is
A) an increase in government budget deficits.
B) an increase in expected inflation.
C) a decrease in economic growth.
D) a decrease in the riskiness of bonds relative to other investments.
Answer:
8)
In South Korea, the primary force leading to their financial
crisis in 1997 was ________.
A) financial liberalization
B) fiscal mismanagement on the part of the government
C) fraud in financial markets
D) all of the above
E) only B and C of the above
Answer:
9)
The problem with monitoring as a tool to solve the ________
problem is that it can be expensive in terms of time and money,
as reflected in the name economists give it,costly state
verification.
A) principal-agent
B) adverse selection
C) audit
D) regulation
Answer:
10)
The Fed puts price stability along with maximum employment as its
