Question: Inflation is expected to increase steadily over the next 10 years, there is a positive maturity risk premium on both Treasury and corporate bonds, and the real risk-free rate of interest is expected to remain constant. Which of the following statements is CORRECT?
a. The yield on 10-year Treasury securities must exceed the yield on 7-year Treasury securities.
b. The yield on any corporate bond must exceed the yields on all Treasury bonds.
c. The yield on 7-year corporate bonds must exceed the yield on 10-year Treasury bonds.
d. The stated conditions cannot all be true—they are internally inconsistent.
e. The Treasury yield curve under the stated conditions would be humped rather than have a consistent positive or negative slope.
Correct Answer
e. The Treasury yield curve under the stated conditions would be humped rather than have a consistent positive or negative slope.
Answer:
Question: Which of the following statements is CORRECT?
a. Downward-sloping yield curves are inconsistent with the expectations theory.
b. The actual shape of the yield curve depends only on expectations about future inflation.
c. If the pure expectations theory is correct, a downward-sloping yield curve indicates that interest rates are expected to decline in the future.
d. If the yield curve is upward sloping, the maturity risk premium must be positive and the inflation rate must be zero.
e. Yield curves must be either upward or downward sloping—they cannot first rise and then decline.
Correct Answer
c. If the pure expectations theory is correct, a downward-sloping yield curve indicates that interest rates are expected to decline in the future.
Answer:
Question: Short Corp just issued bonds that will mature in 10 years, and Long Corp issued bonds that will mature in 20 years. Both bonds promise to pay a semiannual coupon, they are not callable or convertible, and they are equally liquid. Further assume that the Treasury yield curve is based only on the pure expectations theory. Under these conditions, which of the following statements is CORRECT?
a. If the yield curve for Treasury securities is flat, Short’s bond must under all conditions have the same yield as Long’s bonds.
b. If the yield curve for Treasury securities is upward sloping, Long’s bonds must under all conditions have a higher yield than Short’s bonds.
c. If Long’s and Short’s bonds have the same default risk, their yields must under all conditions be equal.
d. If the Treasury yield curve is upward sloping and Short has less default risk than Long, then Short’s bonds must under all conditions have a lower yield than Long’s bonds.
e. If the Treasury yield curve is downward sloping, Long’s bonds must under all conditions have the lower yield.
Correct Answer
d. If the Treasury yield curve is upward sloping and Short has less default risk than Long, then Short’s bonds must under all conditions have a lower yield than Long’s bonds.
Answer:
Question: While there is no technology to reduce CO₂ from a car’s exhaust, we can make cars pollute less by making them more fuel efficient. By using today’s best technology, car makers could dramatically increase the fuel economy of their cars and trucks. In fact, off-the-shelf technology can change the nation’s best-selling SUV, the Ford Explorer, from a 19 mpg gas guzzler to an efficient 34 mpg vehicle. If we are to make any progress in slowing global warming, we must make our cars go farther on a gallon of gas.
Answer Options:
a. Argument; conclusion: While there is no technology … more fuel efficient.
b. Nonargument.
c. Argument; conclusion: In fact, off-the-shelf technology … 34 mpg vehicle.
d. Argument; conclusion: By using today’s best technology … cars and trucks.
e. Argument; conclusion: If we are to make any progress … a gallon of gas.
Answer: b. Nonargument.
Question: Developing an AIDS vaccine is not impossible, as some skeptics claim. Research suggests that the human immune system is better at fighting HIV than was originally thought. Most of those infected suppress the virus for years without developing AIDS. A small number never contract the virus despite repeated exposures. If we can figure out the mechanism that accounts for this, we’ll have clues about how to engineer a vaccine.
Answer Options:
a. Argument; conclusion: If we can figure out the mechanism … engineer a vaccine.
b. Nonargument.
c. Argument; conclusion: Most of those infected … without developing AIDS.
d. Argument; conclusion: Research suggests … than was originally thought.
e. Argument; conclusion: Developing an AIDS vaccine … skeptics claim.
Answer: e. Argument; conclusion: Developing an AIDS vaccine … skeptics claim.
Question: Geology can be divided into two major time-related disciplines: physical geology and historical geology. Physical geology is the study of the materials the planet is composed of and the present day processes that operate on the surface and within the earth’s deeper layers. Historical geology is the study of the earth’s 4.6 billion year history, its formation, development, and evolution. Historical geologists strive to create a time-line of events that have occurred since the earth’s formation.
Answer Options:
a. Nonargument.
b. Argument; conclusion: Historical geologists … since the earth’s formation.
c. Argument; conclusion: Physical geology … the earth’s deeper layers.
d. Argument; conclusion: Geology can be divided … historical geology.
e. Argument; conclusion: Historical geology … development, and evolution.
Answer: a. Nonargument.
Question: Nicotine is addictive because its chemical structure is so similar to the neurotransmitter acetylcholine that once inside the brain it unlocks several other chemicals. One of these chemicals is dopamine, which produces a highly pleasant sensation. Another is adrenaline, which increases alertness. Yet a third is serotonin, which improves one’s mood. When people are deprived of these chemicals, they naturally want more, and this leads to addiction.
Answer Options:
a. Argument; conclusion: When people are deprived … leads to addiction.
b. Argument; conclusion: Nicotine is addictive.
c. Argument; conclusion: One of these chemicals is dopamine … pleasant sensation.
d. Nonargument.
e. Argument; conclusion: Its chemical structure … unlocks several other chemicals.
Answer: b. Argument; conclusion: Nicotine is addictive.
