Please help with these questions. Thank you ECONOMICS MONEY & Banking - True or

Question

Please help with these questions. Thank you

ECONOMICS MONEY & Banking - True or False? 1) The U.S. Treasury yield curve is currently upward sloping. 2) The nominal yield to maturity on the five-year treasury securities is greater 3) The difference between the yield to maturity on the 30-year treasury security 4) Investors demand a premium on fixed income securities that will than the real yield to maturity on the five-year treasury security. and the 1-year treasury security is currently over 100 basis points. compensate them for inflation. This is why the nominal yield exceeds the real yield 5) Based on the FOMC statement of June 13, 2018 we learn that the FOMC does not take the inflation rate into account when setting the target federal funds rate. 6) If the yield curve shifts up in (interest rates along the curve all change by the same number of basis points) and the bank is funded with liabilities that have shorter maturities than its assets; the value of the bank will decline.

Explanation / Answer

The answers for the following questions are:

1.TRUE

2.TRUE

3.FALSE

4.TRUE

5.TRUE

6.FALSE

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