Exam 4: Determining Interest Rates

Which of the following financial assets has both the highest risk and highest return for the period of 1926-2009?

Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated.The likely result would be

The supply curve for loanable funds would increase due to a(n)

The formula for the yield to maturity,i,on a discount bond is

The demand curve for bonds would be reduced by

If the expected gains on stocks rise,while the expected returns on bonds do not change,then

As wealth increases in the economy,we would expect to observe

A closed economy is one that

Suppose that Congress passes an investment tax credit.The likely result will be

If the federal government decreases its spending and doesn't decrease taxes,the bond supply shifts to the

The demand for bonds is

Since all assets typically do not move together,how can investors typically reduce risk?

The demand curve for bonds would be shifted to the left by an

During an economic recession,

How should a financial plan of an older saver differ from that of a younger saver?

The demand curve for loanable funds slopes down because

During most of the time in recent decades,the domestic government sector was

A portfolio is a

During 2000,the government repurchased $30 billion in U.S.Treasury bonds outstanding.This was the first time this had been done since the administration of Herbert Hoover in the early 1930s.Analyze the impact of this repurchase on the bond market.

Which of the following is the most likely explanation of Japan's very low market interest rates in the early 2000s?