Explain what a yield curve is. Find and attach a copy of the most current yield curve you are able. What does today's yield curve imply? Graph the recessionary Wealth Effect (income effect) in the Bond Market. Make sure to label everything and explain the effect on interest rates, shifts in the curves, the quantity of bonds, and the price of bonds. What are FNMA (Fannie Mae), FHLMC (Freddie Mac), and why is GNMA (Ginnie Mae) different from FNMA and FHLMC? When the price level rises, the demand curve for money shifts to the _____ and the interest rate _____. a. right; falls b. left, falls c. right; rises d. left; rises Diversification is beneficial because: a) it makes a person's portfolio of securities more liquid. b) it raises the expected return on a person's portfolio of securities. c) it can reduce a person's risk. d) it increases a person's wealth. The primary assets of a pension fund are a) money market instruments. b) corporate bonds and stock. c) consumer and business loans. d) mortgages. e) all of the above are primary assets of pension funds