1. A floating rate bond is generally considered safer than a fixed coupon bond in terms of inflation risk. a. True b. False
2. If a firm collects an account receivable, its cash ratio will rise. a. True b. False
3. The federal funds market is a market in which commercial banks may buy or sell excess reserves. a. True b. False
4. Bonds that are secured by collateral are generally considered to be safer than other bonds issued by the firm. a. True b. False