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Question
If the expected return on bonds increases, all else equal, the demand for bonds increases, the price of bonds ________, and the interest rate ________.
A) increases; decreases
B) increases; increases
C) decreases; decreases
D) decreases; increases
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Q:
Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has been
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Q:
The Federal Reserve Act of 1913 required that
A) state banks be subject to the same regulations as national banks.
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The National Bank Act of 1863, and subsequent amendments to it,
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The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains, in part, the passage of
A) the National Bank Charter Amendments of 1918.
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Q:
Currency circulated by banks that could be redeemed for gold was called
A) junk bonds.
B) banknotes.
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Q:
The Second Bank of the United States was denied a new charter by
A) President Andrew Jackson.
B) Vice President John Calhoun.
C) President Benjamin Harrison.
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Q:
Because of the abuses by state banks and the clear need for a central bank to help the federal government raise funds during the War of 1812, Congress created the
A) Bank of United States in 1812.
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Q:
The modern commercial banking system began in America when the
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________ within the U.S. can make loans to foreigners but cannot make loans to domestic residents.
A) Edge Act corporations
B) International Banking Facilities
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A) universal
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Q:
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A) discount loans; use
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Q:
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A) nonnegotiable; secondary
B) nonnegotiable; primary
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Q:
Which of the following are reported as liabilities on a bank's balance sheet?
A) Discount loans
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C) U.S. Treasury securities
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Q:
Looking at the Net Interest Margin indicates that the poor bank performance in the late 1980s
A) was not the result of interest-rate movements.
B) was not the result of risky loans made in the early 1980s.
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D) resulted from a huge decrease in provisions for loan losses.
Q:
All of the following are operating expenses for a bank except
A) service charges on deposit accounts.
B) salaries and employee benefits.
C) rent on buildings.
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Q:
Duration analysis involves comparing the average duration of the bank's ________ to the average duration of its ________.
A) securities portfolio; non-deposit liabilities
B) assets; liabilities
C) loan portfolio; deposit liabilities
D) assets; deposit liabilities
Q:
Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap for several maturity subintervals times the change in the interest rate is called
A) basic gap analysis.
B) the maturity bucket approach to gap analysis.
C) the segmented maturity approach to gap analysis.
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Q:
If a bank has ________ rate-sensitive assets than liabilities, then ________ in interest rates will increase bank profits.
A) more; a decline
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