Answer T for true or F for false (no explanation necessary) or multiple choice.

a. The Fisher Equation says that inflation increases the nominal rate of interest.

b. The biggest source of funds for U.S. businesses is the stock market.

c. The Federal Reserve just announced that it would not raise the federal funds rate in the future.

d. The recent Great Recession started out with prime loan problems.

e. Lately, bond yields and mortgage rates have been going up precipitously.

f. The more collateral there is backing a loan, the less the lender has to worry about adverse selection.

g. The relationship between maturity and the price of bonds is positive.

h. The NASDAQ is less volatile than the NYSE.

i. Loan sharks worry less about moral hazard in connection with their borrowers than some other lenders do.

j. The stock market is the biggest source of funds for Japanese businesses.