Which
of the following $1,000 face-value
securities has the highest yield to maturity?  


A)

Fear
of a major recession causes stock prices to fall, everything else
held constant, which in turn causes consumer spending to

The
stock market is important because it is

Everything else held constant, an increase in interest rates on
student loans

The
interest rate on Baa (medium quality) corporate bonds is_______ , on
average, than other interest rates, and the spread between it and
other rates became ________in the 1970s.

The
price paid for the rental of borrowed funds (usually expressed as a
percentage of the rental of $100 per year) is commonly referred to as
the

Financial
markets promote economic efficiency by

10. Since the European Central Bankinterest on reserves, banks have acost of complying with reserve requirements when compared to banks complying with the reserve requirements of the Federal Reserve.

9. The Fedʹs lender-of-last-resort function

8. The discount rate is

7.If the Fed expects currency holdings to rise, it conducts open market ______to offset the expected _______in reserves.