Briefly explain how banks with a disproportionate amount of long-term loans on the asset side of their balance sheet while funding those loans with a disproportionately large amount of short-term liabilities would be impacted by a sudden and sharp increase in interest rates.  In addition, briefly note how a bank facing this situation could improve its balance sheet to mitigate its sensitivity to changes in interest rates?

The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry.

The three factors that explain the risk structure of interest rates are ______________________.

If you have a position where you might be obligated to buy pounds, you are:

An increase in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the required yield of Treasury bonds, everything else held constant.

There is ________ for any zero-coupon bond whose time to maturity matches the holding period.

What group emerged from this period with the most control over the governance of England (and, later, Great Britain)?

Which of the following is true regarding the euro?

Given that the Fed has most control over the portion of the monetary base (MB) that does not include the level of borrowed reserves (BR), Fed actions directed toward influencing the monetary base (MB) will often want to focus on the impact of open market operations on [answer1]. Accordingly, since MB = MBn + BR and understanding that the Fed does not fully control BR, an above expected increase in BR will result in a [answer2] required increase in  MBn in order to arrive at a given desired increase in the monetary base (MB).

Assume the following information:   Exchange rate of Japanese yen in U.S. $ = $.011 Exchange rate of euro in U.S. $ = $1.40 Exchange rate of euro in Japanese yen = 140 yen   What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?