货币银行学 章节题库 ch14
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ECON320Chapter 14 Practice Test Professor C. James Hueng
1)A tool for managing interest rate risk that requires exchange of payment streams is a
A)macro hedge.
B)futures contract.
C)swap.
D)forward contract.
E)micro hedge.
2)A financial contract that obligates one party to exchange a set of payments it owns for another set of payments
owned by another party is called a
A)hedge.B)swap.C)call option.D)put option.
3)A swap that involves the exchange of one set of interest payments for another set of interest payments is called
a(n)
A)currency swap.B)national swap.C)swaptions.D)interest rate swap.
4)If Second National Bank has more rate-sensitive assets than rate-sensitive liabilities, it can reduce interest rate
risk with a swap that requires Second National to
A)receive fixed rate while paying floating rate.B)both receive and pay fixed rate.
C)pay fixed rate while receiving floating rate.D)both receive and pay floating rate.
5)If Second National Bank has more rate-sensitive liabilities then rate-sensitive assets, it can reduce interest rate
risk with a swap that requires Second National to
A)pay fixed rate while receiving floating rate.B)receive fixed rate while paying floating rate.
C)both receive and pay fixed rate.D)both receive and pay floating rate.
6)If a bank has more rate-sensitive assets than rate-sensitive liabilities
A)it reduces interest rate risk by swapping rate-sensitive income for fixed rate income.
B)it increases interest rate risk by swapping rate-sensitive income for fixed rate income.
C)it reduces interest rate risk by swapping fixed rate income for rate-sensitive income.
D)it cannot reduce its interest rate risk.
E)it neutralizes interest rate risk by receiving and paying fixed-rate streams.
7)Financial derivatives include
A)bonds.B)futures.C)stocks.D)none of the above.
8)By hedging a portfolio, a bank manager
A)reduces interest rate risk.B)increases the probability of gains.
C)increases exchange rate risk.D)increases reinvestment risk.
9)Hedging risk for a long position is accomplished by
A)taking a neutral position.
B)taking another long position.
C)taking a short position.
D)taking additional long and short positions in equal amounts.
E)none of the above.
10)A contract that requires the investor to buy securities on a future date is called a
A)cross.B)short contract.C)hedge.D)long contract.
11)A person who agrees to buy an asset at a future date has gone
A)short.B)even.C)long.D)ahead.E)back.