If the Federal Reserve sells more Treasury securities, overall interest rates go up.( )9. If the Federal Reserve sells more Treasury securities, money supply goes up.( )10. The Federal Reserve has the power to fix the min rate of interest that commercialbanks may pay on savings account. ( )11. Corporate bonds are riskier than US Treasury, so they pay default risk premiumover what Treasury pays to stay competitive in the market. ( )12. Accounting equation refers to the relations between line items on the balancesheet, and can be summarized as “Assets = (Liabilities + Equity) – (Debt + Networth)”. ( )13. Income statement represents the process to arrive at net profit through the firm’snormal operation. ( )14. For most companies primary source of income is investment income
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