Question: Please answer the following questions as soon as possible Please choose the best suitable option Q86. U.S. Treasury bonds 1. are subject to fluctuations in

Please answer the following questions as soon as possible

Please choose the best suitable option

Q86. U.S. Treasury bonds 1. are subject to fluctuations in their market prices, so they are risky investments 2. have constant yields to maturity, so they are not risky investments 3. carry no risk of default, so they are not risky investments 4. have constant coupon rates, so they are not risky investments

Q87. The most commonly used claim in financial markets is 1. equity, which requires the bornwer to repay the principal of the loan plus interest 2. equity, which is a claim to share in the profits and assets of a firm 3. debt, which requires the borrower to repay the principal of the loan plus interest 4. debt, which is a claim to share in the profits and assets of a firm

Q88. Despite its costs, governments typically resist eliminating inflation because 1. governments lack the knowledge of how to eliminate inflation 2. doing so would result in lost output and jobs when the economy is near full employment 3. the increase in menu costs because of inflation increases the governments tax revenues 4. as net lenders, governments benefit from inflation

Q89. Which of the following is an important problem facing the Fed? 1. It has been given responsibility for meeting policy goals,but true control over monetary policy remains with Congress. 2. It lost effective control over the monetary base. 3. It has been given responsibility for meeting policy goals,but true control over monetary policy remains with the President. 4. It has goals for economic growth and price stability but no direct control over real output or the price level.

Q90. When borrowers possess information about their oppertunities or activities that they don't disclose to lenders or creditors, a problem aris 1. asymmetric information 2. undiversified risk 3. illiquidity 4. communication

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