PLEASE ANSWER THE FOLLOWING QUESTIONS AS SOON AS POSSIBLE

PLEASE CHOOSE THE BEST SUITABLE OPTION

Q71. The segmented markets theory 1. has difficulty explaining why yields on instruments of different maturities tend to move together

2. provides a good explanation of why yields on instruments of different maturities tend to move together

3. has difficulty explaining why yield curves usually slope down

4. has difficulty explaining why yield curves usually slope up

Q72. Contagion refers to the 1. tendency for one bad loan in a bank portfolio to cause other loans in the portfolio to go bad 2. spreading of bad news about one bank to include other banks 3. tendency for one bank regulator to become more strict if other bank regulators become more strict 4. tendency for the desire for increased bank regulation to spread from one politician to another

Q73. Which of the following statements is generally true? 1. The degree of independence of a country's central banks has little to do with its inflation rate.

2. Countries with the most independent central banks have the lowest inflation rates. 3. Countries without central banks have the lowest inflation rates. 4. Countries with the least independent central banks have the lowest inflation rates.

Q74. Why do individuals hold money when it does not provide the services that, say, a house does? 1. Money is the most liquid asset. 2. Money is the only form in which wealth may be held. 3. Money is useful in avoiding taxes on certain transactions. 4. Money increases in value faster than other assets.

Q75. If major traders believe the price of a stock should be higher than its current market price 1. their actions will result in the information they possess being incorporated into the price of the stock 2. they should petition the Securities and Exchange Commission to authorize an adjustment in the price of the stock 3. there is little they can do because government regulation precludes their acting on what they know 4. they have an incentive to bid down the price of the stock