Please be sure to give proper credit when presenting non-original material in the essay questions (4, 12, 17, and 29). You don't need to adhere to APA style citations, but you do need to credit non-original ideas. If you are going to cite the text, just a quick (Mishkin, p. xxx) 1. A plot of the interest rates on default-free government bonds with different terms to maturity is called (a) a yield curve (b) a default-free curve (c) an interest-rate curve (d) A risk-structure-curve 2. The higher a securities price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market. (a) More; secondary (b) Less ; secondary (c) Less ; primary (d) More ; primary 3. he U.S. banking system is considered to be a dual system because (a) banks offer both checking and savings accounts (b) It actually includes both banks and thrift institutions. (c) It was established before the Civil War, requiring separate regulatory bodies for the North and South. (d) It is regulated by both state and federal governments. 4. Keynes titled his famous book The General Theory of Employment, Interest and Money, suggesting that the case of an economy reaching long-term equilibrium at full-employment was just a special case that could incorporated into his general theory. He argued that it is possible for the economy to reach a long-run equilibrium at less than full employment, as occurred in the US in the 1930s. His theory, as it relates to countercyclical fiscal policy is controversial to this day. Interest in Keynes' theory was rekindled in the wake of the financial crisis of 2008. Discuss the US policy response to the 2008 financial crisis in terms of Keynesian theory, and how the US experience of The Great Depression informed the Fed's response in 2008-current. You may wish to include a discussion of fiscal policy as well. 5. The amount of assets per dollar of equity capital is called the (a) equity ratio (b) Equity multiplier (c) Asset multiplier. (d) Asset ratio. 6. Financial markets have the basic function of (a) Assuring that the swings in the business cycle are less pronounced. (b) Assuring that governments need never resort to printing money. (c) Getting people with funds to lend together with people who want to borrow funds. (d) Providing a risk-free repository of spending power. 7. When the interest rate is ________, ________ investments in physical capital will earn more than the cost of borrowed funds, so planned investment spending is ________. (a) low; few; high (b) high ; many ; high (c) low ; many ; low (d) high ; few ; low (e) high ; few high 8. Which of the following would a bank not hold as insurance against the highest cost of deposit outflow-bank failure? (a) Bank capital (b) Mortgages (c) Secondary reserves (d) Excess reserves 9. Which of the following are true concerning the distinction between interest rates and returns? (a) The return can be expressed as the sum ...