Foundations of Financial Markets and Institutions 金融市场与机构基础
2009年管理学院博士研究生入学参考书目
020205产业经济学:笔试：①《管理学:现代的观点》芮明杰上海人民出版社②《西方经济学》（上、下册）宋承先复旦大学出版社③《产业经济学》芮明杰著，上海财经大学出版社2005年版④《产业发展学》胡建绩财经大学出版社 2007年。
博导口试（复试）指定教材：芮明杰教授：《再创业——企业再创业的理论与策略》芮明杰著，经济管理出版社2004年版；胡建绩教授：《价值发展论》胡建绩著，复旦大学出版社2004年版；郁义鸿教授：《产业经济学》（卷一），石磊、寇宗来著，上海三联书店2003年版；谢百三教授：《证券市场的国际比较》谢百三著，清华大学出版社2003年版《金融经济学》谢百三著，北京大学出版社2003年版；夏大慰教授：《产业组织与政府管制》斯蒂格勒著，上海三联书店1989年《产业经济学与组织》（上、下册）德理克·莫瑞斯等著，张维迎校译，经济科学出版社2001年版；石磊教授：《产业经济学》卷一，石磊、寇宗来著，上海三联书店2003年版,中国人大复印参考文献资料。
120201会计学:会计类：①William Scott, 2006, Financial Accounting Theory, Fourth Edition,Pearson Education Canada;②Ross L. Watts, and Jerold L.Zimmerman, 1986, Positive AccountingTheory, Prentice-Hall, Inc;③ Nobes Ch. & Parker R.,2004, Comparative International Accounting,8th edition, Northeast Financial University;④ Choi F.D.S.,Frost C.A., Meek G.K., 2005, International Accounting, 5th edition, Northeast Financial University;⑤国际会计准则2004(中译本)，中国财政经济出版社,2005；⑥洪剑峭、李志文，2004，《会计学理论—信息经济学的革命性突破》，清华大学出版社；⑦达摩达尔.古扎拉蒂，2005，《经济计量学基础》，中国人民大学出版社。
2024年大学金融学基础课程大纲
2024年大学金融学基础课程大纲I. 课程概述A. 课程名称：金融学基础课程B. 适用对象：大学本科金融专业学生C. 学分：3学分D. 先修课程：无II. 授课目标本课程旨在帮助学生基于金融学的理论和实践，了解和分析金融市场和金融机构的运作原理，培养学生的金融思维和分析能力。
III. 授课大纲单元一：金融市场概述A. 金融市场定义和功能B. 金融资产和金融工具的分类C. 金融市场的参与者和机构单元二：金融机构与金融中介A. 商业银行及其职能B. 非银行金融机构的分类与特点C. 金融中介的角色与作用单元三：金融市场与金融机构监管A. 监管机构的职责和作用B. 监管制度与金融风险防范C. 国际金融监管的发展与合作单元四：金融产品与金融创新A. 金融产品分类与特点B. 金融创新的定义和影响C. 金融创新与金融市场发展的关系单元五：金融风险管理A. 金融风险的概念与分类B. 风险管理的基本原则C. 风险管理工具与方法单元六：金融市场与宏观经济A. 金融市场与经济增长的关系B. 货币市场和资本市场的功能与作用C. 金融政策与经济政策的协调IV. 教学方法A. 讲授：通过课堂教学，向学生传递金融学基础理论知识和实践案例。
B. 讨论：组织学生进行小组讨论，促进学生之间的交流与互动。
C. 案例分析：引入实际案例，让学生应用所学知识分析和解决问题。
D. 课堂演示：利用多媒体技术展示金融市场和金融机构的运作过程，提升学习体验。
V. 评估方式A. 平时成绩：包括课堂参与、小组讨论、作业完成等。
B. 期中考试：对学生对于金融市场和金融机构基础知识的掌握程度进行测评。
C. 期末考试：对学生对于整体课程内容的理解和应用进行综合评估。
D. 学术论文：要求学生撰写一篇与金融市场或金融机构相关的论文，以展示他们的研究和分析能力。
VI. 参考教材A. Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory and Practice.B. Mishkin, F. S., Eakins, S. G., & Hodgson, P. E. (2015). Financial Markets and Institutions.C. Fabozzi, F. J., Modigliani, F., & Jones, F. J. (2010). Foundations of Financial Markets and Institutions.VII. 课程要求A. 出勤率：学生需按时参加课堂教学，并达到规定的出勤率。
Foundations of Financial Markets and Institutions 金融市场与机构基础-17页文档
Globalization of Financial Markets
In general, easier for investors to move capital internationally
Causes:
Deregulation (liberalization) of financial markets (e.g. currency controls)
The price or value of a financial asset is equal to the present value of all expected future cash flows.
Expected rate of return
Risk of expected cash flow
Technological advances Increased role of institutional investors
(economies of scale)
Classification of Financial Markets
Nature of asset: debt vs. equity markets Maturity: money (short) vs. capital (long)
Role of (Financial) Markets
Provide liquidity: buyers and sellers all in one ‘place’.
price discovery efficient resource allocation
Reduce transactions costs:
金融市场与金融机构基础-Fabozzi-Chapter14
Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones)Chapter 14 Secondary MarketsMultiple Choice Questions1 Function of Secondary Markets1) The key distinction between a primary market and a secondary market is that, in the secondary market, ________.A) funds flow from the seller of the asset to the buyer.B) the issuer of the asset receives funds from the buyer.C) funds flow from the buyer of the asset to the seller.D) the existing issue changes hands in the primary market.Answer: CComment: The key distinction between a primary market and a secondary market is that, in the secondary market, the issuer of the asset does not receive funds from the buyer. Rather, the existing issue changes hands in the secondary market, and funds flow from the buyer of the asset to the seller.Diff: 2Topic: 14.1 Function of Secondary MarketsObjective: 14.1 the definition of a secondary market2) Without a secondary market, issuers would be unable to ________, or they would have to paya higher rate of return, as investors would ________ in compensation for expected illiquidity in the securities.A) sell new securities; increase the discount rateB) sell new securities; decrease the discount rateC) buy new securities; decrease the priceD) sell new securities; increase the priceAnswer: ADiff: 2Topic: 14.1 Function of Secondary MarketsObjective: 14.12 the implications of pricing efficiency for market participants3) Investors in financial assets receive ________.A) illiquidity for their assets.B) information about the assets' fair or consensus values.C) increased the costs of searching for likely buyers and sellers of assets.D) the disadvantage of higher transaction costs.Answer: BComment: Investors in financial assets receive several benefits from a secondary market. Such a market obviously offers them liquidity for their assets as well as information about the assets’ fair or consensus values. Furthermore, secondary markets bring together many interested parties and thereby reduce the costs of searching for likely buyers and sellers of assets. Moreover, by accommodating many trades, secondary markets keep the cost of transactions low. By keeping the costs of both searching and transacting low, secondary markets encourage investors to purchase financial assets.Diff: 2Topic: 14.1 Function of Secondary MarketsObjective: 14.12 the implications of pricing efficiency for market participants2 Trading Locations1) One indication of the usefulness of secondary markets is that they exist throughout ________.A) the United States.B) Europe and Asia.C) each state.D) the world.Answer: DDiff: 1Topic: 14.2 Trading LocationsObjective: 14.2 the need for secondary markets for financial assets2) In the United States, secondary trading of common stock occurs ________.A) in a number of trading locations.B) in Dallas, Texas.C) in each major city.D) None of theseAnswer: ADiff: 1Topic: 14.2 Trading LocationsObjective: 14.2 the need for secondary markets for financial assets3) Which of the below statements is TRUE?A) In the United States, secondary shares are traded on major national stock exchanges (the largest of which is the American Stock Exchange) and regional stock exchanges.B) In the United States, significant trading in stock takes place on the so-called over-the-counter or OTC market, which involves specific geographical locations.C) In the United States, the dominant OTC market for stocks in the United States is the New York Stock Exchange.D) In the United States, some bonds are traded on exchanges, but most trading in bonds in the United States and throughout the world occurs in the OTC market.Answer: DComment: In the United States, secondary trading of common stock occurs in a number of trading locations. Many shares are traded on major national stock exchanges (the largest of which is the New York Stock Exchange) and regional stock exchanges, which are organized and somewhat regulated markets in specific geographical locations. Additional significant trading in stock takes place on the so-called over-the-counter or OTC market, which is a geographically dispersed group of traders linked to one another via telecommunication systems. The dominant OTC market for stocks in the United States is Nasdaq. Some bonds are traded on exchanges, but most trading in bonds in the United States and throughout the world occurs in the OTC market.Diff: 2Topic: 14.2 Trading LocationsObjective: 14.2 the need for secondary markets for financial assets3 Market Structures1) In a continuous market, prices may vary ________.A) because of the basic situation of supply and demand.B) are determined discontinuously throughout the trading day.C) are determined continuously throughout the trading day even if buyers and sellers are not submitting orders.D) with the pattern of orders reaching the market.Answer: DComment: Many secondary markets are continuous, which means that prices are determined continuously throughout the trading day as buyers and sellers submit orders. For example, given the order flow at 10:00 A.M., the market clearing price of a stock on some organized stock exchange may be $70; at 11:00 A.M. of the same trading day, the market-clearing price of the same stock, but with different order flows, may be $70.75. Thus, in a continuous market, prices may vary with the pattern of orders reaching the market and not because of any change in the basic situation of supply and demand.Diff: 2Topic: 14.3 Market StructuresObjective: 14.3 the difference between a continuous and a call market2) ________, orders are grouped together for simultaneous execution at the same price.A) In a bull marketB) In an efficient marketC) In a call marketD) In a bear marketAnswer: CDiff: 2Topic: 14.3 Market StructuresObjective: 14.3 the difference between a continuous and a call market3) Which of the below statements is FALSE?A) In a call market, a market maker holds an auction for a stock at certain times in the trading day (or possibly more than once in a day).B) Many secondary markets are continuous, which means that prices are determined continuously throughout the trading day as buyers and sellers submit orders.C) In a call market, a market maker holds an auction for a stock at the same time each day.D) An auction in a call market may be oral or written.Answer: CComment: In a call market, a market maker holds an auction for a stock at certain times in the trading day (or possibly more than once in a day).Diff: 2Topic: 14.3 Market StructuresObjective: 14.3 the difference between a continuous and a call market4 Perfect Markets1) Perfect market results when ________.A) the number of buyers and sellers is sufficiently small, and all participants are small enough relative to the market so that no individual market agent can influence the commodity's price. B) the number of buyers and sellers is sufficiently large, and all participants are small enough relative to the market so that all individual market agent can influence the commodity's price. C) the number of buyers and sellers is sufficiently large, and all participants are small enough relative to the market so that no individual market agent can influence the commodity's price. D) the number of buyers and sellers is sufficiently small, and all participants are small enough relative to the market so that all individual market agent can influence the commodity's price. Answer: CComment: In general, a perfect market results when the number of buyers and sellers is sufficiently large, and all participants are small enough relative to the market so that no individual market agent can influence the commodity’s price.Diff: 2Topic: 14.4 Perfect MarketsObjective: 14.4 the requirements of a perfect market2) A perfect market results when all buyers and sellers are ________, and the market price is determined where there is ________.A) price-takers; equality of supply and demand.B) price-makers; equality of supply and demand.C) price-takers; inequality of supply and demand.D) price-makers; inequality of supply and demand.Answer: ADiff: 2Topic: 14.4 Perfect MarketsObjective: 14.4 the requirements of a perfect market3) A market is not perfect only because market agents are price takers but is also free of transactions costs and any impediment to the interaction of supply and demand for the commodity. Economists refer to these various costs and impediments as frictions. Frictions include ________.A) bid-ask spreads charged by dealers and order handling and clearance charges.B) taxes (but not on capital gains) and government-imposed transfer fees.C) costs of acquiring information about the financial asset and restrictions on market takers.D) financial liability that a buyer or seller may take and taxes on capital gains.Answer: AComment: A market is not perfect only because market agents are price takers. A perfect market is also free of transactions costs and any impediment to the interaction of supply and demand for the commodity. Economists refer to these various costs and impediments as frictions. The costs associated with frictions generally result in buyers paying more than in the absence of frictions and/or in sellers receiving less commissions charged by brokers. Frictions include: bid—ask spreads charged by dealers.order handling and clearance charges.taxes (notably on capital gains) and government-imposed transfer fees.costs of acquiring information about the financial asset.trading restrictions, such as exchange-imposed restrictions on the size of a position in the financial asset that a buyer or seller may take.restrictions on market makers.halts to trading that may be imposed by regulators where the financial asset is traded.Diff: 2Topic: 14.4 Perfect MarketsObjective: 14.4 the requirements of a perfect market4) This practice of selling securities that are not owned at the time of sale is referred to as________.A) buying short.B) selling short.C) selling long.D) buying and selling simultaneously.Answer: BDiff: 2Topic: 14.4 Perfect MarketsObjective: 14.4 the requirements of a perfect market5) In the absence of an effective short-selling mechanism, security prices will tend to be biased toward the ________, causing a market to depart from the standards of a perfect price-setting situation.A) view of more pessimistic investorsB) view of the market makerC) view of more optimistic investorsD) view of the market takerAnswer: CDiff: 2Topic: 14.4 Perfect MarketsObjective: 14.4 the requirements of a perfect market5 Role of Brokers and Dealers in Real markets1) ________ are necessary to the smooth functioning of a secondary market.A) Inexperienced investorsB) Initial public offeringsC) Investment bankersD) Brokers and dealersAnswer: DDiff: 2Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.6 why brokers are necessary2) Investors need brokers to help ________.A) execute their orders.B) find other parties wishing to sell or buy.C) negotiate for good prices.D) All of theseAnswer: DComment: Investors need brokers to receive and keep track of their orders for buying or selling, to find other parties wishing to sell or buy, to negotiate for good prices, to serve as a focal point for trading, and to execute the orders.Diff: 1Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.6 why brokers are necessary3) Which of the following statements is FALSE?A) It is important to realize that the brokerage activity requires the broker to buy and sell or hold in inventory the financial asset that is the subject of the trade.B) A broker is an entity that acts on behalf of an investor who wishes to execute orders. In economic and legal terms, a broker is said to be an agent of the investor.C) The broker receives, transmits, and executes investors' orders with other investors.D) Services provided by brokers include research, recordkeeping, and advising.Answer: AComment: It is important to realize that the brokerage activity does not require the broker to buy and sell or hold in inventory the financial asset that is the subject of the trade.Diff: 2Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.6 why brokers are necessary4) Which of the following statements is FALSE?A) A real market might also differ from the perfect market because of the possibly frequent event of a temporary imbalance in the number of buy and sell orders that investors may place for any security at any one time.B) An unmatched or unbalanced flow of buy and sell orders causes a problem in that the security's price may change abruptly, even if there has been no shift in either supply or demand for the security.C) The fact of imbalances in buy and sell orders cannot explain the need for the dealer or market maker, who stands ready and willing to buy a financial asset for its own account (to add to an inventory of the financial asset) or sell from its own account (to reduce the inventory of the financial asset).D) An unmatched or unbalanced flow of buy and sell orders causes a problem in that buyers may have to pay higher than market-clearing prices (or sellers accept lower ones) if they want to make their trade immediately.Answer: CComment: The fact of imbalances in buy and sell orders explains the need for the dealer or market maker, who stands ready and willing to buy a financial asset for its own account (to add to an inventory of the financial asset) or sell from its own account (to reduce the inventory of the financial asset).Diff: 3Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making5) The ________ can be viewed as the price charged by dealers for supplying immediacy together with short-run price stability (continuity or smoothness) in the presence of short-term order imbalances.A) bid-ask feeB) bid-ask priceC) bid-ask spreadD) bid-ask imbalanceAnswer: CDiff: 1Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making6) By taking the opposite side of a trade when there are no other orders, the dealer prevents the price from ________ from the price at which a recent trade was consummated.A) materially convergingB) materially divergingC) immaterially concurringD) immaterially divergingAnswer: BDiff: 1Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making7) Dealers also have to be compensated for bearing risk. A dealer's position may involve carrying inventory of a security (a long position) or selling a security that is not in inventory (a short position). There are three types of risks associated with maintaining a long or short position in a given security. Two of these include ________.A) the risk of trading with someone who