1. Debt Securities include commercial paper Treasury bonds and corporate bonds
True false
2. The substantial decline in interest rates during the credit crisis is attributed to which of the following changes in the market for loan able funds
a. an increase in both the supply of and the demand for loan able funds
b. decrease in both the supply and demand for a loan able funds
c decrease in the supply of loan able funds and an increase in the demands
d. an increase in the supply and decrees in the demand
3. The fed purchase of long term treasury securities in recent years were intended to
Reduce long-term interest rates
Reduce interest rates on credit cards and consumer loans
Increase the federal funds rate
Restore confidence in the market for these securities.