1.The velocity of money is

A
________ yield curve predicts a future increase in inflation.

According
to the segmented markets theory of the term structure

If
the expected path of one-year
interest rates over the next five years is 4 percent, 5 percent, 7  


percent,
8 percent, and 6 percent, then the expectations theory predicts that
todayʹs
interest rate  


on
the five-year
bond is

Typically,
yield curves are

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
________.

)
Which of the following statements are true?

Which
of the following statements are true?

An
increase in default risk on corporate bonds ________ the demand for
these bonds, but  


________
the demand for default-free
bonds, everything else held constant.

The
spread between the interest rates on bonds with default risk and
default-free
bonds is  


called
the

When
the growth rate of the money supply increases, interest rates end up
being permanently  


lower
if