has inferior information and the expected time it will take the dealer to unwind a position and its uncertainty.B) the uncertainty about the future price of the security and the expected time it will take the dealer to unwind a position and its uncertainty.C) the risk of trading with someone who has inferior information and the uncertainty about the future price of the security.D) the certainty about the future price of the security and the expected time it will take the dealer to unwind a position and its uncertainty.Answer: BComment: First, there is the uncertainty about the future price of the security. A dealer who has a net long position in the security is concerned that the price will decline in the future; a dealer who is in a net short position is concerned that the price will rise. The second type of risk has to do with the expected time it will take the dealer to unwind a position and its uncertainty. And this, in turn, depends primarily on the thickness of the market for the security. Finally, while a dealer may have access to better information about order flows than the general public, there are some trades where the dealer takes the risk of trading with someone who has better information. This results in the better-informed trader obtaining a better price at the expense of the dealer. Consequently, a dealer in establishing the bid-ask spread for a trade will assess whether or not the trader might have better information.Diff: 2Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making6 Market Efficiency1) In ________, investors can obtain transaction services as cheaply as possible, given the costs associated with furnishing those services.A) an internally inefficient marketB) an externally efficient marketC) a pricing efficient marketD) an operationally efficient marketAnswer: DDiff: 2Topic: 14.6 Market EfficiencyObjective: 14.8 what is meant by the operational efficiency of a market2) In its "Big Bang" of 1986, the London Stock Exchange ________.A) abolished fixed brokerage commissions.B) abolished competitive brokerage commissions.C) adopted fixed brokerage commissions.D) shot down all types of brokerage commissions.Answer: ADiff: 2Topic: 14.6 Market EfficiencyObjective: 14.8 what is meant by the operational efficiency of a market3) Effective August 24, 2000, the minimum spread was reduced to ________ ("decimals"), with trades on all stocks in decimals beginning on August 9, 2001.A) one-eighthB) one-sixteenthC) one centD) two centsAnswer: CDiff: 2Topic: 14.6 Market EfficiencyObjective: 14.8 what is meant by the operational efficiency of a market4) ________ refers to a market where prices at all times fully reflect all available information that is relevant to the valuation of securities.A) Internal inefficiencyB) External efficiencyC) Operational efficiencyD) Pricing efficiencyAnswer: DDiff: 2Topic: 14.6 Market EfficiencyObjective: 14.9 what is meant by the pricing efficiency of a market5) Which of the below statements is TRUE?A) In a passive strategy, investors seek to capitalize on what they perceive to be the mispricing of a security or securities.B) In a market that is price efficient, active strategies will not consistently generate a return after ignoring transactions costs and the risks associated with a strategy of frequent trading.C) In a market which seems to be price efficient, one investment strategy is simply to buy and hold a broad cross section of securities in the marketD) Matching in an investment strategy that has the goal of matching the performance of some financial index from the market.Answer: CComment: A price efficient market has implications for the investment strategy that investors may wish to pursue. In an active strategy, investors seek to capitalize on what they perceive to be the mispricing of a security or securities. In a market that is price efficient, active strategies will not consistently generate a return after taking into consideration transactions costs and the risks associated with a strategy of frequent trading. The other strategy, in a market which seems to be price efficient, is simply to buy and hold a broad cross section of securities in the market. Some investors pursue this strategy through indexing, which is a policy that has the goal of matching the performance of some financial index from the market.Diff: 2Topic: 14.6 Market EfficiencyObjective: 14.10 the implications of pricing efficiency7 Electronic Trading1) Because the bond business has been ________ rather than ________ business, the capital of the market makers is critical.A) a financial; an accountingB) an accounting; a financialC) an agency; a principalD) a principal; an agencyAnswer: DDiff: 2Topic: 14.7 Electronic TradingObjective: 14.5 frictions that cause actual financial markets to differ from a perfect market2) There are several related reasons for the transition to the electronic trading of bonds. Which of the below reasons is NOT one of these?A) The profitability of bond market making has declined since many of the products have become less commodity-like.B) The increase in the volatility of bond markets has increased the capital required of bond broker-dealers.C) Making markets in bonds has become more risky for the market makers because the size of the orders has increased tremendously.D) The profitability of bond market making has declined and their bid-offer spreads have decreased.Answer: AComment: The profitability of bond market making has declined since many of the products have become more commodity-like and their bid-offer spreads have decreased.Diff: 2Topic: 14.7 Electronic TradingObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making3) The same Wall Street firms that have been the major market makers in bonds have also been the ________ of electronic trading in bonds.A) cynicsB) attackersC) supportersD) detractorsAnswer: CDiff: 2Topic: 14.7 Electronic TradingObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making4) There are a variety of types of electronic trading systems for bonds. The two major types of electronic trading systems are ________.A) the customer-to-dealer systems and the exchange systems.B) the dealer-to-customer systems and the leverage systems.C) the broker-to-dealer systems and the exchange systems.D) the dealer-to-customer systems and the exchange systems.Answer: DDiff: 2Topic: 14.7 Electronic TradingObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making5) Which of the below statement is FALSE?A) The multi-customer system simply computerizes the traditional customer-dealer market making mechanism.B) Single-dealer systems are based on a customer dealing with a single, identified dealer over the computer.C) Dealer-to-customer systems can be a single-dealer system or multiple-dealer system.D) Multi-dealer systems provide some advancement over the single- dealer method since a customer can select from any of several identified dealers whose bids and offers are provided on a computer screen.Answer: AComment: The single-dealer system simply computerizes the traditional customer-dealer market making mechanism.Diff: 2Topic: 14.7 Electronic TradingObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making6) Among the overall advantages of electronic trading are ________.A) providing liquidity to the government.B) price discovery (particularly for less liquid markets).C) utilization of old technologies.D) trading and portfolio management inefficiencies.Answer: BComment: Among the overall advantages of electronic trading are (1) providing liquidity to the markets, (2) price discovery (particularly for less liquid markets), (3) utilization of new technologies, and (4) trading and portfolio management efficiencies.Diff: 1Topic: 14.7 Electronic TradingObjective: 14.12 the implications of pricing efficiency for market participants7) Which of the below statement is FALSE?A) According to the exchange system, dealer and customer bids and offers are entered into the system on an anonymous basis, and the clearing of the executed trades is done through a common process.B) Although there is a common clearinghouse for bonds, there is none for common stocks.C) According to the exchange system, dealer and customer bids and offers are entered into the system on an anonymous basis, and the clearing of the executed trades is done through a common process.D) The exchange system is quite different rom the dealer-to-customer systems and has potentially significantly greater value added.Answer: BComment: Although there is a common clearinghouse for common stocks (Depository Trust Company), there is none for bonds.Diff: 2Topic: 14.7 Electronic TradingObjective: 14.7 the role of a dealer as a market maker and the costs associated with market makingTrue/False Questions1 Function of Secondary Markets1) Primary markets help the issuer of securities to track their values and required returns. Answer: FALSEComment: Secondary markets help the issuer of securities to track their values and required returns.Diff: 1Topic: 14.1 Function of Secondary MarketsObjective: 14.1 the definition of a secondary market2) Secondary markets hurt investors by providing liquidity.Answer: FALSEComment: Secondary markets benefit investors by providing liquidity.Diff: 1Topic: 14.1 Function of Secondary MarketsObjective: 14.12 the implications of pricing efficiency for market participants2 Trading Locations1) In the United States, secondary trading of common shares are traded on major national stock exchanges and regional stock exchanges, which are organized and somewhat regulated markets in specific geographical locations.Answer: TRUEDiff: 1Topic: 14.2 Trading LocationsObjective: 14.11 the different forms of pricing efficiency2) The dominant OTC market for stocks in the United States is AMEX.Answer: FALSEComment: The dominant OTC market for stocks in the United States is Nasdaq.Diff: 1Topic: 14.2 Trading LocationsObjective: 14.2 the need for secondary markets for financial assets3 Market Structures1) Some markets conduct the day's initial trades with a call method and most other trades in a continuous way.Answer: TRUEDiff: 1Topic: 14.3 Market StructuresObjective: 14.3 the difference between a continuous and a call market2) In a call market, the auction may be oral but not written.Answer: FALSEComment: In a call market, the auction may be oral or writte n.Diff: 1Topic: 14.3 Market StructuresObjective: 14.3 the difference between a continuous and a call market4 Perfect Markets1) Suppose that an investor expects that the price her security will decline. She can still benefit should the price actually decline if she can arrange to sell the security without owning it. Answer: TRUEDiff: 1Topic: 14.4 Perfect MarketsObjective: 14.12 the implications of pricing efficiency for market participants2) A perfect market does not allow the sale of borrowed securities.Answer: FALSEComment: A perfect market must also permit short selling, which is the sale of borrowed securities.Diff: 1Topic: 14.4 Perfect MarketsObjective: 14.4 the requirements of a perfect market5 Role of Brokers and Dealers in Real Markets1) A dealer acts as an auctioneer in all market structures, thereby providing order and fairness in the operations of the market.Answer: FALSEComment: A dealer acts as an auctioneer in some market structures, thereby providing order and fairness in the operations of the market.Diff: 1Topic: 14.5 Role of Brokers and Dealers in Real MarketsObjective: 14.7 the role of a dealer as a market maker and the costs associated with market making。
syllabus川大 计量经济学 课件
Why Study Financial Markets
Vocational preparation Know what happens in the world
Why Study Financial Markets
Books for references
“Foundations of Financial Markets and Institutions”, by Frank J. Fabozzi, published by China Machine Press “Financial Markets and Institutions”, by Frederic S. Mishkin, published by Tsinghua University Press “Financial Institutions and Markets”, by Jeff Madura, published by Peking University Press. “Financial Markets and Institutions”, by Anthony Saunders and Marcia Millon Cornett, published by Post & Telecom Press 《金融市场学》张亦春、郑振龙著，高等教育出版社
Classification of Financial Markets
By seasoning of claim By immediate delivery or Future delivery
Primary markets
Public offering Private placement
risks
Purchasing power risk/ Inflation risk
金融市场与金融机构基础-Fabozzi-Chapter15
Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones)Chapter 15 Treasury and Agency Securities MarketsMultiple Choice Questions1 Market for Treasury Securities1) Two factors account for the prominent role of U.S. Treasury securities: ________.A) volume (in terms of shares outstanding) and liquidity.B) volume (in terms of dollars outstanding) and illiquidity.C) volume (in terms of dollars outstanding) and liquidity.D) volume (in terms of shares outstanding) and illiquidity.Answer: CDiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market2) The large volume of total debt and the large size of any single issue have contributed to making the U.S. Treasury market the most active and hence the most liquid market ________.A) in the world.B) in the United States.C) in New York City.D) on the East Coast.Answer: ADiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market3) Compared to the United States Treasury market, many issues in the corporate and municipal markets are ________.A) liquid.B) illiquid.C) traded easily.D) none of theseAnswer: BComment: Many issues in the corporate and municipal markets are illiquid by contrast and cannot be traded readily.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market4) Interest income from Treasury securities is ________.A) subject to federal, state, and local income taxes.B) subject to local income taxes but is exempt from federal income taxes.C) subject to state income taxes but is exempt from federal income taxes.D) subject to federal income taxes but is exempt from state and local income taxes.Answer: DDiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market5) Which of the below statements is FALSE?A) Current Treasury practice is to issue all securities with maturities of one year or less as discount securities.B) There are two categories of government securities: discount and coupon securities.C) Treasury securities are available in book-entry form at the Federal Reserve Bank.D) Discount securities pay interest every six months, plus principal at maturity.Answer: DComment: Coupon securities pay interest every six months, plus principal at maturity. Discount securities pay only a contractually fixed amount at maturity, called maturity value or face value.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.8 the zero-coupon Treasury securities market6) Which of the following statements about TIPs is TRUE?A) TIPs refer to Treasury inflation protection securities.B) TIPs adjust for inflation.C) The Treasury has issued TIPS that are notes and bonds.D) All of theseAnswer: DDiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.2 the different types of securities issued by the Treasury7) The inflation-adjusted principal at the beginning of the period is $203,000. Suppose that the semiannual inflation rate for the next six-month period is 1%. What will be the inflation-adjusted principal at the end of the next six-month period?A) $203,000B) $204,030C) $205,000D) $205,030Answer: DComment: The inflation-adjusted principal at the end of the this six-month period is theinflation-adjusted principal at the beginning of the six-month period ($203,000) increased by the semiannual inflation rate (1%). The adjustment to the principal is $2,030 (1% times $203,000). So, the inflation-adjusted principal at the end of the this six-month period is $203,000 + $2,030 = $205,030.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.2 the different types of securities issued by the Treasury8) Because of the possibility of disinflation (i.e., price declines), the inflation-adjusted principal at maturity may turn out to be less than ________ value. However, the Treasury has structured TIPS so that they are redeemed at the ________ the inflation-adjusted principal and the initial par value.A) the initial par; lesser ofB) the initial par; greater ofC) the initial market; greater ofD) the initial market; lesser ofAnswer: BDiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.2 the different types of securities issued by the Treasury9) The U.S. Department of the Treasury ________.A) makes the determination of the procedure for auctioning new Treasury securities.B) does not make the determination of when to auction new Treasury securities.C) does not make the determination what maturities to issue.D) all of theseAnswer: ADiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.3 the operation of the primary market for Treasury securities10) The auction for Treasury securities is conducted on a ________.A) oligopolistic bidding basis.B) negotiated tender basis.C) first come first served basis.D) competitive bidding basis.Answer: DDiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.3 the operation of the primary market for Treasury securities11) In regards, to the auction for Treasury securities, which of the below statements is FALSE?A) Noncompetitive tenders may be submitted for up to a $1 million face amount and are based on quantity, not yield.B) The auction results are determined by first deducting the total noncompetitive tenders and nonpublic purchases (such as purchases by the Federal Reserve itself) from the total securities being auctioned.C) Bids are arranged from the lowest price to the highest price.D) The highest yield accepted by the Treasury is referred to as the stop yield, and bidders at that yield are awarded a percentage of their total tender.Answer: CComment: Bids are arranged from the lowest-yield bid to the highest- yield bid, which is equivalent to arranging the bids from the highest price to the lowest price.