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The Fed changes reserve requirements from 10% to 9%, thereby creating $900 million in excess reserves. The total change in deposits (with no drains) would be 

The higher the level of interest rates, the greater a bond’s price sensitivity to interest rate changes. 

The use of credit derivatives by banks was appealing to them for the following reasons:I. It was a way to remove and decrease their exposure to credit risk.II. It was an opaque, relatively unregulated market.III. The spreads that they earned were high (return on a CDS minus return on a T-Bill).IV. All of their net positions were balance sheet items (i.e. all transactions were on their balance sheet). 

Fed funds are short-term unsecured loans while repos are short-term secured loans. 

In theory, a decrease in reserve requirements will lead to an:

The major asset on the Fed’s balance sheet by 2010 was (hint: think what were they buying up): 

The relationship between maturity and yield to maturity is called the __________________. 

Classify each of the following in terms of their effect on interest rates (increase or decrease):I. Investments become more risky across the boardII. The Federal Reserve increases the money supplyIII. Total household wealth increases 

The following are all TRUE about options except which below (i.e. mark the one false statement).    

In regard to both of our texts and lectures/responses what have you LEARNED that speaks into your own role as a present and/or future leader? (this can be a reflective response at 60-120 words)