Checks Are

question 493

Multiple Choice

Checks are

• A) only part of M2 but not part of M1.
• B) part of M1 but not part of M2.
• C) not money.
• D) the largest component of the money supply.

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Definitions:

Coupon

The interest rate paid by a bond, usually expressed as a percentage of the bond's face value.

Cash Flow Matching

A form of immunization, matching cash flows from a bond portfolio with those of an obligation.

Immunization

A strategy in fixed income investing that aims to make a portfolio's duration and interest rate risk match its liability obligations.

Duration Matching

An investment strategy where the durations of assets and liabilities are aligned to reduce the risk of changes in interest rates affecting the net worth.