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.6 how Treasury securities are quoted in the secondary market12) In regards to the primary dealer, which of the below statements is TRUE?A) Any firm can deal in government securities, but in implementing its open market operations, the Federal Reserve will deal directly only with dealers that it designates as unrecognized dealers.B) The Federal Reserve will make a reporting dealer into a primary dealer if it is convinced that the firm will continue to meet the established criteria.C) The Federal Reserve wants to be sure that firms requesting status as primary dealers have adequate capital relative to positions assumed in Treasury securities and disregard the amount of volume in Treasury securities.D) A reporting dealer is a firm that is taken off the Federal Reserve's regular reporting list. Answer: BComment: Any firm can deal in government securities, but in implementing its open market operations, the Federal Reserve will deal directly only with dealers that it designates as primary dealers or recognized dealers.he Federal Reserve wants to be sure that firms requesting status as primary dealers have adequate capital relative to positions assumed in Treasury securities and do a reasonable amount of volumein Treasury securities.A reporting dealer is a firm that is put on the Federal Reserve’s regular reporting list.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.4 the role of government dealers and government brokers13) Unlike primary dealers, ________ had to make large cash deposits or provide guarantees to ensure that they could fulfill their obligation to purchase the securities for which they bid.A) nonprimary dealersB) recognized dealersC) reporting dealersD) All of theseAnswer: ADiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.4 the role of government dealers and government brokers14) The ________ for Treasury securities is an over-the-counter market where a group of U.S. government securities dealers offer continuous bid and ask prices on outstanding Treasuries.A) exchange marketB) primary marketC) tertiary marketD) secondary marketAnswer: DDiff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.4 the role of government dealers and government brokers15) A Treasury bill with 36 days to maturity, a face value of $100,000, and selling for $99,000 would be quoted at what on a bank discount basis?A) 5.00%B) 7.00%C) 8.50%D) 10.00%Answer: DComment: The convention for quoting bids and offers is different for Treasury bills and Treasury coupon securities. Bids and offers on Treasury bills are quoted in a special way. Unlike bonds that pay coupon interest, Treasury bill values are quoted on a bank discount basis, not on a price basis. The yield on a bank discount basis is computed as follows: Y = t360F D ⨯where Y = annualized yield on a bank discount basis (expressed as a decimal),D = dollar discount, which is equal to the difference between the face value and the price,F = face value, andt = number of days remaining to maturity. Inserting our values, we have: D = $100,000 - $99,000 = $1,000. Therefore, Y = 36360$100,000$1,000⨯ = 0.01 × 10 = 0.1000 or 10.00%.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.8 the zero-coupon Treasury securities market16) For a 100-day Treasury bill with a face value of $100,000, if the yield on a bank discount basis is quoted as 5.00%, what is the price?A) $99,500B) $99,112C) $98,611D) None of theseAnswer: CComment: Given the yield on a bank discount basis (using 360 days), the price of a Treasury bill isfound by first solving for the dollar discount as follows: D = Y × F × 360t . The price is then Price = F - D.For the 100-day (t) Treasury bill with a face value of F = $100,000, if the yield on a bank discountbasis (Y) is quoted as 5.00%, D is equal to D = 0.0500 × $100,000 × 360100 = $1,388.89. Thus, we have: Price = F - D = $100,000 -$1,388.89 = $98,611.11 or about $98,611.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.8 the zero-coupon Treasury securities market17) Which of the below statements is FALSE?A) Government broker-dealers are not required to disclose the bid—ask spread on the Treasury securities that they buy from or sell to customers.B) In the repo market, the term of the loan and the interest rate that the dealer agrees to pay (called the repo rate) are specified.C) The advantage to the dealer of using the repo market for borrowing on a short-term basis is that the rate is greater than the cost of bank financing.D) There is no one repo rate; rates vary from transaction to transaction depending on factors such as the term of the repo and the availability of collateral.Answer: CComment: The advantage to the dealer of using the repo market for borrowing on a short-term basis is that the rate is less than the cost of bank financing.Diff: 2Topic: 15.1 Market for Treasury SecuritiesObjective: 15.7 how government dealers use the repurchase agreement market2 Market for Federal Agency Securities1) The U.S. Congress has chartered entities to provide funding support for the housing and agricultural sectors of the U.S. economy, as well as to provide funding for specific U.S. government projects. The market for the debt instruments issued by these government-chartered entities is called ________.A) the federal agency securities market.B) the national securities market.C) the state agency securities market.D) the federal agency treasury market.Answer: ADiff: 2Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.10 the major issuers in the federal agency securities market2) A type of government-chartered entities is ________.A) Fannie Mae.B) the Mississippi Valley Authority.C) the U.S. Postal Service.D) the Federal Home Loan Banks.Answer: CComment: There are several types of government-chartered entities. One type is agovernment-owned corporation. Two examples are the Tennessee Valley Authority (TVA) and the U.S. Postal Service. However, the only government-owned corporation that is a frequent issuer of debt in the market is the TVA. Another type of government-chartered entity is agovernment-sponsored enterprise (GSE). GSEs are divided into two types. The first is a publicly owned shareholder corporation. There are three such GSEs: Fannie Mae, Freddie Mac, and the Federal Agricultural Mortgage Corporation. The other type of GSE is a funding entity of a federally chartered bank lending system. These GSEs include the Federal Home Loan Banks and the Federal Farm Credit Banks.Diff: 2Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.9 the difference between government-owned corporations and government-sponsored enterprises3) GSE stands for ________.A) government-sponsored entity.B) government-sponsored enterprise.C) government-supported enterprise.D) government-supported entity.Answer: BDiff: 2Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.10 the major issuers in the federal agency securities market4) The GSEs issue two types of securities: debentures and mortgage-backed securities ________.A) indentures and auto-backed securities.B) debentures and auto-backed securities.C) indentures and mortgage-backed securities.D) debentures and mortgage-backed securities.Answer: DDiff: 2Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.10 the major issuers in the federal agency securities market5) Which of the below statements is FALSE?A) The TVA was established by Congress in 1933, primarily to provide flood control, navigation, and agricultural and industrial development, and to promote the use of electric power in the Tennessee Valley region.B) In the 1930s, Congress created a federally related institution, the Federal National Mortgage Association, popularly known as "Fannie Mae," which was charged with the responsibility to create a liquid secondary market for mortgages.C) The Federal Agricultural Mortgage Corporation (popularly known as "Farmer Mac") provides a secondary market for first mortgage forestry land loans.D) In 1970, Congress created the Federal Home Loan Mortgage Corporation (Freddie Mac). The reason for the creation of Freddie Mac was to provide support for conventional mortgages. Answer: CComment: The Federal Agricultural Mortgage Corporation (popularly known as “Farmer Mac”) provides a secondary market for first mortgage agricultural real estate loans.Diff: 2Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.9 the difference between government-owned corporations and government-sponsored enterprises6) ________ consists of the 12 district Federal Home Loan Banks and their member banks.A) The Federal Agricultural Mortgage CorporationB) Fannie MaeC) The Federal Home Loan Bank System (FHLBanks)D) The Federal Farm Credit Bank System (FFCBS)Answer: CDiff: 1Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.9 the difference between government-owned corporations and government-sponsored enterprises7) The purpose of ________ is to facilitate adequate, dependable credit and related services to the agricultural sector of the economy.A) Freddie MacB) Fannie MaeC) the Tennessee Valley AuthorityD) the Federal Farm Credit Bank System (FFCBS)Answer: DDiff: 1Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.1 the importance of the Treasury market3 Government Bond Markets1) All individual countries considered, the largest government bond markets outside of the United States is ________.A) Italy.B) GermanyC) France.D) Japan.Answer: DComment: The largest government bond markets outside of the United States is the Japanese government bond market followed by the markets in Italy, Germany, and France.Diff: 2Topic: 15.3 Government Bond MarketsObjective: 15.11 non-U.S. government bond markets2) In January 1999, the structure of the government bond market changed with the start of ________ enabling the Euro government bond market to become the largest government bond market in the world in terms of size and number of issues.A) the European Monetary Union (EMU)B) the Russian Monetary Union (RMU)C) the British Monetary Union (BMU)D) the Swiss Monetary Union (SMU)Answer: ADiff: 2Topic: 15.3 Government Bond MarketsObjective: 15.11 non-U.S. government bond markets3) There are four methods that have been used in distributing new securities of central governments. Which of the below is NOT one of these?A) One of these is the regular calendar auction/Dutch-style system.B) One of these is the ad hoc auction system.C) One of these is the top system/maximum-price offering system.D) One of these is the regular calendar auction/minimum-price offering system.Answer: CComment: There are four methods that have been used in distributing new securities of central governments. They are:(1) the regular calendar auction/Dutch-style system;(2) the regular calendar auction/minimum-price offering system;(3) the ad hoc auction system; and,(4) the tap system.Diff: 2Topic: 15.3 Government Bond MarketsObjective: 15.11 non-U.S. government bond markets4) ________, governments announce auctions when prevailing market conditions appear favorable.A) In the regular calendar auction/Dutch-style auction systemB) In the regular calendar auction/minimum-price offering systemC) In the ad hoc auction systemD) In a tap systemAnswer: CDiff: 2Topic: 15.3 Government Bond MarketsObjective: 15.4 the role of government dealers and government brokers5) ________, there is a regular calendar of offering where all winning bidders are awarded securities at the highest yield accepted by the government (i.e., the stop-out yield).A) In the regular calendar auction/Dutch-style auction systemB) In the regular calendar auction/minimum-price offering systemC) In the ad hoc auction systemD) In a tap systemAnswer: BDiff: 2Topic: 15.3 Government Bond MarketsObjective: 15.4 the role of government dealers and government brokers6) ________, additional bonds of a previously outstanding bond issue are auctioned where the government announces periodically that it is adding this new supply.A) In the regular calendar auction/Dutch-style auction systemB) In the regular calendar auction/minimum-price offering systemC) In the ad hoc auction systemD) In a tap systemAnswer: DDiff: 2Topic: 15.3 Government Bond MarketsObjective: 15.4 the role of government dealers and government brokers7) ________, there is a regular calendar auction and winning bidders are allocated securities at the yield (price) they bid.A) In the regular calendar auction/Dutch-style auction systemB) In the regular calendar auction/minimum-price offering systemC) In the ad hoc auction systemD) In a tap systemAnswer: ADiff: 2Topic: 15.3 Government Bond MarketsObjective: 15.11 non-U.S. government bond markets8) Which of the below statements is FALSE?A) In the United States, the U.S. Treasury issues fixed-rate bonds and bonds (Treasury Inflation Protection Securities) whose coupon rate is indexed to the rate of inflation.B) Obligation debt is the obligation of a country's central government.C) Sovereign bonds are of the two general categories: economic risk (which refers to assessment of the ability of a government to satisfy its obligations) and political risk (which refers to assessment of the willingness of a government to satisfy its obligations).D) The reason for distinguishing between local debt ratings and foreign currency debt ratings is that historically, the default frequency differs by the currency denomination of the debt.Answer: BComment: Sovereign debt is the obligation of a country’s central government.Diff: 2Topic: 15.3 Government Bond MarketsObjective: 15.11 non-U.S. government bond markets4 A Look at Non-U.S. Government Bond Markets1) The yields on ________ government bonds are viewed as benchmark interest rates in Europe.A) GermanB) U.S.A.C) JapanD) EnglandAnswer: ADiff: 2Topic: 15.4 A Look at Non-U.S. Government Bond MarketsObjective: 15.11 non-U.S. government bond markets2) Most central governments issue fixed-rate coupon bonds just as issued by the U.S. Department of the Treasury. Non-U.S. central governments also offer bonds with other characteristics. For example, the British government, whose bonds are referred to as gilts, offer bonds called ________. These gilts have ________ that give the holder the option to convert into a specified amount of a longer-maturity gilt (or more than one gilt) for a number of years.A) convertibles; short maturitiesB) convertibles; long maturitiesC) nonconvertibles; short maturitiesD) nonconvertibles; long maturitiesAnswer: ADiff: 2Topic: 15.4 A Look at Non-U.S. Government Bond MarketsObjective: 15.11 non-U.S. government bond markets3) ________ pay a fixed coupon (usually 4%) with the increase in the CPI added to the capital value of the bond and paid on maturity.A) Fixed-indexed securitiesB) Capital-indexed securitiesC) Fixed-coupon securitiesD) CPI securitiesAnswer: BDiff: 2Topic: 15.4 A Look at Non-U.S. Government Bond MarketsObjective: 15.11 non-U.S. government bond marketsTrue/False Questions1 Market for Treasury Securities1) The repo rate will be slightly below the federal funds rate because a repo involves collateralized borrowing, while a federal funds transaction is unsecured borrowing.Answer: TRUEDiff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market2) If the rate on the repo is 6.5% and the rate on the reverse repo is 6.55%, the dealer firm is borrowing at 6.5% and lending at 6.55%, locking in a spread of 0.55% (fifty-five basis points). Answer: FALSEComment: If the rate on the repo is 6.5% and the rate on the reverse repo is 6.55%, the dealer firm is borrowing at 6.5% and lending at 6.55%, locking in a spread of 0.05% (five basis points).Diff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market3) When the Fed buys collateral for its own account, this is called a collateral system.Answer: FALSEComment: When the Fed buys collateral for its own account, this is called a system repo.Diff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market4) The Treasury does not issue zero-coupon notes or bonds.Answer: TRUEDiff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market5) The process of separating each coupon payment, as well as the principal (called the corpus), and selling securities against them is referred to as coupon separating.Answer: FALSEComment: The process of separating each coupon payment, as well as the principal (called the corpus), and selling securities against them is referred to as coupon stripping.Diff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market6) Rather than representing a share of the trust as the trademarks do, Treasury receipts (TRs) represent ownership of a Treasury security.Answer: TRUEDiff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market7) An advantage of a taxable entity investing in Treasury strips is that accrued interest is taxed each year even though interest is not paid.Answer: FALSEComment: A disadvantage of a taxable entity investing in Treasury strips is that accrued interest is taxed each year even though interest is not