Bonds
with relatively low risk of default are called ________ securities
and have a rating of Baa  


(or
BBB) and above; bonds with ratings below Baa (or BBB) have a higher
default risk and are  


called
________.

5. In Friedmanʹs modern quantity theory, velocity is procyclical because

4. Keynes hypothesized that the speculative component of money demand was primarily determined by the level of

3. The classical economists believed that if the quantity of money doubled,

2. If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity is

1.The velocity of money is

10. Under an exchange-rate targeting rule for monetary policy, a crawling peg

9. In the 1990s this agency has acted like an international lender of last resort to cope with financial instability.

8. A case for capital inflow controls can be made because capital inflows

7. Which of the following is true?

6. Under a fixed exchange rate regime, if a central bank must intervene to purchase the domestic currency by selling foreign assets, then, like an open market sale, this action _____the monetary base and the money supply, causing the interest rate on domestic assets to ______.