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[MB] Chapter 5: The Behavior of Interest Rates

Authored by Dung Nguyen

English

1st Grade

Used 2+ times

[MB] Chapter 5: The Behavior of Interest Rates
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144 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Pieces of property that serve as a store of value are called

assets
units of account
liabilities
borrowings

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Of the four factors that influence asset demand, which factor will cause the demand for all assets to increase when it increases, everything else held constant?

wealth
expected returns
risk
liquidity

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

If wealth increases, the demand for stocks ________ and that of long-term bonds ________, everything else held constant.

increases; increases
increases; decreases
decreases; decreases
decreases; increases

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Everything else held constant, a decrease in wealth

increases the demand for stocks
increases the demand for bonds
reduces the demand for silver
increases the demand for gold

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

An increase in an asset's expected return relative to that of an alternative asset, holding everything else constant, ________ the quantity demanded of the asset.

increases
decreases
has no effect on
erases

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Everything else held constant, if the expected return on ABC stock rises from 5 to 10 percent and the expected return on CBS stock is unchanged, then the expected return of holding CBS stock ________ relative to ABC stock and the demand for CBS stock ________.

rises; rises
rises; falls
falls; rises
falls; falls

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock ________ relative to U.S. Treasury bonds and the demand for GE stock ________.

rises; rises
rises; falls
falls; rises
falls; falls

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