paid.Diff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market8) Financial theory tells us that the theoretical value of a Treasury security should be equal to the present value of the cash flow where each cash flow is discounted at the appropriate theoretical spot rate.Answer: TRUEDiff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market9) Stripped Treasury securities are zero-coupon instruments that, while not issued by the U.S. government, are backed by Treasury securities from which they are created.Answer: TRUEDiff: 1Topic: 15.1 Market for Treasury SecuritiesObjective: 15.1 the importance of the Treasury market2 Market for Federal Agency Securities1) The federal agency securities market is the market for securities issued by U.S.government-chartered entities to provide funding support for the housing and agricultural sectors of the U.S. economy, as well as to provide funding for specific U.S. government projects.Answer: TRUEDiff: 1Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.6 how Treasury securities are quoted in the secondary market2) A government-chartered entity is classified as either a government-owned corporation or a government-sponsored enterprise (GSE).Answer: TRUEDiff: 1Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.6 how Treasury securities are quoted in the secondary market3) The GSEs issue debentures and mortgage-backed securities and these securities are backed by the full faith and credit of the U.S. government.Answer: FALSEComment: The GSEs issue debentures and mortgage-backed securities and these securities are not backed by the full faith and credit of the U.S. government.Diff: 1Topic: 15.2 Market for Federal Agency SecuritiesObjective: 15.6 how Treasury securities are quoted in the secondary market3 Government Bond Markets1) A significant depreciation of the local currency relative to a foreign currency in which a debt obligation is denominated will impair a national government's ability to satisfy such obligation. Answer: TRUEDiff: 1Topic: 15.3 Government Bond MarketsObjective: 15.9 the difference between government-owned corporations and government-sponsored enterprises2) In assessing the credit quality of local currency debt, S&P emphasizes foreign government policies that foster or impede timely debt service.Answer: FALSEComment: In assessing the credit quality of local currency debt, S&P emphasizes domestic government policies that foster or impede timely debt service.Diff: 1Topic: 15.3 Government Bond MarketsObjective: 15.9 the difference between government-owned corporations and government-sponsored enterprises3) Sovereign debt is the obligation of a country's central government.Answer: TRUEDiff: 1Topic: 15.3 Government Bond MarketsObjective: 15.9 the difference between government-owned corporations and government-sponsored enterprises4 A Look at Non-U.S. Government Bond Markets1) The Chinese bond market is the largest government bond market in the world.Answer: FALSEComment: The U.S. bond market is the largest government bond market in the world.Diff: 1Topic: 15.4 A Look at Non-U.S. Government Bond MarketsObjective: 15.11 non-U.S. government bond markets2) The index-linked gilts offered by the British government have coupons and final redemption amounts linked to the General Index of Retail Price (RPI), an index which is released each month by the Central Statistical Office.Answer: TRUEDiff: 1Topic: 15.4 A Look at Non-U.S. Government Bond MarketsObjective: 15.11 non-U.S. government bond marketsEssay Questions1 Market for Treasury Securities1) Illustrate the process of stripping.Answer: To illustrate the process, suppose $100 million of a Treasury bond with a 10-year maturity and a coupon rate of 10% is purchased to create zero-coupon Treasury securities. The cash flow from this Treasury bond is 20 semiannual payments of $5 million each ($100 million times 0.10 divided by 2) and the repayment of principal (corpus) of $100 million 10 years from now. This Treasury bond is deposited in a bank custody account. Receipts are then issued, each with a different single payment claim on the bank custody account. As there are 21 different payments to be made by the Treasury, a receipt representing a single payment claim on each payment is issued, which is effectively azero-coupon bond. The amount of the maturity value for a receipt on a particular payment, whether coupon or corpus, depends on the amount of the payment to be made by the Treasury on the underlying Treasury bond. In our example, 20 coupon receipts each have a maturity value of $5 million, and one receipt, the corpus, has a maturity value of $100 million. The maturity dates for the receipts coincide with the corresponding payment dates by the Treasury.Diff: 3Topic: 15.1 Market for Treasury SecuritiesObjective: 15.2 the different types of securities issued by the Treasury。
英国这5所大学的会计金融专业无背景要求 适合想跨专业读商科的你!
一直以来，商科是经久不衰的热门学科，尤其是会计与金融专业以其超高的就业率和薪资待遇成为了热门中的热门，英国的金融与会计专业历史悠久，一直在全球保持着独特的金融地位，因此，越来越多的学生去英国攻读会计与金融专业，其中就有很多学生想跨专业申请，下面，小编就为大家带来了无背景要求的英国5所大学会计金融专业，希望对大家有所帮助：1、布里斯托大学University of Bristol专业：MSc Accounting, Finance and Management会计、金融与管理硕士课程长度：1 年开学时间：9月学费：£26,200/2020-21年入学要求：学士学位，要求数学能力较强。
有认可的院校名单，接受100余所学校，均分要求78%-87%不等(大致有以下几个最低录取分数线：78/80/82/85/87)。
英语要求：雅思总分6.5，阅读听力7.0，口语写作6.0课程设置(具体课程可能会有新调整)：必修课：Introducing Strategic Management引入战略管理Financial Management财务管理International Financial Reporting国际财务报告Dissertation毕业论文补充说明：布里斯托大学的MSc Accounting and Finance会计与金融硕士竞争更大，要求更严格，且课程更偏研究。
会计、金融与管理硕士则相对容易申请，且课程设置很好，是为那些想要着重学习会计、金融与管理课题的学生开设的，符合当前商业环境。
2、谢菲尔德大学University of Sheffield专业：MSc Accounting, Governance and Financial Management会计、管治与金融管理硕士（*何同学谢菲尔德大学货币，银行与金融成功案例）课程长度：1 年开学时间：9月学费：£24,600/2020-21年入学要求：学士学位，不限背景，有学校自己认可的名单，商学院认可其中130余所，具体分数要求要根据院校而定，75%-85%不等。
Foundations of Financial Markets and Institutions 金融市场与机构基础
Common stock Preferred stock Foreign stock
Debt vs. Equity
Debt Instruments
Fixed dollar payments (‘fixed income’) Examples include loans, bonds
Equity Claims
Limited fund availability in internal market (esp. in poorer countries) Reduced cost of funds Diversifying funding sources (portfolio reduces risk)-reduce reliance on domestic investors
search costs information costs (market efficiency)
Financial Market Participants
Households Business units Federal, state, and local governments Government agencies International organizations (e.g. World bank) Regulators (broader definition)
Classification of Financial Markets
Nature of asset: debt vs. equity markets Maturity: money (short) vs. capital (long) markets Seasoning: primary vs. secondary markets Structure: auction vs. over-the-counter (OTC).
耶鲁公开课笔记之二
美国耶鲁大学网络公开课《金融市场》视频笔记1耶鲁大学网络公开课《金融市场》由罗伯特.J.希勒（Robert J. Shiller）教授主讲。
共26课（集），每课时长均为一个多小时，配有字幕。
[第1课] 金融和保险在经济和社会中的强大作用（时长1小时14分）希勒教授上来就通报自己姓氏，随即介绍本课程的5位助教，都是来自世界各地的博士生，希望由此能有助于本课程的国际化视角，因为金融行业关系到世界各个国家，并不是仅仅局限于美国国内。
这5名助教分别来自巴基斯坦、美国（印度人）、加纳、中国（2位女生），都在作着不同的经济学题目。
希勒教这门课已经20多年了，他很为自己的毕业生而骄傲，很多毕业生都在金融领域工作。
希勒常出去做讲座，当在华尔街或世界其他地方讲座时，他就会问到，“你们有谁上过我的课吗？”有时会有一、两个人举手，说上过他所教的经济学252号课程，希勒就非常高兴。
希勒同时调侃到，他也为那些上过他的课，但没在金融领域工作的毕业生自豪。
希勒认为，《金融市场》这门课，不仅是为立志从事金融业的学生所开设，因为金融是一门很重要的技术（important technology），要理解现实世界发生了什么，了解金融知识是很重要的，因为人类的任何行为都与金融有关。
“我想做个诗人，跟金融有关吗？”希勒举例说明，“作为一个诗人，你想发表诗作，就得和出版商谈谈，他们会说自己的财务状况，看你是否适合在他们公司出版，”这就理所当然地与金融有联系啦，这是非常重要的。
《金融市场》这门课不是为就业所设计的课程，并不集中探讨业务知识，而是一门关于事件实际运作的智慧课程（an intellectual course about how things really work）。
希勒认为金融是所有发生诸多事件的基础，是蕴含在各种现象之中的一股强大力量。
他希望能通过本课程将其描绘出来（I hope we can draw that out in this course）。
(完整word版)金融市场与金融机构基础 Fabozzi Chapter10(word文档良心出品)
Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones)Chapter 10 The Level and Structure of Interest RatesMultiple Choice Questions1 The Theory of Interest Rates1) An interest rate is the price paid by a ________ to a ________ for the use of resources during some interval.A) borrower; debtorB) lender; creditorC) borrower; lenderD) lender; borrowerAnswer: CComment: An interest rate is the price paid by a borrower (or debtor) to a lender (or creditor) for the use of resources during some interval.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.1 Fisher's classical approach to explaining the level of the interest rate2) By the ________, we mean the rate on a loan whose borrower will not default on any obligation.A) risk-free rateB) short termC) real rateD) long termAnswer: AComment: The interest rate that provides the anchor for other rates is the short-term rate:risk-free plus real rate. By short term, we mean the rate on a loan that has one year to maturity. (All other interest rates differ from this rate according to particular aspects of the loan, such as its maturity or risk of default, or because of the presence of inflation.) By the risk-free rate, we mean the rate on a loan whose borrower will not default on any obligation. By the real rate, we mean the rate that would prevail in the economy if the average prices for goods and services were expected to remain constant during the loan’s life.Diff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.4 the structure of Fisher's Law, which states that the nominal and observable interest rate is composed of two unobservable variables; the real rate of interest and the premium for expected inflation3) By the ________, we mean the rate that would prevail in the economy if the average prices for goods and services were expected to remain constant during the loan's life.A) risk-free rateB) short termC) real rateD) long termAnswer: CComment: The interest rate that provides the anchor for other rates is the short-term rate:risk-free plus real rate. By short term, we mean the rate on a loan that has one year to maturity. (All other interest rates differ from this rate according to particular aspects of the loan, such as its maturity or risk of default, or because of the presence of inflation.) By the risk-free rate, we mean the rate on a loan whose borrower will not default on any obligation. By the real rate, we mean the rate that would prevail in the economy if the average prices for goods and services were expected to remain constant during the loan’s life.Diff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.4 the structure of Fisher's Law, which states that the nominal and observable interest rate is composed of two unobservable variables; the real rate of interest and the premium for expected inflation4) By the ________, we mean the rate on a loan that has one year to maturity.A) risk-free rateB) short termC) real rateD) long termAnswer: BComment: The interest rate that provides the anchor for other rates is the short-term rate:risk-free plus real rate. By short term, we mean the rate on a loan that has one year to maturity. (All other interest rates differ from this rate according to particular aspects of the loan, such as its maturity or risk of default, or because of the presence of inflation.) By the risk-free rate, we mean the rate on a loan whose borrower will not default on any obligation. By the real rate, we mean the rate that would prevail in the economy if the average prices for goods and services were expected to remain constant during the loan’s life.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.1 Fisher's classical approach to explaining the level of the interest rate5) Which of the below statements about consumptions and savings is FALSE?A) A chief influence on the saving decision is the individual's marginal rate of time preference, which is the willingness to trade some consumption now for more future consumption.B) Generally, higher current income means the person will save more, although people with the same income may have different time preferences.C) A variable affecting savings is the reward for saving, or the rate of interest on loans that savers make with their unconsumed income.D) The total savings (or the total supply of loans) available at any time is the sum of everybody's savings and a negative function of the interest rate.Answer: DComment: The total savings (or the total supply of loans) available at any time is the sum of everybody’s savings and a positive function of the interest rate.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.2 the role in Fisher's theory of the saver's time preference and the borrowing firm's productivity of capital6) Which of the below statements about the rate of interest and cost of capital is FALSE?A) The maximum that a firm will invest depends on the rate of interest, which is the cost of loans; the firm will invest only as long as the marginal productivity of capital exceeds or equals the rate of interest.B) Firms will reject only projects whose gain is not less than their cost of financing.C) The firm's demand for borrowing is negatively related to the interest rate; if the rate is high, only limited borrowing and investment make sense.D) At a low rate of interest, more projects offer a profit, and the firm wants to borrow more; his negative relationship exists for each and all firms in the economy.Answer: BComment: The maximum that a firm will invest depends on the rate of interest, which is the cost of loans. The firm will invest only as long as the marginal productivity of capital exceeds or equals the rate of interest. In other words, firms will accept only projects whose gain is not less than their cost of financing. Thus, the firm’s demand for borrowing is negatively related to the interest rate. If the rate is high, only limited borrowing and investment make sense. At a low rate, more projects offer a profit, and the firm wants to borrow more. This negative relationship exists for each and all firms in the economy.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.2 the role in Fisher's theory of the saver's time preference and the borrowing firm's productivity of capital7) The ________ rate of interest is determined by interaction of the supply and demand functions. As a cost of borrowing and a reward for lending, the rate must reach the point where total supply of savings ________ total demand for borrowing and investment.A) equilibrium; is greaterB) minimum; equalsC) equilibrium; equalsD) minimum; is greaterAnswer: CDiff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.3 the meaning of equilibrium and how changes in the demand and supply function affect the equilibrium level of the interest rate8) In the absence of inflation, the nominal rate ________ the real rate.A) equalsB) is greater thanC) is less thanD) greater than or equal toAnswer: ADiff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.3 the meaning of equilibrium and how changes in the demand and supply function affect the equilibrium level of the interest rate9) The relationship between inflation and interest rates is the well-known Fisher's Law, which can be expressed this way: (1 + i) = (1 + r) × (1 + i) where ________.A) r is the nominal rate.B) i is the real rate.C) p is the expected percentage change in the price level of goods and services over the loan's life.D) the nominal rate, p, reflects both the real rate and expected inflation.Answer: CComment: The relationship between inflation and interest rates is the well-known Fisher’s Law, which can be expressed this way: (1 + i) = (1 + r) × (1 + i) where i is the nominal rate, r is the real rate, and p is the expected percentage change in the price level of goods and services over the loan’s life. This equation shows that the nominal rate, i, reflects both the real rate and expected inflation.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.4 the structure of Fisher's Law, which states that the nominal and observable interest rate is composed of two unobservable variables; the real rate of interest and the premium for expected inflation10) Which of the below IS considered by Fisher's theory.A) Fisher's theory takes into account the power of the government (in concert with depository institutions) to create money.B) Fisher's theory considers the government's often large demand for borrowed funds, which is frequently immune to the level of the interest rateC) Fisher's theory takes into account the possibility that individuals and firms might invest in cash balances.D) Fisher's theory considers an interest rate on loans that embodies no premium for default risk because borrowing firms are assumed to meet all obligations.Answer: DComment: Fisher’s theory is a general one and obviously neglects certain practical matters, such as the power of the government (in concert with depository institutions) to create money and the government’s often la rge demand for borrowed funds, which is frequently immune to the level of the interest rate. Also, Fisher’s theory does not consider the possibility that individuals and firms might invest in cash balances. Expanding Fisher’s theory to encompass these situations produces the loanable funds theory of interest rates.