If wealth increases, the demand for stocks ________ and that of long-term bonds ________, everything else held constant.

The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to

If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 percent, the expectations theory predicts that the bond with the lowest interest rate today is the one with a maturity of

Open market sales shrink ________ thereby lowering ________.

In general, banks make profits by selling ________ liabilities and buying ________ assets.

As their relative riskiness ________, the expected return on corporate bonds ________ relative to the expected return on default-free bonds, everything else held constant.

Asset transformation can be described as

Both ________ and ________ are monetary liabilities of the Fed.

EXTRA CREDIT 2pionts  Describe how physical properties and mechanical properties of metal differ, and give 2 examples of each.  

What makes the Federal Reserve so unique compared to other central banks around the world is its