Question: Which question has the highest priority when assessing a newly admitted patient with a history of alcohol abuse?
Answer Options:
a. “Have you ever had blackouts?”
b. “When did you have your last drink?”
c. “Has drinking caused you any problems?”
d. “When did you decide to seek treatment?”
Answer: b. “When did you have your last drink?”
Question: A patient in an alcohol treatment program says, “I have been a loser all my life. I’m so ashamed of what I have put my family through. Now, I’m not even sure I can succeed at staying sober.” Which nursing diagnosis applies?
Answer Options:
a. Chronic low self-esteem
b. Situational low self-esteem
c. Disturbed personal identity
d. Ineffective health maintenance
Answer: a. Chronic low self-esteem
Question: Which documentation indicates that the treatment plan for a patient in an alcohol treatment program was effective?
Answer Options:
a. Is abstinent for 10 days and states, “I can maintain sobriety one day at a time.” Spoke with employer, who is willing to allow the patient to return to work in 3 weeks.
b. Is abstinent for 15 days and states, “My problems are under control.” Plans to seek a new job where coworkers will not know history.
c. Attends AA daily; states many of the members are “real” alcoholics and says, “I may be able to help some of them find jobs at my company.”
d. Is abstinent for 21 days and says, “I know I can’t handle more than one or two drinks in a social setting.”
Answer: a. Is abstinent for 10 days and states, “I can maintain sobriety one day at a time.” Spoke with employer, who is willing to allow the patient to return to work in 3 weeks.
Question: Which assessment findings support a nurse’s suspicion that a patient has been using inhalants?
Answer Options:
a. Pinpoint pupils and respiratory rate of 12 breaths per minute
b. Perforated nasal septum and hypertension
c. Drowsiness, euphoria, and constipation
d. Nosebleed, muscle wasting, and impaired hearing
Answer: d. Nosebleed, muscle wasting, and impaired hearing
Question: A patient undergoing alcohol rehabilitation decides to accept disulfiram therapy to avoid impulsively responding to drinking cues. Which information should be included in the discharge teaching for this patient? (Select all that apply.)
Answer Options:
a. Avoid aged cheeses.
b. Read labels of all liquid medications.
c. Wear sunscreen and avoid bright sunlight.
d. Maintain an adequate dietary intake of sodium.
e. Avoid breathing fumes of paints, stains, and stripping compounds.
Answer: b. Read labels of all liquid medications.
e. Avoid breathing fumes of paints, stains, and stripping compounds.
Question: A nurse can assist a patient diagnosed with addiction and the patient’s family in which aspects of relapse prevention? (Select all that apply.)
Answer Options:
a. Rehearsing techniques to handle anticipated stressful situations
b. Advising the patient to accept residential treatment if relapse occurs
c. Assisting the patient to identify life skills needed for effective coping
d. Isolating self from significant others and social situations until sobriety is established
e. Teaching the patient about the physical changes to expect as the body adapts to functioning without substances
Answer: a. Rehearsing techniques to handle anticipated stressful situations
c. Assisting the patient to identify life skills needed for effective coping
e. Teaching the patient about the physical changes to expect as the body adapts to functioning without substances
Question: While caring for a patient with a methamphetamine overdose, which tasks are the priorities of care? (Select all that apply.)
Answer Options:
a. Administration of naloxone (Narcan)
b. Vitamin B12 and folate supplements
c. Administration of ammonium chloride
d. Providing a safe environment
e. Reduction of fever
Answer: d. Providing a safe environment
e. Reduction of fever
Question: A patient comes to the clinic with superficial cuts on the left wrist. The patient paces around the room sobbing but cringes when approached and responds to questions with only shrugs or monosyllables. What is the nurse’s best initial statement to this patient?
Answer Options:
a. “Everything is going to be all right. You are here at the clinic, and the staff will keep you safe.”
b. “I see you are feeling upset. I am going to stay and talk with you to help you feel better.”
c. “You need to try to stop crying so we can talk about your problems.”
d. “Let’s set some guidelines and goals for your visit here.”
Answer: b. “I see you are feeling upset. I am going to stay and talk with you to help you feel better.”
Question: While pacing around the room, the patient is asked, “What should the nurse ask to determine the patient’s perception of the precipitating event?”
Answer Options:
a. “Tell me why you were crying.”
b. “How did your wrist get injured?”
c. “How can I help you feel more comfortable?”
d. “What was happening just before you started feeling this way?”
Answer: d. “What was happening just before you started feeling this way?”
Question: A patient comes to the crisis center saying, “I’m in a terrible situation. I don’t know what to do.” The triage nurse can initially assume that the patient is experiencing what?
Answer Options:
a. Suicidal ideations
b. Anxiety and fear
c. Misperceived reality
d. Homicidal ideations
Answer: b. Anxiety and fear
Question: An adolescent comes to the crisis clinic and reports sexual abuse by an uncle. The patient told the parents about the uncle’s behavior, but the parents did not believe the adolescent. What type of crisis exists?
Answer Options:
a. Maturational
b. Adventitious
c. Situational
d. Organic
Answer: b. Adventitious
Question: Which patient statement best suggests they have returned to a pre-crisis level of functioning?
Answer Options:
a. “My boss told me I am doing well and up for a promotion.”
b. “I understand that bad things can happen to really good people.”
c. “Going to my support group regularly has made a big difference.”
d. “I’m much more comfortable asking for help than before my divorce.”
Answer: a. “My boss told me I am doing well and up for a promotion.”