Questions from Financial Markets

Q: Discuss the causes of the major periods of inflation in American history

Discuss the causes of the major periods of inflation in American history.

Q: 1. The U.S. government issues which of the

1. The U.S. government issues which of the following money market securities? a. Treasury bills b. Commercial paper c. Negotiable certificates of deposit d. Banker’s acceptances 2. Who issues co...

Q: 1. A firm’s decision to reduce dividends a. is

1. A firm’s decision to reduce dividends a. is usually not well received by investors. b. is good news as the firm will reinvest funds to finance firm expansion. c. is an indication that the firm has...

Q: Explain the process by which price changes may be initiated by a

Explain the process by which price changes may be initiated by a general change in costs.

Q: How can a change in the money supply lead to a change

How can a change in the money supply lead to a change in the price level?

Q: What is meant by the speculative type of inflation?

What is meant by the speculative type of inflation?

Q: What is meant by default risk and a default risk premium?

What is meant by default risk and a default risk premium?

Q: How can a default risk premium change over time?

How can a default risk premium change over time?

Q: Identify major periods of rising interest rates in U.S.

Identify major periods of rising interest rates in U.S. history, and describe some of the underlying reasons for these interest rate movements.

Q: How did the Fed contribute to the recent historically low interest rates

How did the Fed contribute to the recent historically low interest rates?