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Question
If 1-year interest rates for the next three years are expected to be 4, 2, and 3 percent, and the 3-year term premium is 1 percent, than the 3-year bond rate will be
A) 1 percent.
B) 2 percent.
C) 3 percent.
D) 4 percent.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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The process in which people take their funds out of the banking system seeking higher-yielding securities is called
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C) disintermediation.
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A) as a tax on deposits.
B) as a subsidy on deposits.
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D) as a tax on loans.
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B) a better method for the purchase of long-term savings products.
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B) a call option.
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A) could choose; were required
B) could choose; were given the option
C) were required, could choose
D) were required; were required
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.
B) national banks establish branches in the cities containing Federal Reserve banks.
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Q:
The U.S. banking system is considered to be a dual system because
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B) it actually includes both banks and thrift institutions.
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The National Bank Act of 1863, and subsequent amendments to it,
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B) established the Office of the Comptroller of the Currency.
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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.
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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
A) Bank of United States was chartered in New York in 1801.
B) Bank of North America was chartered in Philadelphia in 1782.
C) Bank of United States was chartered in Philadelphia in 1801.
D) Bank of North America was chartered in New York in 1782.
Q:
________ within the U.S. can make loans to foreigners but cannot make loans to domestic residents.
A) Edge Act corporations
B) International Banking Facilities
C) Universal banks
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Q:
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C) Mexico, the Middle East, the Caribbean, and London.
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Q:
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Q:
In a ________ banking system, commercial banks engage in securities underwriting, but legal subsidiaries conduct the different activities. Also, banking and insurance are not typically undertaken together in this system.
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Q:
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Q:
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A) nonnegotiable; secondary
B) nonnegotiable; primary
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Q:
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A) Discount loans
B) Reserves
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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Q:
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Q:
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Q:
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B) the maturity bucket approach to gap analysis.
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Q:
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