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.4 the structure of Fisher's Law, which states that the nominal and observable interest rate is composed of two unobservable variables; the real rate of interest and the premium for expected inflation11) The loanable funds theory of interest rates proposes that the general level of interest rates is determined by the complex interaction of two forces. Which of the below is ONE of these forces?A) One force is that the total demand for funds by firms, governments, and households (or individuals) is negatively related to the interest rate including the government's demand.B) One force affecting the level of the interest rate is the total supply of funds by firms, governments, banks, and individuals with rising rates causing banks to be less eager to extend more loans.C) One force is that the total demand for funds by firms, governments, and households (or individuals) is positively related to the interest rate except the government's demand.D) One force affecting the level of the interest rate is the total supply of funds by firms, governments, banks, and individuals with rising rates causing firms and individuals to save and lend more.Answer: DComment: The loanable funds theory of interest rates proposes that the general level of interest rates is determined by the complex interaction of two forces. The first is the total demand for funds by firms, governments, and households (or individuals), which carry out a variety of economic activities with those funds. This demand is negatively related to the interest rate (except for the government’s demand, which may frequently not depend on the level of the interest rate). The second force affecting the level of the interest rate is the total supply of funds by firms, governments, banks, and individuals. Supply is positively related to the level of interest rates, if all other economic factors remain the same. With rising rates, firms and individuals save and lend more, and banks are more eager to extend more loans. (A rising interest rate probably does not significantly affect the government’s supply of savings.)Diff: 3Topic: 10.1 The Theory of Interest RatesObjective: 10.5 the loanable funds theory, which is an expansion of Fisher's theory12) The ________, originally developed by John Maynard Keynes,analyzes the equilibrium level of the interest rate through the interaction of the supply of money and the public's aggregate demand for holding money.A) loanable funds theory of interest ratesB) expectation theory of interest ratesC) liquidity preference theoryD) Fisher theoryAnswer: CDiff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.6 the meaning of liquidity preference in Keynes's theory of the determination of interest rates13) The public (consisting of individuals and firms) holds money for several reasons. Which of the below is three of these?A) Difficulty of translations, precaution against expected events, and speculation about possible rises in the interest rate.B) Ease of transactions, precaution against unexpected events, and speculation about possible rises in the interest rate.C) Ease of unexpected events, precaution against transactions, and speculation about possible rises in the interest rate.D) Speculation about transactions, fear against unexpected events, and precaution about possible rises in the interest rate.Answer: BDiff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.6 the meaning of liquidity preference in Keynes's theory of the determination of interest rates14) The ________ represents the initial reaction of the interest rate to a change in the money supply.A) Income effectB) Price expectation effectC) Liquidity effectD) Interest rate effectAnswer: CDiff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.7 how an increase in the money supply can affect the level of the interest rate through an impact on liquidity, income, and price expectations15) Which of the below statements is FALSE?A) Although an increase in the money supply is an economically expansionary policy, the resultant increase in income depends substantially on the amount of slack in the economy at the time of the Fed's action.B) In Fisher's terms, the interest rate reflects the interaction of the savers' marginal rate of time preference and borrowers' marginal productivity of capital.C) Changes in the money supply can affect the level of interest rates through the liquidity effect, the income effect, and the price expectations effect; their relative magnitudes depend upon the level of economic activity at the time of the change in the money supply.D) Because the price level (and expectations regarding its changes) affects the money demand function, the liquidity effect is an increase in the interest rate.Answer: DComment: Because the price level (and expectations regarding its changes) affects the money demand function, the price expectations effect is an increase in the interest rate.Diff: 2Topic: 10.1 The Theory of Interest RatesObjective: 10.7 how an increase in the money supply can affect the level of the interest rate through an impact on liquidity, income, and price expectations2 The Determinants of the Structure of Interest Rates1) A ________ is an instrument in which the issuer (debtor/borrower) promises to repay to the lender/investor the amount borrowed plus interest over some specified period of time.A) bondB) common stockC) preferred stockD) T-billAnswer: ADiff: 1Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.8 the features of a bond issue2) The ________ should reflect the coupon interest that will be earned plus either (1) any capital gain that will be realized from holding the bond to maturity, or (2) any capital loss that will be realized from holding the bond to maturity.A) yield on a bond investmentB) dividend yield on a bond investmentC) bid-ask spreadD) yield on a stock investmentAnswer: ADiff: 1Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.8 the features of a bond issue3) The ________ the market price, the higher the yield to maturity.A) higherB) less riskyC) more safeD) lowerAnswer: DDiff: 1Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.8 the features of a bond issue4) The ________ of a bond is the amount that the issuer agrees to repay the bondholder at the maturity date.A) principal value (or simply principal)B) face valueC) redemption valueD) All of theseAnswer: DComment: The principal value (or simply principal) of a bond is the amount that the issuer agrees to repay the bondholder at the maturity date. This amount is also referred to as the par value, maturity value, redemption value, or face value.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.8 the features of a bond issue5) The yield to maturity is determined by a trial-and-error process. The first step in this trial and error process is ________.A) Compute the present value of each cash flow using the best guess interest rate.B) Total the present value of the cash flows using the best guess interest rate.C) Select an interest rate.D) Compare the total present value using the best guess interest rate with the market price of the bond.Answer: CComment: The yield to maturity is determined by a trial-and-error process. Even the algorithm in a calculator or computer program, which computes the yield to maturity (or internal rate of return) in an apparently direct way, uses a trial-and-error process. The steps in that process are as follows:Step 1: Select an interest rate.Step 2: Compute the present value of each cash flow using the interest rate selected in Step 1. Step 3: Total the present value of the cash flows found in Step 2.Step 4: Compare the total present value found in Step 3 with the market price of the bond and, if the total present value of the cash flows found in Step 3 is• equal to the market price, then the interest rate used in Step 1 is the yield to maturity;• greater than the market price, then the interest rate is not the yield to maturity. Therefore, go back to Step 1 and use a higher interest rate;• less than the market price, then the interest rate is not the yield to maturity. Therefore, go back to Step 1 and use a lower interest rate.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.9 how the yield to maturity of a bond is calculated6) There are several interesting points about the relationship among the coupon rate, market price, and yield to maturity. Which of the below is NOT one of these.A) If the market price is equal to the par value, then the yield to maturity is equal to the coupon rate.B) If the market price is less than the par value, then the yield to maturity is greater than the coupon rate.C) If the market price is greater than the par value, then the yield to maturity is greater than the coupon rate.D) If the market price is greater than the par value, then the yield to maturity is less than the coupon rate.Answer: CComment: There are several interesting points about the relationship among the coupon rate, market price, and yield to maturity as summarized below.1. If the market price is equal to the par value, then the yield to maturity is equal to the coupon rate;2. If the market price is less than the par value, then the yield to maturity is greater than the coupon rate, and;3. If the market price is greater than the par value, then the yield to maturity is less than the coupon rate.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.9 how the yield to maturity of a bond is calculated7) Consider an 20-year bond with a coupon rate of 8% and a par value of $1,000. The cash flow for this bond is ________ every six months for the first 39 semi-annual periods and then________ for the last (or 40th) six-month period.A) $1,040; $40B) $40; $1,040C) $80; $1,080D) $80; $1,000Answer: BComment: Consider an 20-year bond with a coupon rate of 8% and a par value of $1,000. The cash flow for this bond is $40 every six months for the first 39 semi-annual periods and then $1,040 for the last (or 40th) six-month period.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.8 the features of a bond issue8) The difference between the yield on any two bond issues is called a ________.A) yield differenceB) difference spreadC) coupon rate spreadD) yield spreadAnswer: DDiff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.13 what factors affect the yield spread between two bonds9) Treasury securities are used to develop the benchmark interest rates. There are two categories of U.S. Treasury securities: ________.A) discount and coupon securities.B) discount and coupon stocks.C) interest rate and coupon securities.D) discount and compound securities.Answer: ADiff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.1 Fisher's classical approach to explaining the level of the interest rate10) The most recently auctioned Treasury issues for each maturity are referred to as ________.A) off-the-run issues or current coupon issues.B) minimum interest rate or base interest rateC) on-the- run or current coupon issues.D) benchmark interest rate or minimum interest rate.Answer: CComment: The most recently auctioned Treasury issues for each maturity are referred to as on-the- run or current coupon issues. Issues auctioned prior to the current coupon issues are typically referred to as off-the- run issues; they are not as liquid as on-the-run issues, and, therefore, offer a higher yield than the corresponding on-the-run Treasury issue. The minimum interest rate or base interest rate that investors will demand for investing in a non-Treasury security is the yield offered on a comparable maturity on-the-run Treasury security. The base interest rate is also referred to as the benchmark interest rate.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.10 why historically the yields on securities issued by the U.S. Department of the Treasury have been used as the benchmark interest rates throughout the world11) Market participants talk of interest rates on non-Treasury securities as ________ to a particular on-the-run Treasury security (or a spread to any particular benchmark interest rate selected). This spread reflects the additional risks the investor faces by acquiring a security thatis not issued by the U.S. government and, therefore, can be called a ________.A) "trading at a premium"; risk premiumB) "trading at a spread"; risk premiumC) "trading at a premium"; risk spreadD) "trading at a discount"; discount premiumAnswer: BComment: Market participants talk of interest rates on non-Treasury securities as “trading at a spread” to a particular on-the-run Treasury security (or a spread to any particular benchmark interest rate selected). For example, if the yield on a 10-year non-Treasury security on May 20, 2008, is 4.78%, then the spread is 100 basis points over the 3.78% Treasury yield. This spread reflects the additional risks the investor faces by acquiring a security that is not issued by the U.S. government and, therefore, can be called a risk premium.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.13 what factors affect the yield spread between two bonds12) The factors that affect the spread include ________.A) the type of issuer and the expected liquidity of the issueB) the provisions that grant either the issuer or the investor the obligation to do something and the taxability of the interest received by the issuerC) the investor's perceived creditworthiness and the term or maturity of the investor's horizon.D) All of theseAnswer: AComment: The factors that affect the spread are (1) the type of issuer, (2) the issuer’s perceived creditworthiness, (3) the term or maturity of the instrument, (4) provisions that grant either the issuer or the investor the option to do something, (5) the taxability of the interest received by investors, and (6) the expected liquidity of the issue.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.13 what factors affect the yield spread between two bonds13) Within the corporate market sector, issuers are classified as ________.A) (1) utilities, (2) industrials, (3) finance, and (4) banks.B) (1) high-risk, (2) medium-risk, (3) low-risk, and (4) no-risk.C) (1) foreign, (2) domestic, (3) European, and (4) Asian.D) (1) intramarket, (2) extramarket, (3) ultramarket, and (4) intermarket.Answer: AComment: Within the corporate market sector, issuers are classified as follows: (1) utilities, (2) industrials, (3) finance, and (4) banks.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.12 the different types of bonds14) The highest-grade bonds are designated by Moody's by the symbol ________.A) BaB) AC) AaD) AaaAnswer: DComment: In all systems, the term high grade means low credit risk, or conversely, high probability of future payments. The highest-grade bonds are designated by Moody’s by the symbol Aaa, and by S&P and Fitch by the symbol AAA. The next highest grade is denoted by the symbol Aa (Moody’s) or AA (S&P and Fitch); for the third grade, all rating systems use A. The next three grades are Baa or BBB, Ba or BB, and B, respectively. There are also C grades. Moody’s uses 1, 2, or 3 to provi de a narrower credit quality breakdown within each class, andS&P and Fitch use plus and minus signs for the same purpose.Diff: 1Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.12 the different types of bonds15) Which of the below statements is FALSE?A) The spread between Treasury securities and non-Treasury securities that are identical in all respects except for credit quality is referred to as a credit spread.B) The spread between any two maturity sectors of the market is called a maturity spread or yield curve spread.C) An option that is included in a bond issue is referred to as a prepayment option.D) The most common type of option in a bond issue is a call provision.Answer: CComment: It is not uncommon for a bond issue to include a provision that gives either the bondholder and/or the issuer an option to take some action against the other party. An option that is included in a bond issue is referred to as an embedded option.Diff: 2Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.12 the different types of bondsTrue/False Questions1 The Theory of Interest Rates1) The liquidity preference theory is Keynes's view that the rate of interest is set in the market for money balances.Answer: TRUEDiff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.6 the meaning of liquidity preference in Keynes's theory of the determination of interest rates2) Interest is the price paid for the permanent use of resources, and the amount of a loan is its principal.Answer: FALSEComment: Interest is the price paid for the temporary use of resources, and the amount of a loan is its principal.Diff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.7 how an increase in the money supply can affect the level of the interest rate through an impact on liquidity, income, and price expectations3) In Fisher's terms, the interest rate reflects the interaction of the savers' marginal productivity of capital and borrowers' marginal rate of time preference.Answer: FALSEComment: In Fisher’s terms, the interest rate reflects the interaction of the savers’ marginal rate of time preference and borrowers’ marginal productivity of capital.Diff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.2 the role in Fisher's theory of the saver's time preference and the borrowing firm's productivity of capital4) The loanable funds theory is an extension of Fisher's theory and proposes that the equilibrium rate of interest reflects the demand and supply of funds, which depend on savers' willingness to save, borrowers' expectations regarding the profitability of investing, and the government's action regarding money supply.Answer: TRUEDiff: 1Topic: 10.1 The Theory of Interest RatesObjective: 10.5 the loanable funds theory, which is an expansion of Fisher's theory2 The Determinants of the Structure of Interest Rates1) Convertible bonds are securities issued by state and local governments and by their creations, such as "authorities" and special districts.Answer: FALSEComment: Municipal bonds are securities issued by state and local governments and by their creations, such as “authorities” and special districts.Diff: 1Topic: 10.2 The Determinants of the Structure of Interest RatesObjective: 10.11 the reason why the yields on U.S. Treasury securities are no longer as popular as benchmark interest rates and what alternative benchmarks are being considered by market participants。
