米什金 货币金融学 英文版习题答案chapter 2英文习题
金融场学双语题库及答案米什金金融场与机构

Financial Markets and Institutions^ 8e (Mishkin)Chapter 1 Why Study Financial Markets and Institutions?1.1Multiple Choice1)Financial maikets and institutionsA)involve the movement of huge quantities of money.B)affect the profits of businesses.C)affect the types of goods and sendees produced in an economy.D)do all of the above.E)do only A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition2)Financial maiket activities affectA)peisonal wealth.B)spendmg decisions by individuals and busuiess films.C)the econom^s location in the business cycle.D)all of the above.Answer: DTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition3)Maikets m which hinds are transfened fiom those who have excess fiinds available to those who have a shortage of available fluids are calledA)conunodity maikets.B)fluids maikets.C)derivative exchange maikets.D)financial maikets.Answer: DTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition4)The price paid fbr the rental of bonowed fluids (usually expressed as a percentage of the rental of $100 per year) is conunoiily lefened to as theA)inflation rate.B)exchange rate.C)interest rate.D)aggregate price level.Answer: CTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition5)The bond maikets are impoitant becauseA)they are easily the most widely followed financial maikets m the Umted States.B)they are the maikets where mteiest rates are detemiined.C)they are the maikets where foreign exchange rates are detemimed.D)all of the above.Answer: BTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition6)hiterest rates are impoilant to financial institutions since an interest rate mcrease the cost of acquumg fiinds and the income from assets.A)decreases; decreasesB)mcieases; increasesC)decreases; incieasesD)increases; decreasesAnswer: BTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition7)Typically, increasing mteiest ratesA)discourages individuals fiom saving.B)discourages coiporate mvestments.C)encourages corporate expansion.D)encourages corporate bonowing.E)none of the above.Answer: BTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition8)Compaied to mteiest rates on long-term U.S. govenmient bonds, interest rates on fluctuate more and are lower on average.A)medium-quality coiporate bondsB)low-quality coiporate bondsC)lugh-quality coiporate bondsD)tluee-montli Treasuiy billsE)none of the aboveAnswer: DTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition9)Compaied to mterest rates on long-term U.S. govenmient bonds, interest rates on tluee-month Treasury bills fluctuate and are on average.A)more; lowerB)less; lowerC)more; lugherD)less; higherAnswer: ATopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition10)The stock maiket is important becauseA)it is where interest rates are determined.B)it is the most widely followed financial maiket in the United States.C)it is where foreign exchange rates are deteimined.D)all of the above.Answer: BTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition11)Stock prices smce the 1980s have beenA)relatively stable, trending upward at a steady pace.B)relatively stable, tiending downward at a moderate rate.C)extiemely volatile.D)unstable, trendmg downwaid at a moderate rate.Answer: CTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition12)The largest one-day drop m the histoiy of the Aineiican stock markets occuned in A) 1929.B)1987.C)2000.D)2001.Answer: BTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition13) A declining stock market index due to lower share pricesA)reduces people's wealth and as a result may reduce then willingness to spend.B)mcieases people's wealth and as a result may increase their willmgness to spend.C)decreases the amount of hinds that business films can raise by sellmg newly issued stock.D)both A and C of the above.E)both B and C of the above.Answer: DTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition14)Changes m stock pricesA)affect people's wealth and their willmgness to spend.B)affect films' decisions to sell stock to finance investment spending.C)are chaiacteiized by considerable fluctuations.D)all of the above.E)only A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition15)(I) Debt maikets are often refened to genencally as the bond maiket.(II) A bond is a security that is a claim on the earnings and assets of a corporation.A)(I) is tine, (II) false.B)(I) is false, (II) tine.C)Both are tme.D)Both are false.Answer: ATopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition16) (I) A bond is a debt secunty that pionuses to make payments peiiodically for a specified penod of tune. (II) A stock is a secunty that is a claim on the eanimgs and assets of a coipoiation.A)(I) is true, (II) false.B)(I) is false, (II) tine.C)Both are tme.D)Both are false.Answer: CTopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition17)The piice of one country's cunency in terms of anothei J s is calledA)the foreign exchange rate.B)the interest rate.C)the Dow Jones mdustrial average.D)none of the above.Answer: ATopic: Chapter 1.1 Why Study Fmancial MaiketsQuestion Status: Previous Edition18) A stronger dollar benefits and hints.A)Aineiican busuiesses; Aineiican consumeisB)Aineiican busmesses; foreign businessesC)Aineiican consumeis; Aineiican busmessesD)foreign businesses; Ameiican consumeisAnswer: CTopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition19) A weaker dollar benefits and hurts.A)Aineiican busmesses; Aineiican