1) The Federal Reserve can increase high powered money by:
Buying assets from the banking system
Increasing risk based capial requirements
Selling assets to the banking system
Lowering leverage ratios
2) Real Interest Rates are currently higher than nominal interest rates.
True/False
3) The yield on 30-year government bonds is currently more than 200 basis points higher than the yield on 1-month treasury bills.
True/False
4) Bank capital protects:
The FDIC, uninsured depositors, creditors, and owners.
The FDIC, uninsured depositors, creditors, and taxpayers.
Tax payers and the Federal Reserve The FDIC and Taxpayers.
Only insured depositors.