Which of the following is a key difference between a nonfinancial firm's balance sheet and a bank's balance sheet?

A.

Firms cannot directly hold bank reserves

B.

Equity in a bank's balance sheet is typically called "bank capital"

C.

All of these answers are correct

D.

Loans are usually an asset of banks but a liability of firms

Which of the following is NOT true when it comes to bitcoin and the functions of money?

A.

Bitcoin could be considered money because it can be used as a unit of account

B.

Bitcoin could be considered money even though it is not legal tender

C.

Bitcoin could be considered money because people use it as a medium of exchange

D.

Bitcoin could be considered money because it is a very good store of value

What is the yield to maturity of a bond that pays a coupon of 10 USD per year forever, and is currently priced at 100 USD? (Such a bond is sometimes called a "consol". It has no face value, and only a coupon payment that continues indefinitely.)

A.

10%

B.

There is not enough information provided to determine the yield to maturity

C.

1%

D.

0.1%