consumeisB)Aineiican busmesses; foieign consumersC)Aineiican consumeis; Aineiican busmessesD)foreign businesses; Ameiican consumersAnswer: ATopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition20)From 1980 to early 1985 the dollar in value, thereby benefitingAinencan.A)appreciated; businessesB)appreciated; consumersC)depreciated; businessesD)depreciated; consumersAnswer: BTopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition21)hi generaL fiom 2001 tluough 2013, the dollar m value relative tomajor foreign cuuencies.A)appreciatedB)depreciatedC)lemained about the sameAnswer: BTopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: New Question22)Money is defined asA)anythmg that is geneially accepted in payment fbr goods and sendees or in the repayment of debt.B)bills of exchange.C) a nskless repositoiy of spending power.D)all of the above.E)only A and B of the above.Answer: ATopic: Chaptei 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition23)The organization responsible fbf the conduct of monetaiy policy in the United States is theA)Comptioller of the Currency.B)U.S. Treasuiy.C)Federal Reserve System.D)Bureau of Monetaiy Affaus.Answer: CTopic: Chaptei 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition24)The central bank of the United States isA)Citicoip.B)The Fed.C)Bank of America.D)The Tieasuiy.E)none of the above.Answer: BTopic: Chaptei 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition25)Monetaiy policy is cluefly concerned withA)how much money businesses earn.B)the level of mterest rates and the nation's money supply.C)how much money people pay in taxes.D)whether people have saved enough money for letnement.Answer: BTopic: Chaptei 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition26)Econonusts group conuneicial banks, savings and loan associations, credit unions, mutual ftinds, mutual savings banks, msuiance companies, pension fiinds, and finance companies together under the heading financial inteniiedianes. Financial mtermedianes A)act as middlemen, bonowmg ftinds fiom those who have saved and lending these fluids to others.B)produce nothing of value and are therefore a drain on society's resoui ces.C)help promote a more efficient and dynamic economy.D)do all of the above.E)do only A and C of the above.Answer: ETopic: Chaptei 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition27)Econonusts group conuneicial banks, savings and loan associations, credit unions, mutual fiinds, mutual savings banks, msuiance companies, pension fiinds, and finance companies together under the heading financial inteimedianes. Financial mtermedianesA)act as middlemen, bonowmg fiinds fiom those who have saved and lending these fimds to others.B)play an important role in detemmuiig the quantity of money m the economy.C)help promote a more efficient and dynanuc economy.D)do all of the above.E)do only A and C of the above.Answer: DTopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition28)Banks are unpoitant to the study of money and the economy because they A) provide a chaimel for Imkrng those who want to save with those who want to mvest.B)have been a source of financial nmovation that is expandmg the alternatives available to those wanting to mvest then money.C)are the only financial mstitution to play a role in detemuiHiig the quantity of money in the economy.D)do all of the above.E)do only A and B of the above.Answer: ETopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition29)Banks, savings and loan associations, mutual savings banks, and credit unions A) are no longer unportant players in financial intemiediation.B)have been providing services only to small depositors since deregulation.C)have been adept at iimovating in response to changes in the regulatoiy envuomnent.D)all of the above.E)only A and C of the above.Answer: CTopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition30)(I) Banks are financial intennediaiies that accept deposits and make loans.(II) The tenn n baiiks n includes films such as commercial banks, savmgs and loan associations, mutual savings banks, credit unions, msuiance companies, and pensionfluids.A)(I) is true, QI) false.B)(I) is false, (II) tine.C)Both are tme.D)Both are false.Answer: ATopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition31)was the stock market^ worst one-day chop in histoiy in the 1980s.A)Black FridayB)Black MondayC)Blackout DayD)none of the aboveAnswer: BTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition32)The largest financial intennedianes areA)insuiance companies.B)finance compames.C)banks.D)all of the above.Answer: CTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition33)hi recent yearsA)interest rates have lemained constant.B)the success of financial institutions has leached levels unpiecedented smce the Great Depiession.C)stock markets have crashed.D)all of the above.Answer: CTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition34) A securityA)is a claun oi puce of propeity that is subject to ownership.B)piomises that payments will be made penodically fbr a specified penod of time.C)is the piice paid fbr the usage of ftinds.D)is a claun on the issuers fiituie mcome.Answer: DTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition35)are an example of a financial institution.A)BanksB)hisuiance companiesC)Fmance companiesD)All of the aboveAnswer: DTopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition36)Monetaiy policy affectsA)interest rates.B)mflation.C)business cycles.D)all of the