金融市场与金融机构基础FabozziChapter01
金融市场与金融机构基础FabozziChapter01Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones)Chapter 1 IntroductionMultiple Choice Questions1 Financial Assets1) An asset is a possession that has value in an exchange and can be classified as ________.A) financial or intangible.B) financial or variable.C) tangible or intangible.D) fixed or variable.Answer: CDiff: 2Topic: 1.1 Financial AssetsObjective: 1.5: the various ways to classify financial markets2) The financial asset is referred to as a ________ if the claim isa fixed dollar.A) debt instrument.B) common equity instrument.C) derivative instrument.D) preferred equity instrument.Answer: ADiff: 2Topic: 1.1 Financial AssetsObjective: 1.4: the distinction between debt instruments and equity instruments3) A basic economic principle is that the price of any financial asset ________ the present value of its expected cash flow, even ifthe cash flow is not known with certainty.A) is greater thanB) is equal toC) is less thanD) is equal to or greater thanAnswer: BDiff: 2Topic: 1.1 Financial AssetsObjective: 1.1: what a financial asset is and the principal economic functions of financial assets4) A(n) ________ such as plant or equipment purchased by a business entity shares at least one characteristic with a financial asset: Both are expected to generate future cash flow for their owner.A) tangible assetB) intangible assetC) balance sheet assetD) cash assetAnswer: ADiff: 1Topic: 1.1 Financial AssetsObjective: 1.2: the distinction between financial assets and tangible assets5) Financial assets have two principal economic functions. Which of the below is ONE of these?A) A principal economic function is to transfer funds from those who have surplus funds to borrow to those who need funds to invest in intangible assets.B) A principal economic function is to transfer funds in such a way as to redistribute the avoidable risk associated with thecash flow generated by intangible assets among those seeking and those providing the funds.C) A principal economic function is to transfer funds in such a way as to redistribute the unavoidable risk associated with the cash flow generated by tangible assets among those seeking and those providing the funds.D) A principal economic function is to transfer funds from those who have surplus funds to invest to those who need funds to invest in intangible assets.Answer: CComment: Financial assets have two principal economic functions.(1) The first is to transfer funds from those who have surplus funds to invest to those who need funds to invest in tangible assets.(2) The second economic function is to transfer funds in sucha way as to redistribute the unavoidable risk associated with the cash flow generated by tangible assets among those seeking and those providing the funds.Diff: 3Topic: 1.1 Financial AssetsObjective: 1.1: what a financial asset is and the principal economic functions of financial assets6) A principal economic function to transfer funds from those who have ________ to invest to those who need funds to invest in ________.A) deficit funds; tangible assets.B) surplus funds; intangible assets.C) deficit funds; intangible assets.D) surplus funds; tangible assets.Answer: DComment: Financial assets have two principal economic functions.(1) The first is to transfer funds from those who have surplusf unds to invest to those who need funds to invest in tangible assets.(2) The second economic function is to transfer funds in sucha way as to redistribute the unavoidable risk associated with the cash flow generated by tangible assets among those seeking and those providing the funds.Diff: 2Topic: 1.1 Financial AssetsObjective: 1.1: what a financial asset is and the principal economic functions of financial assets 2 Financial Markets1) Financial markets provide three economic functions. Which of the below is NOT one of these?A) The interactions of buyers and sellers in a financial market determine the price of the traded asset.B) Financial markets provide a mechanism for an investor to sell a financial asset.C) Financial markets increases the cost of transacting.D) The interactions of buyers and sellers in a financial market determine the required return on a financial asset.Answer: CComment: Financial markets provide three economic functions.First, the interactions of buyers and sellers in a financial market determine the price of the traded asset. Or, equivalently, they determine the required return on a financial asset. As the nducement for firms to acquire funds depends on the requiredreturn that investors demand, it is this feature of financial markets that signals how the funds in the economy should be allocated among financial assets. This is called the price discovery process.Second, financial markets provide a mechanism for an investor to sell a financial asset. Because of this feature, it is said that a financial market offers liquidity, an attractive feature when circumstances either force or motivate an investor to sell. If there were not liquidity, the owner would be forced to hold a debt instrument until it matures and an equity instrument until the company is either voluntarily or involuntarily liquidated.While all financial markets provide some form of liquidity, the degree of liquidity is one of the factors that characterize different markets. The third economic function of a financial market is that it reduces the cost of transacting. There are two costs associated with transacting: search costs and information costs.Diff: 3Topic: 1.2 Financial MarketsObjective: 1.3: what a financial market is and the principal economic functions it performs2) The shifting of the financial markets from dominance by retail investors to institutional investors is referred to as the ________ of financial markets.A) globalizationB) institutionalizationC) securitizationD) diversificationAnswer: BDiff: 2Topic: 1.2 Financial MarketsObjective: 1.5: the various ways to classify financial markets3) Financial markets can be categorized as those dealing with newly issued financial claims that are called the ________, and those for exchanging financial claims previously issued that are called the ________.A) secondary market; primary market.B) financial market; secondary market.C) OTC market; NYSE/AMEX market.D) primary market; secondary market.Answer: DDiff: 2Topic: 1.2 Financial MarketsObjective: 1.6: the differences between the primary and secondary markets4) Business entities include nonfinancial and financial enterprises. ________ manufacture products such as cars and computers and/or provide nonfinancial services such as transportation and utilities.A) Financial enterprisesB) Nonfinancial enterprisesC) Both financial and nonfinancial enterprisesD) None of theseAnswer: BDiff: 1Topic: 1.2 Financial MarketsObjective: 1.7: the participants in financial markets3 Globalization of Financial Markets1) Which of the below is NOT a factor that has led to the integration of financial markets?A) A factor is liberalization of markets and the activities of market participants in key financial centers of the world.B) A factor is deregulation of markets and the activities of market participants in key financial centers of the world.C) A factor is technological advances for monitoring world markets, executing orders, and analyzing financial opportunities.D) A factor is decreased institutionalization of financial markets.Answer: DComment: The factors that have led to the integration of financial markets are (1) deregulation or liberalization of markets and the activities of market participants in key financial centers of the world; (2) technological advances for monitoring world markets, executing orders, and analyzing financial opportunities; and (3) increased institutionalization of financial markets.Diff: 3Topic: 1.3 Globalization of Financial MarketsObjective: 1.8: reasons for the globalization of financial markets2) A factor leading to the integration of financial markets is ________.A) decreased institutionalization of financial markets.B) increased monitoring of markets.C) technological advances for monitoring domestic markets, executing orders, and analyzing financial opportunities.D) technological advances for monitoring world markets, executing orders, and disregarding financial opportunities.Answer: DComment: The factors that have led to the integration of financial markets are (1) deregulation or liberalization of markets and the activities of market participants in key financial centers of the world; (2) technological advances for monitoring worldmarkets, executing orders, and analyzing financial opportunities; and (3) increased institutionalization of financial markets.Diff: 2Topic: 1.3 Globalization of Financial MarketsObjective: 1.8: reasons for the globalization of financial markets3) From the perspective of a given country, financial markets can be classified as either internal or external. The internal market is composed of two parts: the domestic market and the foreign market. The domestic market is ________.A) where the securities of issuers not domiciled in the country are sold and traded.B) where issuers domiciled in a country issue securities and where those securities are subsequently traded.C) where securities are offered simultaneously to investors in a number of countries.D) where issuers domiciled in a country issue securities and where those securities are NOT subsequently traded.Answer: BDiff: 2Topic: 1.3 Globalization of Financial MarketsObjective: 1.10: the distinction between a domestic market, a foreign market, and the Euromarket 4) A reason for a corporation using ________ is a desire by issuers to diversify their source of funding so as to reduce reliance on domestic investors.A) EuromarketsB) domestic equity marketsC) domestic government marketsD) None of theseAnswer: ADiff: 1Topic: 1.3 Globalization of Financial MarketsObjective: 1.11: the reasons why entities use foreign markets and Euromarkets4 Derivative Markets1) The two basic types of derivative instruments are ________ and ________.A) insurance contracts; options contractsB) futures/forward contracts; indenturesC) futures/forward contracts; legal contractsD) futures/forward contracts; options contractsAnswer: DDiff: 2Topic: 1.4 Derivative MarketsObjective: 1.12: what a derivative instrument is and the two basic types of derivative instruments2) Derivative instruments derive their value from ________.A) market conditions at time of delivery.B) market conditions at time of issue.C) the underlying instruments to which they relate.D) variations in the future claims conveyed from spot markets.Answer: CDiff: 2Topic: 1.4 Derivative MarketsObjective: 1.13: the role of derivative instruments3) Derivative contracts provide ________.A) issuers and investors an expensive but efficient way of controlling some major risks.B) issuers and investors an inexpensive way of controllingsome major risks.C) issuers and investors an inexpensive but inefficient way of controlling all major risks.D) issuers and investors an expensive way of controlling some minor risks.Answer: BDiff: 1Topic: 1.4 Derivative MarketsObjective: 1.13: the role of derivative instruments4) Derivative markets may have at least three advantages over the corresponding cash (spot) market for the same financial asset. Which of the below is ONE of these advantages?A) Transactions typically can be accomplished faster in the derivatives market.B) It will always cost more to execute a transaction in the derivatives market in order to adjust the risk exposure of an investor's portfolio to new economic information than it would cost to make that adjustment in the cash market.C) All derivative markets can absorb a greater dollar transaction without an adverse effect on the price of the derivative instrument; that is, the derivative market may be more liquid than the cash market.D) Some derivative markets can absorb a greater dollar transaction but with an adverse effect on the price of the derivative instrument; that is, the derivative market may be more liquid than the cash market.Answer: AComment: Derivative markets may have at least three advantages over the corresponding cash (spot) market for the same financial asset.First, depending on the derivative instrument, it may cost less to execute a transaction in the derivatives market in order to adjust the risk exposure of an investor’’s portfolio to new economic information than it would cost to make that adjustment in the cash market.Second, transactions typically can be accomplished faster in the derivatives market.Third, some derivative markets can absorb a greater dollar transaction without an adverse effect on the price of the derivative instrument; that is, the derivative market may be more liquid than the cash market.Diff: 3Topic: 1.4 Derivative MarketsObjective: 1.13: the role of derivative instruments5 The Role of the Government in Financial Markets1) Which of the following statements is FALSE?A) Because of the prominent role played by financial markets in economies, governments have long deemed it necessary to regulate certain aspects of these markets.B) In their regulatory capacities, governments have had little influence on the development and evolution of financial markets and institutions.C) It is important to realize that governments, markets, and institutions tend to behave interactively and to affect one another's actions in certain ways.D) A sense of how the government can affect a market and its participants is important to an understanding of the numerous markets and securities.Answer: BComment: In their regulatory capacities, governments havegreatly influenced the development and evolution of financial markets and institutions.Diff: 2Topic: 1.5 The Role of the Government in Financial Markets Objective: 1.15 the different ways that governments regulate markets, including disclosure regulation, financial activity regulation, financial institution regulation, regulation of foreign firm participation, and regulation of the monetary system2) Which of the below statements is TRUE?A) Because of differences in culture and history, different countries regulate financial markets and financial institutions in varying ways, emphasizing some forms of regulation more than others.B) The standard explanation or justification for governmental regulation of a market is that the market, left to itself, will produce its particular goods or services in an efficient manner and at the lowest possible cost.C) Governments in most developed economies have created elaborate systems of regulation for financial markets, in part because the markets themselves are simple and in part because financial markets are unimportant to the general economies in which they operate.D) Financial activity regulation are free of rules about traders of securities and trading on financial markets.Answer: AComment: The standard explanation or justification for governmental regulation of a market is that the market, left to itself, will not produce its particular goods or services in an efficient manner and at the lowest possible cost.Governments in most developed economies have createdelaborate systems of regulation for financial markets, in part because the markets themselves are complex and in part because financial markets are so important to the general economies in which they operate.Financial activity regulation consists of rules about traders of securities and trading on financial markets.Diff: 3Topic: 1.5 The Role of the Government in Financial Markets Objective: 1.14: the typical justification for governmental regulation of markets。
cqf考试科目
cqf考试科目CQF考试是金融量化领域的重要认证考试，共包括八门科目。
在准备CQF考试过程中，参考以下相关内容可以帮助考生更好地理解和掌握考试科目的内容。
1. 金融计量学：本科程度的统计学基础是学习金融计量学的前提。
参考资料可以包括计量经济学经典教材《计量经济学导论》（Introduction to Econometrics）和《高级计量经济学》（Advanced Econometrics）；同时，统计学方面的书籍，如《数理统计学》（Mathematical Statistics）和《应用回归分析》（Applied Regression Analysis），也有助于加深对金融计量学的理解。
2. 金融市场：参考内容可以包括宏观经济学教材，如《宏观经济学》（Macroeconomics）和《货币金融学》（Monetary Economics），以及金融市场理论的经典教材，如《金融市场学》（Financial Markets）和《投资学原理》（Principles of Investment）。
此外，可以关注金融市场的实时数据与报告，如全球主要金融机构的季度报告、宏观经济数据发布等，以加深对金融市场的了解。
3. 金融产品：学习金融产品需要了解不同类型金融产品的特性和应用。
参考内容可以包括金融学教材中关于金融产品的介绍，如《金融学原理》（Principles of Finance）和《金融学基础》（Foundations of Financial Markets）。
此外，了解相关金融市场的投资工具和交易策略也是重要的参考内容。
4. 认购证券与期权：参考内容可以包括期权市场的相关教材，如《期权、期货与其他衍生产品》（Options, Futures, andOther Derivatives）和《期权定价与交易策略》（OptionPricing and Trading Strategies）。
认购证券与期权领域的学术论文和研究报告也是了解最新发展和实践的有力参考。
金融毕业实习报告参考文献
金融毕业实习报告参考文献感谢您的要求。
由于实习报告是个人工作经历和学习的总结，模型助手无法为您提供完整的实习报告的内容。
但是我可以帮助您找到一些相关的参考文献，供您参考。
以下是一些关于金融领域的重要参考文献列表，您可以根据您的实习内容和个人需求选择合适的文献进行阅读和引用。
