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Banks generally ____ loans and ____ their purchases of low-risk securities when the economy is weak.

For a given par value of a bond, the higher the investor’s required rate of return is above the coupon rate, the  (ie A 3 year bond with a 5% coupon and a yield of 8% versus same bond with a 5% coupon and a yield of 10%)

For most banks, the average duration of assets ____ the average duration of liabilities, so the duration gap is ____.

____ is not a characteristic used by bank regulators to rate banks.

Credit unions obtain most of their funds from _____________.

Changes in ________ are a factor affecting the value of a commercial bank over which the bank has some control.

____ bonds require the owner to clip coupons attached to the bonds and send them to the issuer to receive coupon payments.

If the level of inflation is expected to ____, there will be ____ pressure on interest rates and ____ pressure on the price of the bonds.

Municipal revenue bonds are ____. Municipal general obligation bonds are ________.

The Garn-St Germain Act of 1982 ____________.