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17. In the late 1990s and early 2000s the treasury ran a surplus, during this period a. The treasury department issued a record amount of debt b. The fed issued a record amount of debt c. The treasury paid down the supply of treasury debt outstanding d. The fed purchased trillions of dollars of treasury securities 18. How are treasury securities sold a. The treasury department auctions b. The fed board auctions c. The primary dealers auction d. The fed band in NY as an agent for the treasury auctions 19. The difference between a 10yr Trump casino bond and a 10 yr Treasury a. Is called quantity spread or risk premium b. Is called the yield curve c. Helps predict recessions d. Is an example of why the yield curve is upward sloping 20. Default risk refers to a. The inability to sell a bond without causing a measurable change in the price of a bond b. Has to do with the liquidity of a bond c. Helps predict recessions d. Is the risk that the issuer of a bond will not be able to make timely payments on the bond 21. Liquidity risk refers to a. The inability to sell a bond without causing a measurable change in the price of a bond b. Has to do with the risk of default c. Helps predict recessions d. Is the risk that the issuer of a bond will not be able to make timely payments on the bond 22. A yield curve is inverted when a. Short term interest rates are below long term interest rates b. Short term interest rates are equal to long term interest rates c. Short term interest rates are above long term interest rates d. When corporate bond yields are below treasury yields 23. An inverted yield curve a. Is a harbinger of an impending pick up in the pulse of economic activity b. Is necessary to maintain GDP growth that is consistent with an economy's potential c. Is a harbinger of an impending declaration in the pulse of activity, possible recession d. Occurs when the fed is easing policy

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