correct and provide explanation

1. Choose the odd one out from below
2. Market interest rate
3. Coupon rate (answered)
4. Rate of return
5. Yield

2. What is the inverse relationship between bond prices and bond yields?

1. As prices go up, yields go up
2. As prices go down, yields go down
3. As prices go up, yields go down (answered)
4. None of the above or below

3. As the federal reserves raises interest rates, mortgage rates tend to go ______

1. Down and then steady
2. Sideways
3. Up
4. Down and then up

4. Which risk below do not influence the price and yield of bonds?

1. Default risk
2. Real estate risk (answered)
3. Maturity risk
4. Liquidity risk

5. The banking separation bill named the a)______ act was enacted in b)____.

1. a) federal reserve b)1933
2. a) glass steagall b) 1933 (answered)
3. a) gramm bliley leah b)1933
4. a) glass steagall b) 1913

6. Duration gap measures the degree of interest rate risk in the flow of income

1. True
2. False (answered)

7. Which is most valuable, if they all have the same maturity?

1. 15% treasury coupon bond (answered)
2. 15% corporate bond
3. 5% treasury coupon bond
4. 5% corporate bond

8. Which is more valuable?

1. 1 million cash (answered)
2. 1 million face value B corporate bond
3. 1 million treasury bill with the maturity of 1 year
4. 1 million face value AAA corporate bond with a 3% coupon , 10 year maturity

9. Current issues. The federal reserve recently announced that it would slow down its bond purchasing program

1. True (ANSWERED)
2. False

10. Choose the one that is not part of the bank credit risk management?

1. Screening
2. Monitoring
3. Collateral requirement
4. Compensating balances
5. Neighborhood watch management (Answered)

11. The number of banks in the U.S. is ____ the industrialized countries.

1. The largest among (answered)
2. The average among
3. Comparable to those in
4. The smallest among