In this blog you will find the correct answer of the Coursera quiz Understanding Financial Markets coursera week 4 Quiz mixsaver always try to brings best blogs and best coupon codes
 

week- 4

Graded quiz on the content of Module 4

 

  1. Which of these goals is/are typically part of a central bank’s mandate?

 

  • Guaranteeing gender equality in terms of wages
  • Maintaining healthy public finances
  • Providing financial aid to developing countries
  • Maintaining price or currency stability

2. Which of the following statements is/are true?

 

  • A rise in interest rates typically causes the economy to slow down.
  • Central banks can “kill two birds with one stone”.
  • Inflation is typically passed from producers to consumers because the higher cost of production inputs cause the price of final products to increase.
  • A central bank can promote growth and reduce inflation at the same time by manipulating interest rates alone.

3. Which of the following steps of the traditional boom / bust cycle have been replaced by the numbers 1, 2 and 3 in this picture?

 

Interest rates rise
Increased demand for employment and raw materials
Staff wages and raw materials prices rise

Increased demand for employment and raw materials
Interest rates rise
Staff wages and raw materials prices rise

Staff wages and raw materials prices rise
Increased demand for employment and raw materials
Interest rates rise

Increased demand for employment and raw materials
Staff wages and raw materials prices rise
Interest rates rise

Staff wages and raw materials prices rise
Interest rates rise
Increased demand for employment and raw materials

Interest rates rise
Staff wages and raw materials prices rise
Increased demand for employment and raw materials

4. Which of these statements characterize(s) a “normal” yield curve?

 

  • It is indicative of a restrictive monetary policy being conducted by the central bank.
  • It is indicative of an easy monetary policy being conducted by the central bank.
  • The yield of bonds with a shorter maturity are higher than that of bonds with a longer maturity.
  • The yield of bonds with a shorter maturity are lower than that of bonds with a longer maturity.
  • The yield of bonds of all maturity are the same.

5. Which of the following statements is/are true?

 

  • You should not increase the share of bonds in your portfolio when you expect high inflation in the future because the revenue you get from them does not increase with inflation.
  • You should increase the share of bonds in your portfolio when you expect high inflation in the future because the revenue you get from them increases with inflation.
  • High inflation is generally good for equities and bonds.
  • High inflation is generally bad for equities and bonds.

6. Which of the following statements correspond(s) to a flattening of a “normal” yield curve?

 

  • Short term rates increase more than long term rates.
  • Short term rates increase less than long term rates.
  • Short term rates decrease more than long term rates.
  • Short term rates decrease less than long term rates.

7. Suppose the yield curve is upward sloping. Then, short term rates decrease and long term rates increase. Which of the following statements is/are true?

 

  • The yield curve has steepened.
  • The yield curve has flattened.
  • The yield curve is now downward sloping.
  • The yield curve is still upward sloping.

 

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