above.Answer: DTopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition37) A using stock market index due to higher share pricesA)increases people's wealth and as a result may increase their willmgness to spend.B)uicieases the amount of fluids that business firms can raise by selling newly issued stock.C)decreases the amount of hinds that business films can raise by selling newly issued stock.D)both A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition38)From the peak of the high-tech bubble in 2000, the stock market byovei by late 2002.A)collapsed; 75%B)rose; 35%C)collapsed; 30%D)rose; 50%Answer: CTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition39)The Dow fell below 7,000 m 2009, only to start a bull market run, reaching new highs above m 2013.A)12,000B)10,000C) 15,000D) 19,000Answer: CTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: New Question1.2 Tme/False1)Money is anything accepted by anyone as payment fbr services or goods.Answer: TRUETopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition2)hiterest rates are determined in the bond markets.Answer: TRUETopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition3) A stock is a debt secuiity that promises to make penodic payments fbr a specific period of time.Answer: FALSETopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition4)Monetaiy policy affects interest rates but has little effect on inflation oi busmess cycles.JAnswer: FALSETopic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition5)The govenunent orgamzation lesponsible for the conduct of monetaiy policy m the United States is the U.S. Treasuiy.Answer: FALSETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition6)hiterest rates can be accuiately described as the rental price of money.Answer: TRUETopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition7)Holding eveiytliuig else constant, as the dollar weakens vacations abroad become less attractive.Answer: TRUETopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition8)In recent years, financial markets have become more stable and less risky. Answer: FALSETopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition9)Financial innovation lias provided more options to both mvestors and bonowers. Answer: TRUETopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition10) A financial mtennediaiy borrows fiinds fiom people who have saved.Answer: TRUETopic: Chaptei 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition11)Holding eveiything else constant, as the dollar strengthens fbieigneis will buy more U.S. exports.Answer: FALSETopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition12)In a bull market stock prices are rising, on average.Answer: TRUETopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition13)Financial institutions are among the largest employers m the country and fiequently pay very high salaries.Answer: TRUETopic: Chaptei 1.3 Applied Managerial PerspectiveQuestion Status: Previous Edition14)Different interest rates have a tendency to move in unison.Answer: TRUETopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition15)Financial markets are what makes financial mstitutions work.Answer: FALSETopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition16)In recent years, financial markets have become more iisky. However, only a linuted number of tools (such as deiivatives) are available to assist in managing this lisk. Answer: FALSETopic: Chaptei 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition17)Although the internet has changed many aspects of oui lives, it hasn't proven veiy usefill for collectmg and/oi analyzmg financial and econonuc data.Answer: FALSETopic: Chapter 1.4 How We Study Fmancial Markets and InstitutionsQuestion Status: New Question1.3 Essay1)Have inteiest rates been more or less volatile m recent years? Why?Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition2)Why should consumers be concerned with movements in foreign exchange rates?Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition3)How does the value of the dollar affect the competitiveness of Aineiican busmesses? Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition4)What is monetaiy policy and who is responsible fbi its implementation?Topic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition5)What are financial intennediaiies and what do they do?Topic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition6)What is money?Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition7)How does a bond differ fiom a stock?Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition8)Why is the stock market so important to individuals, films, and the economy? Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition9)What is the cential bank and what does it do?Topic: Chapter 1.2 Why Study Fmancial InstitutionsQuestion Status: Previous Edition10)If you are plaiming a vacation to Europe, do you prefer a strong dollar or weak dollar relative to the euio? Why?JTopic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: Previous Edition11)How has the stock market peifbimed smce 2000?Topic: Chapter 1.1 Why Study Fmancial MarketsQuestion Status: New Question。