1. Brigham, E., & Ehrhardt, M. (2013). Financial management: Theory and practice. Cengage Learning.2. Bodie, Z., Kane, A., & Marcus, A. J. (2013). Investments. McGraw-Hill.3. Hull, J. C. (2015). Options, futures, and other derivatives. Prentice Hall.4. Copeland, T. E., Weston, J. F., & Shastri, K. (2016). Financial theory and corporate policy. Pearson.5. Fabozzi, F. J., Modigliani, F., & Jones, F. (2013). Foundations of financial markets and institutions. Pearson.6. Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2015). Fundamentals of corporate finance. McGraw-Hill.7. Schiller, R. J. (2015). The economics of money, banking and financial markets. Pearson.8. Stiglitz, J. E. (2016). The theory of price: an exposition ofeconomic theory. Princeton University Press.9. Malkiel, B. G. (2015). A random walk down Wall Street: The time-tested strategy for successful investing. WW Norton & Company.10. Berk, J., & DeMarzo, P. (2016). Corporate finance. Pearson.11. Merton, R. C. (2014). On the pricing of corporate debt: The risk structure of interest rates. The Journal of Finance, 29(2), 449-470.12. Fama, E. F., & French, K. R. (2015). A five-factor asset pricing model. Journal of financial economics, 116(1), 1-22.13. Black, F., & Scholes, M. (2015). The pricing of options and corporate liabilities. Journal of political economy, 81(3), 637-654.14. Markowitz, H. (2014). Portfolio selection. Journal of finance, 7(1), 77-91.15. Ang, A., & Timmermann, A. (2014). Regime changes and financial markets. Annual Review of Financial Economics, 6(1), 339-360.这些文献将涵盖金融领域的各个方面，包括投资、风险管理、公司财务、金融市场、金融工具定价等。
货币银行学 英语
货币银行学英语The intricate world of monetary banking, rooted in the foundations of economics, finance, and policy-making, holds a pivotal position in shaping the global economy. The dynamics of currency, credit, and financial institutions are at the core of this discipline, influencing the flow of funds, interest rates, and inflation rates. As the global economy becomes increasingly interconnected, the significance of monetary banking in English, as a lingua franca of international finance, cannot be overstated.In the realm of monetary banking, the English language serves as a bridge that connects diverse financial markets, institutions, and policies across the globe. English is the language of financial reports, market analysis, and international agreements, facilitating the seamless exchange of information and ideas. This linguistic unity not only enhances the efficiency of financial markets but also promotes stability and growth by fostering transparency and accountability.The integration of English and monetary banking is evident in the global financial architecture. Internationalfinancial institutions such as the International Monetary Fund (IMF) and the World Bank conduct their operations primarily in English, ensuring that financial policies and strategies are communicated effectively to a wide range of stakeholders. The common language of finance enables policymakers to respond quickly to crises, coordinate global economic efforts, and promote sustainable development.Moreover, the rise of English in monetary banking has accelerated the pace of financial innovation and technology adoption. Financial technologies (FinTech) such as blockchain and artificial intelligence are revolutionizing the banking industry, and English serves as the language of choice for research, development, and implementation. This linguistic统一性促进了金融服务的普及和效率提升，同时也加强了全球金融市场的连通性和竞争力。
MBS运作中的早偿风险分析和测度
MBS运作中的早偿风险分析和测度刘安国A b s t r a c tA s s e t s e c u r i t i z a t i o n i s o n e o f t h e m o a t i n f l u e n t i a l f i n a n c i a l i n n o v a t i o n s s p r u n g o u t i n t h e U n i t e d S t a t e s i n t h e1980s.t h ep r o c e s s i n v o l v e s t h e c o l l e c t i o n o r p o o l i n g o f l o a n s a n d t h e s a l e o f s e c u r i t i e s b a c k e d b y t h o s e l o a n s.A s o n e o f t h e m o s t e f f i c i e n t m e a n s o f u s i n g c a p i t a l,a s s e t s e c u r i t i z a t i o n c a m e t o i n s t a n ts u c c e s s i n t h e m o r t g a g e m a r k e t i n t h e U n i t e d S t a t e s.I t i sp r e d i c t e d t h a t s e c u r i t i z a t i o n m a y e v e n t u a l l y r e p l a c e t h et r a d i t i o n a l s y s t e m o f i n d i r e c t f i n a n c i n g. T h i s a r t i c l e a t t e m p t s t o g i v e a b r i e f i n t r o d u c t i o n t o t h e a n a l y s i s a n d m e a s u r e m e n t o f t h e p r e p a y m e n t r i s k u s u a l l y e x p e r i e n c e i n M B S(m o r t g a g e-b a c k e d s e c u r i t i e s)o p e r a t i o n s.A s t h e f i n a n c i a l m a r k e t i n C h i n a g e t si n c r e a s i n g l y o p e n t o t h e w o r l d,f i n a n c i a l i n n o v a t i o n s a b r o a dw i l l b e i n c r e a s i n g l y a d o p t e d i n C h i n a.T h e r e i s n o d o u b t t h a tt h e r e s e a r c h a n d p r a c t i c e s d e v e l o p e d i n t h e U n i t e d S t a t e s w i l l l e n d m u c h i n s i g h t o n t h e a n a l y s i s a n d m e a s u r e m e n t o f t h ep r e p a y m e n t r i s k i n M B S o p e r a t i o n t o i n v e s t m e n t i n s t i t u t i o n sa n d r e s e a r c h e r s i n C h i n a.K e y W o r d s:A s s e t s e c u r i t i z a t i o n,MB S,p r e p a y m e n t r i s k,c o n t r a c t i o nr i s k,e x t e n s i o n r i s k,C P R,S M M摘要资产证券化是八十年代美国金融市场出现的最有影响的创新举措之一。
【基础】金融市场与金融机构基础FabozziChapter13
【关键字】基础Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones)Chapter 13 Primary Markets and the Underwriting of SecuritiesMultiple Choice Questions1 The Traditional Process for Issuing New Securities1) The ________ involves the distribution to investors of newly issued securities by central governments, its agencies, municipal governments, and corporationsA) OTC marketB) secondary marketC) primary marketD) stock marketAnswer: CDiff: 1Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities 2) The participants in the marketplace that work with issuers to distribute newly issued securities are called investment bankers. Investment banking is performed by two groups: ________.A) commercial banks and securities houses.B) hometown banks and securities houses.C) commercial banks and bank houses.D) savings & loans and bank houses.Answer: ADiff: 2Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities 3) The traditional process in the United States for issuing new securities involves investment bankers performing up to three functions. Which of the below is NOT one of these functions?A) One function is advising the issuer on the terms and the timing of the offering.B) One function is selling the securities to the issuer.C) One function is distributing the issue to the public.D) One function is buying the securities from the issuer.Answer: BComment: The traditional process in the United States for issuing new securities involves investment bankers performing one or more of the following three functions:(1) advising the issuer on the terms and the timing of the offering,(2) buying the securities from the issuer, and(3) distributing the issue to the public.Diff: 1Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities4) An investment banker may merely act as an advisor and/or distributor of the new security. The function of buying the securities from the issuer is called ________.A) advising.B) distributing.C) purchasing.D) underwriting.Answer: DDiff: 2Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities 5) An ________ is a common stock offering issued by companies that have NOT previously issued common stock to the public.A) initial private issuance (IPI)B) seasoned equity offering (SEO)C) initial public offering (IPO)D) seasoned offering (SO)Answer: CDiff: 1Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities6) Which of the below statements is FALSE?A) A secondary common stock offering is an offering of common stock that had been issued in the past by the corporation.B) For a secondary offering, the range for the gross spread as a percentage of the amount raised is between 3% and 6%.C) For traditional bond offerings, the gross spread as a percentage of the principal is around 100 basis points.D) The typical underwritten transaction involves so much risk of capital loss that a single investment banking firm undertaking it alone would be exposed to the danger of losing a significant portion of its capital.Answer: CComment: For traditional bond offerings, the gross spread as a percentage of the principal is around 50 basis points.Diff: 2Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.2 the risk associated with the underwriting of a security2 Regulation of the Primary Market1) Underwriting activities are regulated by the ________.A) Initial Public Offerings Market (IPOM).B) Securities and Exchange Commission (SEC).C) Investment Banking Industry (IBI).D) Federal Bureau of Investigation (FBI).Answer: ADiff: 1Topic: 13.2 Regulation of the Primary MarketObjective: 13.4 how the SEC regulates the distribution of newly issued securities2) The type of information contained in the registration statement includes ________.A) the nature of the business of the issuer and key provisions or features of the security.B) the nature of the investment risks associated with the security and the background of management.C) the nature of the business of the issuer and the background of management.D) All of theseAnswer: DComment: The type of information contained in the registration statement is the nature of the business of the issuer, key provisions or features of the security, the nature of the investment risks associated with the security, and the background of management.Diff: 2Topic: 13.2 Regulation of the Primary MarketObjective: 13.5 what a registration statement is3) The registration is actually divided into two parts. Part I is the ________. It is this part that is typically distributed to the public as an offering of the securities. Part II contains ________, which is not distributed to the public as part of the offering but is available from the SEC upon request.A) registration; additional informationB) prospectus; supplemental informationC) supplemental information; registrationD) beginning information; prospectusAnswer: BDiff: 2Topic: 13.2 Regulation of the Primary MarketObjective: 13.5 what a registration statement is4) The Securities Act of 1933 ________.A) does not provide for penalties in the form of fines and/or imprisonment if the information provided is inaccurate or material information is omitted.B) governs the issuance of securities.C) provides that investors who purchase the security are entitled to sue the issuer but not the underwriter to recover damages if they incur a loss as a result of the misleading information. D) provides that financial statements must be included after the registration statement. Answer: BComment: The Securities Act of 1933 governs the issuance of securities. The act requires that a registration statement be filed with the SEC by the issuer of a security. Financial statements must be included in the registration statement, and they must be certified by an independent public accountant. The act provides for penalties in the form of fines and/or imprisonment if the information provided is inaccurate or material information is omitted. Moreover, investors who purchase the security are entitled to sue the issuer to recover damages if they incur a loss as a result of the misleading information. The underwriter may also be sued if it can be demonstrated that the underwriter did not conduct a reasonable investigation of the information reported by the issuer. One of the most important duties of an underwriter is to perform due diligence.Diff: 2Topic: 13.2 Regulation of the Primary MarketObjective: 13.4 how the SEC regulates the distribution of newly issued securities5) Which of the below statements is TRUE?A) The filing of a registration statement with the SEC means that the security can be offered to the public.B) When the SEC declares the registration statement is "effective," it means that an amendment to the registration statement can be filed.C) The registration statement must be reviewed and approved by the SEC's Division of Corporate Finance before a public offering can be made.D) The approval of the SEC means that the securities have investment merit or are properly priced or that the information is accurate.Answer: CComment: The filing of a registration statement with the SEC does not mean that the security can be offered to the public. The registration statement must be reviewed and approved by the SEC’s Division of Corporate Finance before a public offering can be made. Typically, the staff of this division will find a problem with the registration statement. The staff then sends a "letter of comments" or "deficiency letter" to the issuer explaining the problem it has encountered. The issuer must remedy any problem by filing an amendment to the registration statement. If the staff is satisfied, the SEC will issue an order declaring that the registration statement is "effective," and the underwriter can solicit sales. The approval of the SEC, however, does not mean that the securities have investment merit or are properly priced or that the information is accurate. It merely means that the appropriate information appears to have been disclosed. Diff: 3Topic: 13.2 Regulation of the Primary MarketObjective: 13.5 what a registration statement is6) A red herring is ________.A) a period of waiting for SEC approval.B) an amended prospectus.C) a preliminary prospectus.D) a prospectus printed fully in red ink.Answer: CComment: During the waiting period, the SEC does allow the underwriters to distribute a preliminary prospectus. Because the prospectus has not become effective, its cover page states this in red ink and, as a result, the preliminary prospectus is commonly called a red herring. Diff: 2Topic: 13.2 Regulation of the Primary MarketObjective: 13.4 how the SEC regulates the distribution of newly issued securities3 Variations in the Underwriting Process1) Not all deals are underwritten using the traditional syndicate process. For example, variations in the United States, the Euromarkets, and foreign markets include ________.A) the auction process and rights offering for the underwriting of bonds.B) the bought deal of the Eurostock market.C) a rights offering for underwriting common stock.D) All of theseAnswer: CComment: Not all deals are underwritten using the traditional syndicate process we have described. Variations in the United States, the Euromarkets, and foreign markets include the bought deal for the underwriting of bonds, the auction process for both stocks and bonds, and a rights offering for underwriting common stock.Diff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.3 the different types of underwriting arrangements2) The mechanics of a bought deal are that ________.A) the lead manager or a group of managers offers a potential issuer of debt securities a firm bid to purchase an undetermined amount of the securities with an interest (coupon) rate and maturity to be announced later.B) the issuer is given a month or more to accept or reject the bid.C) if the bid is rejected, the underwriting firm has bought the deal.D) the underwriter can sell the securities to other investment banking firms for distribution to their clients and/or distribute the securities to its clients.Answer: DComment: The mechanics of a bought deal are as follows. The lead manager or a group of managers offers a potential issuer of debt securities a firm bid to purchase a specified amount of the securities with a certain interest (coupon) rate and maturity. The issuer is given a day or so (maybe even only a few hours) to accept or reject the bid. If the bid is accepted, the underwriting firm has bought the deal. It can, in turn, sell the securities to other investment banking firms for distribution to their clients and/or distribute the securities to its clients. Typically, the underwriting firm that buys the deal will have presold most of the issue to its institutional clients.Diff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.7 what is a bought deal underwriting for a bond issue, and why it is used3) A consequence of ________ is that underwriting firms need to expand their capital so that they can commit greater amounts of funds to such deals.A) accepting auction dealsB) rejecting bought dealsC) accepting bought dealsD) rejecting auction dealsAnswer: CDiff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.5 what a registration statement is4) A variation for underwriting securities is the auction process. In this method, ________.A) the issuer announces the terms of the issue, and interested parties submit bids for part of the issue.B) the auction form is mandated for certain securities of regulated public utilities but not for municipal debt obligations.C) the issuer announces the terms of the issue, and interested parties submit bids for the entire issue.D) mandated for many municipal debt obligations but not for certain securities of regulated public utilities.Answer: CComment: A variation for underwriting securities is the auction process. In this method, the issuer announces the terms of the issue, and interested parties submit bids for the entire issue. The auction form is mandated for certain securities of regulated public utilities and for many municipal debt obligations. It is more commonly referred to as a competitive bidding underwriting.Diff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.3 the different types of underwriting arrangements5) In a variant of the auction process, a security is allocated to bidders from the highest bid price (________) to the lower ones (________) until the entire issue is allocated.A) (highest yield in the case of a bond); (higher yield in the case of a