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  • With an interest rate of 10 percent, the present value of a security that pays $1,100 next year and $1,460 four years from now is approximately #151
  • With an interest rate of 8 percent, the present value of $100 received one year from now is approximately #152
  • As the price of a bond ________ and the expected return ________, bonds become more attractive to investors and the quantity demanded rises. #153
  • ________ is the total resources owned by an individual, including all assets. #154
  • A ________ prefers stock in a less risky asset than in a riskier asset. #155
  • The demand for an asset rises if ________ falls. #156
  • Interest rates are important to financial institutions since an interest rate increase ________ the cost of acquiring funds and ________ the income from assets. #157
  • The higher the standard deviation of returns on an asset, the ________ the asset's ________. #158
  • In a recession when income and wealth are falling, the demand for bonds ________ and the demand curve shifts to the ________. #159
  • During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to the ________. #160
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