米什金 货币金融学 英文版习题答案chapter 3英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 3 What Is Money?3.1 Meaning of Money1) To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt.A) wealthB) incomeC) moneyD) creditAnswer: CAACSB: Application of Knowledge2) Money isA) anything that is generally accepted in payment for goods and services or in the repayment of debt.B) a flow of earnings per unit of time.C) the total collection of pieces of property that are a store of value.D) always based on a precious metal like gold or silver.Answer: AAACSB: Application of Knowledge3) Currency includesA) paper money and coins.B) paper money, coins, and checks.C) paper money and checks.D) paper money, coins, checks, and savings deposits.Answer: AAACSB: Analytical Thinking4) Even economists have no single, precise definition of money becauseA) money supply statistics are a state secret.B) the Federal Reserve does not employ or report different measures of the money supply.C) the "moneyness" or liquidity of an asset is a matter of degree.D) economists find disagreement interesting and refuse to agree for ideological reasons. Answer: CAACSB: Reflective Thinking5) The total collection of pieces of property that serve to store value is a person'sA) wealth.B) income.C) money.D) credit.Answer: AAACSB: Application of Knowledge6) A person's house is part of herA) money.B) income.C) liabilities.D) wealth.Answer: DAACSB: Analytical Thinking7) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.A) Money; incomeB) Wealth; incomeC) Income; moneyD) Money; wealthAnswer: DAACSB: Reflective Thinking8) ________ is a flow of earnings per unit of time.A) IncomeB) MoneyC) WealthD) CurrencyAnswer: AAACSB: Application of Knowledge9) An individual's annual salary is herA) money.B) income.C) wealth.D) liabilities.Answer: BAACSB: Analytical Thinking10) When we say that money is a stock variable, we mean thatA) the quantity of money is measured at a given point in time.B) we must attach a time period to the measure.C) it is sold in the equity market.D) money never loses purchasing power.Answer: AAACSB: Reflective Thinking11) The difference between money and income is thatA) money is a flow and income is a stock.B) money is a stock and income is a flow.C) there is no difference—money and income are both stocks.D) there is no difference—money and income are both flows.Answer: BAACSB: Reflective Thinking12) Which of the following is a TRUE statement?A) Money and income are flow variables.B) Money is a flow variable.C) Income is a flow variable.D) Money and income are stock variables.Answer: CAACSB: Reflective Thinking13) Which of the following statements uses the economists' definition of money?A) I plan to earn a lot of money over the summer.B) Betsy is rich—she has a lot of money.C) I hope that I have enough money to buy my lunch today.D) The job with New Company gave me the opportunity to earn more money.Answer: CAACSB: Analytical Thinking3.2 Functions of Money1) Of money's three functions, the one that distinguishes money from other assets is its function as aA) store of value.B) unit of account.C) standard of deferred payment.D) medium of exchange.Answer: DAACSB: Reflective Thinking2) If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts areA) bank deposits.B) reserves.C) money.D) loanable funds.Answer: CAACSB: Reflective Thinking3) ________ are the time and resources spent trying to exchange goods and services.A) Bargaining costsB) Transaction costsC) Contracting costsD) Barter costsAnswer: BAACSB: Application of Knowledge4) Compared to an economy that uses a medium of exchange, in a barter economyA) transaction costs are higher.B) transaction costs are lower.C) liquidity costs are higher.D) liquidity costs are lower.Answer: AAACSB: Reflective Thinking5) When compared to exchange systems that rely on money, disadvantages of the barter system includeA) the requirement of a double coincidence of wants.B) lowering the cost of exchanging goods over time.C) lowering the cost of exchange to those who would specialize.D) encouraging specialization and the division of labor.Answer: AAACSB: Reflective Thinking6) The conversion of a barter economy to one that uses moneyA) increases efficiency by reducing the need to exchange goods and services.B) increases efficiency by reducing the need to specialize.C) increases efficiency by reducing transactions costs.D) does not increase economic efficiency.Answer: CAACSB: Reflective Thinking7) Which of the following statements best explains how the use of money in an economy increases economic efficiency?A) Money increases economic efficiency because it is costless to produce.B) Money increases economic efficiency because it discourages specialization.C) Money increases economic efficiency because it decreases transactions costs.D) Money cannot have an effect on economic efficiency.Answer: CAACSB: Reflective Thinking8) When economists say that money promotes ________, they mean that money encourages specialization and the division of labor.A) bargainingB) contractingC) efficiencyD) greedAnswer: CAACSB: Reflective Thinking9) Money ________ transaction costs, allowing people to specialize in what they do best.A) reducesB) increasesC) enhancesD) eliminatesAnswer: AAACSB: Application of Knowledge10) For a commodity to function effectively as money it must beA) easily standardized, making it easy to ascertain its value.B) difficult to make change.C) deteriorate quickly so that its supply does not become too large.D) hard to carry around.Answer: AAACSB: Reflective Thinking11) All of the following are necessary criteria for a commodity to function as money EXCEPTA) it must deteriorate quickly.B) it must be divisible.C) it must be easy to carry.D) it must be widely accepted.Answer: AAACSB: Analytical Thinking12) Whatever a society uses as money, the