bond)B) (lowest yield in the case of a bond); (higher yield in the case of a bond)C) (lowest yield in the case of a bond); (lower yield in the case of a bond)D) (highest yield in the case of a bond); (lower yield in the case of a bond)Answer: BComment: The security is then allocated to bidders from the highest bid price (lowest yield in the case of a bond) to the lower ones (higher yield in the case of a bond) until the entire issue is allocated.Diff: 3Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.3 the different types of underwriting arrangements6) Suppose that an issuer is offering $600 million of a bond issue, and nine bidders submit theA) The first five bidders (A, B, C, D, and E) will be allocated the amount for which they bid because they submitted the lowest-yield bids. In total, they will receive $595 million of the $600 million to be issued.B) After allocating $420 million to the highest three bidders, then $180 million can be allocated to the next two highest bidders.C) The lowest bidders will receive an amount proportionate to the amount for which they bid.D) After allocating $595 million to the highest bidders, then $5 million can be allocated to the next lowest bidders.Answer: BComment: If we allocate $420 million to the highest three bidders, then $180 million cannot be allocated to the next two highest bidders because they only have bid for $175 million.Diff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.8 what a competitive bidding underwriting is7) When all bidders buy the amount allocated to them, then the auction is referred to ________.A) as a multiple-price auction or a Dutch auction.B) as a single-price auction or a German auction.C) as a single-price auction or a Dutch auction.D) as a multiple-price auction or a German auction.Answer: CDiff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.8 what a competitive bidding underwriting is8) Which of the below statements is FALSE?A) The value of a right can be found by calculating the difference between the price of a share before the rights offering and the price of a share after the rights offering.B) The difference between the price before the rights offering and after the rights offering expressed as a percentage of the original price is called the concentration effect of the rights issue.C) Value of a right = Share price rights on - Share price ex rightsD) Value of a right = Price before rights offering - Price after rights offeringAnswer: BComment: The difference between the price before the rights offering and after the rights offering expressed as a percentage of the original price is called the dilution effect of the rights issue.Diff: 3Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.9 what a rights offering for the sale of common stock is9) Which of the below statements is FALSE?A) Using an auction allows corporate issuers to place newly issued debt obligations directly with institutional investors rather than follow the indirect path of using an underwriting firm.B) By dealing with just a few institutional investors, investment bankers argue, issuers cannot be sure of obtaining funds at the lowest cost.C) A preemptive right grants existing shareholders the right to buy some proportion of the new shares issued at a price below market value.D) For the shares sold via a preemptive rights offering, the underwriting services of an investment banker are needed.Answer: DComment: For the shares sold via a preemptive rights offering, the underwriting services of an investment banker are not needed.Diff: 2Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.8 what a competitive bidding underwriting is4 Private Placement of Securities1) In addition to underwriting securities for distribution to the public, securities may be placed with a limited number of institutional investors such as ________.A) insurance companies.B) investment companies.C) pension funds.D) All of theseAnswer: DDiff: 2Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement2) ________ are the major investors in private placements.A) Life insurance companies .B) Credit Unions.C) Pension funds.D) Auto insurance companies.Answer: ADiff: 2Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement3) The Securities Act of 1933 does not provide specific guidelines to identify what is a________.A) private security.B) public placement.C) public offering.D) private offering.Answer: DDiff: 2Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement4) In 1982, the SEC adopted Regulation D,which ________.A) exempts securities sold only within a state.B) states that if the offering is for $1 million or less, the securities need not be registeredC) sets forth the guidelines that determine if an issue is qualified for exemption from registration.D) exempts from registration "transactions by an issuer not involving any public offering." Answer: CComment: Public and private offerings of securities differ in terms of the regulatory requirements that the issuer must satisfy. The Securities Act of 1933 and the Securities Exchange Act of 1934 require that all securities offered to the general public must be registered with the SEC, unless there is a specific exemption. The Securities Acts allow three exemptions from federal registration. First, intrastate offerings–that is, securities sold only within a state–are exempt. Second, there is a small- offering exemption (Regulation A). Specifically, if the offering is for $1 million or less, the securities need not be registered. Finally, Section 4(2) of the 1933 act exempts from registration "transactions by an issuer not involving any public offering." At the same time, the 1933 act does NOT provide specific guidelines to identify what is a private offering or placement. In 1982, the SEC adopted Regulation D, which sets forth the guidelines that determine if an issue is qualified for exemption from registration.Diff: 2Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement5) Investment banking firms assist in the private placement of securities by ________.A) working with the issuer and potential investors on the design and pricing of the security.B) lining up the investors but not designing or pricing the issue.C) designing the issue but not lining up the investors or pricing the issue.D) participating in the transaction on a fixed efforts underwriting arrangementAnswer: AComment: Investment banking firms assist in the private placement of securities in several ways. They work with the issuer and potential investors on the design and pricing of the security. Often, it has been in the private placement market that investment bankers first design new security structures. Field testing of many of the innovative securities that we describe in this book occurred in the private placement market. The investment bankers may be involved with lining up the investors as well as designing the issue. Or, if the issuer has already identified the investors, the investment banker may serve only in an advisory capacity. An investment banker can also participate in the transaction on a best efforts underwriting arrangement.Diff: 2Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement6) In April 1990, the SEC Rule 144A became effective and ________.A) eliminated the five-year holding period by permitting large institutions to trade securities acquired in a private placement among themselves by registering these securities with the SEC.B) eliminated the two-year holding period by disallowing large institutions to trade securities acquired in a private placement among themselves without having to register these securities with the SEC.C) eliminated the two-year holding period by permitting large institutions to trade securities acquired in a private placement among themselves without having to register these securities with the SEC.D) added the two-year holding period by permitting small institutions to trade securities acquired in a public placement among themselves without having to register these securities with the SEC. Answer: CComment: eliminated the two-year holding period by permitting large institutions to trade securities acquired in a private placement among themselves without having to register these securities with the SEC.Diff: 2Topic: 13.4 Private Placement of SecuritiesObjective: 13.11 the reason for Rule 144A and its potential impact on the private placement market7) In regards to Rule 144a, which of the below statements is FALSE?A) Rule 144A encouraged non-U.S. corporations to issue securities in the U.S. private placement market by relaxing the requirement to hold the securities for two years.B) Rule 144A encourages non-U.S. corporations to issue securities in the U.S. private placement market by relaxing the requirement to furnish necessary disclosure set forth by U.S. securities laws.C) Rule 144A improved liquidity, reducing the cost of raising funds.D) Rule 144A improved the liquidity of securities acquired by all institutional investors in a private placement.Answer: DComment: Rule 144A encourages non-U.S. corporations to issue securities in the U.S. private placement market for two reasons. First, it will attract new large institutional investors into the market that were unwilling previously to buy private placements because of the requirement to hold the securities for two years. Such an increase in the number of institutional investors may encourage non-U.S. entities to issue securities. Second, foreign entities were unwilling to raise funds in the United States prior to establishment of Rule 144A because they had to register their securities and furnish the necessary disclosure set forth by U.S. securities laws. Private placement requires less disclosure. Rule 144A also improves liquidity, reducing the cost of raising funds. SEC Rule 144A improves the liquidity of securities acquired by certain institutional investors in a private placement.Diff: 3Topic: 13.4 Private Placement of SecuritiesObjective: 13.11 the reason for Rule 144A and its potential impact on the private placement marketTrue/False Questions1 The Traditional Process for Issuing New Securities1) Because of the low risks associated with the underwriting of securities, an underwriting syndicate and a selling group are rarely formed.Answer: FALSEComment: Because of the risks associated with the underwriting of securities, an underwriting syndicate and a selling group are typically formed.Diff: 1Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.2 the risk associated with the underwriting of a security2) The gross spread earned by the underwriter depends on numerous factors.Answer: TRUEDiff: 1Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities3) Depending on the type of underwriting agreement, the underwriting function may expose the investment banking firm to the risk of selling the securities to the public at a price greater than the price paid to the issuer.Answer: FALSEComment: Depending on the type of underwriting agreement, the underwriting function may expose the investment banking firm to the risk of selling the securities to the public at a price less than the price paid to the issuer.Diff: 1Topic: 13.1 The Traditional Process for Issuing New SecuritiesObjective: 13.1 the role investment bankers play in the distribution of newly issued securities 2 Regulation of the Primary Market1) Rule 415 permits certain issuers to file a single registration document indicating that they intend to sell a certain amount of a certain class of securities at one or more times within the next two years.Answer: TRUEDiff: 1Topic: 13.2 Regulation of the Primary MarketObjective: 13.4 how the SEC regulates the distribution of newly issued securities2) Rule 415 is popularly referred to as the closet registration rule because the securities can be viewed as sitting in the "closet," and can be taken out of the closet and sold to the public without obtaining additional SEC approval.Answer: FALSEComment: Rule 415 is popularly referred to as the shelf registration rule because the securities can be viewed as sitting on a “shelf,” and can be taken off that shelf and sold to the public without obtaining additional SEC approval.Diff: 1Topic: 13.2 Regulation of the Primary MarketObjective: 13.6 the impact of the SEC Rule 415 (shelf registration)3) The time interval between the initial filing of the registration statement and the time the registration statement becomes effective is referred to as the waiting period.Answer: TRUEDiff: 1Topic: 13.2 Regulation of the Primary MarketObjective: 13.4 how the SEC regulates the distribution of newly issued securities3 Variations in the Underwriting Process1) A corporation can offer existing shareholders new shares in a preemptive rights offering, and using a standby underwriting arrangement, the corporation can have an investment banking firm agree to distribute any shares not subscribed to.Answer: TRUEDiff: 1Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.3 the different types of underwriting arrangements2) An offering of a new security cannot be made by means of an auction process.Answer: FALSEComment: An offering of a new security can be made by means of an auction process.Diff: 1Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.8 what a competitive bidding underwriting is3) A rights offering ensures that current shareholders may maintain their proportionate equity interest in the corporation.Answer: TRUEDiff: 1Topic: 13.3 Variations in the Underwriting ProcessObjective: 13.9 what a rights offering for the sale of common stock is4 Private Placement of Securities1) Investment bankers will typically work with issuers in the design of a security for a private placement and line up the potential investors.Answer: TRUEDiff: 1Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement2) Congress specifies the conditions that must be satisfied to qualify for a private placement. Answer: FALSEComment: The SEC specifies the conditions that must be satisfied to qualify for a private placement.Diff: 1Topic: 13.4 Private Placement of SecuritiesObjective: 13.10 the advantages and disadvantages from an issuer's perspective of a private placement。
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Common stock Preferred stock Foreign stock
Debt vs. Equity
Debt Instruments
Fixed dollar payments (‘fixed income’) Examples include loans, bonds
Equity Claims
Equity holders bear inflation risk Debt holders bear default risk Both may bear exchange rate risk
Role of (Financial) Markets
Provide liquidity: buyers and sellers all in one ‘place’. price discovery efficient resource allocation Reduce transactions costs:
search costs information costs (market efficiency)
Financial Market Participants
Households Business units Federal, state, and local governments Government agencies International organizations (e.g. World bank) Regulators (broader definition)
Classification of Global Financial Markets
Internal Market (= national market)
External Market (= international, offshore or Euromarket): securities
offered outside single jurisdiction to investors
Intangible Assets
Claim to future income generated (ultimately) by tangible asset(s) Examples include financial assets
Types of Financial Assets
Bank loans Government bonds Corporate bonds Municipal bonds Foreign bond
Some Investment Risks
Purchasing power risk = inflation risk Default risk = credit risk Exchange rate risk = currency risk
Role of Financial Assets
Transfer funds from those with more money than projects to those with more projects than money. Share unavoidable risk associated with cash flows.
Globalization of Financial Markets
In general, easier for investors to move capital internationally Causes:
Deregulation (liberalization) of financial markets (e.g. currency controls) Technological advances Increased role of institutional investors (economies of scale)
The price or value of a financial asset is equal to the present value of all expected future cash flows.
Expected rate of return
Risk of expected cash flow
May be lower transactions costs Can be faster to transact than cash market Greater liquidity Allows great scope for financial innovation…
Classification of Financial Markets
Nature of asset: debt vs. equity markets Maturity: money (short) vs. capital (long) markets Seasoning: primary vs. secondary markets Structure: auction vs. over-the-coun
The sort of thing we want to understand better:
/news/uk-16558551
Types of Assets
Tangible Assets
Value is based on physical properties Examples include buildings, land, machinery
Derivatives Market
Derivatives’ value depends on underlying (financial) asset Futures/forward contracts: parties agree to buy/sell at an agreed price and date.
Dollar payment is based on earnings Residual (varying) claims Examples include common stock, partnership share (e.g. Dragons Den)
Price of Financial Asset and Risk
Options contracts: rights (not obligations)
to buy (call) or sell (put) at an agreed price on/by an agreed date.
Role of Derivative Instruments
Buy/sell risk (e.g. purchasing power risk, interest rate risk, exchange rate risk) Other advantages:
Limited fund availability in internal market (esp. in poorer countries) Reduced cost of funds Diversifying funding sources (portfolio reduces risk)-reduce reliance on domestic investors
in multiple countries
Domestic Market: issuers domiciled in the country
Foreign Market: issuers domiciled abroad
Motivation for Using Foreign Markets and Euromarkets