6_Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

a.

stock

b.

artwork

c.

money

d.

gold

7_________ is the narrowest monetary aggregate that the Fed reports.

a.

M0

b.

M1

c.

M3

d.

M2

8_If an individual uses money from a demand deposit account to purchase a U.S. savings bond

a.

M1 stays the same and M2 increases.

b.

M1 decreases and M2 stays the same.

c.

M1 stays the same and M2 stays the same.

d.

M1 decreases and M2 decreases.

9_If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is

a.

$1,300.

b.

$13.

c.

$650.

d.

$130.

10_If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is

a.

5 percent.

b.

10 percent.

c.

0 percent.

d.

20 percent.