Bond A and Bond B have identical characteristics except that Bond A has a higher interest rate. Which bond has a higher credit risk?

Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of

A) $250,000. B) $125,000. C) $62,500. D) $0.

When the price of a bond rises, the interest rate paid on the bond also rises.

a. true b. false