Question

4. In the market for money, when the Fed decreases the money stock, the money supply curve shifts to the and the interest rate , everything else held constant. A) right; rises B) right; falls C) left; falls D) left; rises Milton Friedman called the response of lower interest rates resulting from an increase in the money supply the effect A) liquidity B) price level C) expected-inflation D) income Questions based on "06 Financial Markets - The Risk and Term Structure of Interest Rates - Part 1" The risk structure of interest rates is A) the structure of how interest rates move over time, B) the relationship among interest rates on bonds with different maturities. C) the relationship among the term to maturity of different bonds. D) the relationship among interest rates of different bonds with the same maturity. 7. Three factors explain the risk structure of interest rates A) liquidity, default risk, and the income tax treatment of a security. B) maturity, default risk, and the income tax treatment of a security. C) maturity, liquidity, and the income tax treatment of a security. D) maturity, default risk, and the liquidity of a security. 8. The risk that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures is A) interest rate risk. B) inflation risk. C) liquidity risk. D) default risk.

just the answers please

Answer 1

Since the candidate only asked for answers :

4. C left, falls

5. C expected inflation

6. D the relationship among interest rates of different bonds with the same maturity

7.A liquidity, default risk, and the income tax treatment of a security

8.D default risk