12) Govomment secunitios dealer frequently engage in ropos to A) manage liquidity. 10) take advantage of anticipated shanger in interest rater, C) Iend or borrow for day or two with what lis cesentilly a oollateralized loan: D) do all of the above. 13) Lower turffr and quotas cause a country's curcency to \( \qquad \) In the \( \qquad \) run. A) deprectates bhort B) apprectate; hort C) depreciate: long D) apprectate: long 14) In a direct placement 1) the isster bypasses the dealer and sells indireetly to the end invertor. B) the dealer selle direetly to the end investor. c) Tho isever bypasser the dealer and sells direaty to the end invertor.

\( \textbf{12)} \) Government securities dealers typically use repos to (i) manage their liquidity needs, (ii) profit from anticipated interest‐rate changes, and (iii) to lend or borrow over very short periods with a collateralized transaction. Hence, the answer is \[ \textbf{(D) do all of the above.} \] \( \textbf{13)} \) When tariffs and import quotas are lowered, domestic prices tend to fall relative to foreign prices. According to purchasing power parity, a lower domestic price level raises the real value of the domestic currency; that is, the currency is expected to appreciate in the long run. Therefore, the correct match is \[ \textbf{(D) appreciate; long.} \] \( \textbf{14)} \) In a direct placement, the issuer chooses to sell its securities directly to the end investor, thereby bypassing the traditional dealer‐broker intermediation. This means the issuer “sells directly” rather than “indirectly” or involving a dealer. Thus, the correct answer is \[ \textbf{(C) the issuer bypasses the dealer and sells directly to the end investor.} \]