Under the Gold Standard, If a Country Imported More Than

question 104

Multiple Choice

Under the gold standard, if a country imported more than it exported, the

• A) deficit had to be covered with its inventory of gold.
• B) deficit was balanced with a surplus in its capital account.
• C) deficit was balanced by increasing the money supply.
• D) trade deficit would have to be balanced with a fiscal budget surplus.

Comprehend the factors that influence the yield to maturity and expected returns on bonds.

Recognize the impact of bond features (such as call provisions, sinking funds, and convertibility) on required coupon rates.

Identify the considerations for rating agencies in assessing bond default risk.

Understand the conditions under which companies are likely to call their bonds.

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