distinguishing characteristic is that it mustA) be completely inflation proof.B) be generally acceptable as payment for goods and services or in the repayment of debt.C) contain gold.D) be produced by the government.Answer: BAACSB: Reflective Thinking13) All but the most primitive societies use money as a medium of exchange, implying thatA) the use of money is economically efficient.B) barter exchange is economically efficient.C) barter exchange cannot work outside the family.D) inflation is not a concern.Answer: AAACSB: Reflective Thinking14) Kevin purchasing concert tickets with his debit card is an example of the ________ function of money.A) medium of exchangeB) unit of accountC) store of valueD) specializationAnswer: AAACSB: Analytical Thinking15) When money prices are used to facilitate comparisons of value, money is said to function as aA) unit of account.B) medium of exchange.C) store of value.D) payments-system ruler.Answer: AAACSB: Analytical Thinking16) When there are many goods is that in a barter systemA) transactions costs are minimized.B) there exists a multiple number of prices for each good.C) there is only one store of value.D) exchange of services is impossible.Answer: BAACSB: Reflective Thinking17) In a barter economy the number of prices in an economy with N goods isA) [N(N - 1)]/2.B) N(N/2).C) 2N.D) N(N/2) - 1.Answer: AAACSB: Analytical Thinking18) If there are five goods in a barter economy, one needs to know ten prices in order to exchange one good for another. If, however, there are ten goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another.A) 20B) 25C) 30D) 45Answer: DAACSB: Analytical Thinking19) If there are four goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another.A) 8B) 6C) 5D) 4Answer: BAACSB: Analytical Thinking20) Because it is a unit of account, moneyA) increases transaction costs.B) reduces the number of prices that need to be calculated.C) does not earn interest.D) discourages specialization.Answer: BAACSB: Reflective Thinking21) Dennis notices that jackets are on sale for $99. In this case money is functioning as aA) medium of exchange.B) unit of account.C) store of value.D) payments-system ruler.Answer: BAACSB: Analytical Thinking22) As a store of value, moneyA) does not earn interest.B) cannot be a durable asset.C) must be currency.D) is a way of saving for future purchases.Answer: DAACSB: Analytical Thinking23) Patrick places his pocket change into his savings bank on his desk each evening. By his actions, Patrick indicates that he believes that money is aA) medium of exchange.B) unit of account.C) store of value.D) unit of specialization.Answer: CAACSB: Analytical Thinking24) ________ is the relative ease and speed with which an asset can be converted into a medium of exchange.A) EfficiencyB) LiquidityC) DeflationD) SpecializationAnswer: BAACSB: Application of Knowledge25) Increasing transactions costs of selling an asset make the assetA) more valuable.B) more liquid.C) less liquid.D) more moneylike.Answer: CAACSB: Reflective Thinking26) Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.A) moneyB) stockC) artworkD) goldAnswer: AAACSB: Reflective Thinking27) Of the following assets, the least liquid isA) stocks.B) traveler's checks.C) checking deposits.D) a house.Answer: DAACSB: Analytical Thinking28) Ranking assets from most liquid to least liquid, the correct order isA) savings bonds; house; currency.B) currency; savings bonds; house.C) currency; house; savings bonds.D) house; savings bonds; currency.Answer: BAACSB: Analytical Thinking29) People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money isA) extremely liquid.B) a unique good for which there are no substitutes.C) the only thing accepted in economic exchange.D) backed by gold.Answer: AAACSB: Reflective Thinking30) If the price level doubles, the value of moneyA) doubles.B) more than doubles, due to scale economies.C) rises but does not double, due to diminishing returns.D) falls by 50 percent.Answer: DAACSB: Analytical Thinking31) A fall in the level of pricesA) does not affect the value of money.B) has an uncertain effect on the value of money.C) increases the value of money.D) reduces the value of money.Answer: CAACSB: Analytical Thinking32) A hyperinflation isA) a period of extreme inflation generally greater than 50% per month.B) a period of anxiety caused by rising prices.C) an increase in output caused by higher prices.D) impossible today because of tighter regulations.Answer: AAACSB: Analytical Thinking。
货币金融学chapter 2英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 2 An Overview of the Financial System2.1 Function of Financial Markets1) Every financial market has the following characteristic.A) It determines the level of interest rates.B) It allows common stock to be traded.C) It allows loans to be made.D) It channels funds from lenders-savers to borrowers-spenders.Answer: DAACSB: Reflective Thinking2) Financial markets have the basic function ofA) getting people with funds to lend together with people who want to borrow funds.B) assuring that the swings in the business cycle are less pronounced.C) assuring that governments need never resort to printing money.D) providing a risk-free repository of spending power.Answer: AAACSB: Reflective Thinking3) Financial markets improve economic welfare becauseA) they channel funds from investors to savers.B) they allow consumers to time their purchase better.C) they weed out inefficient firms.D) they eliminate the need for indirect finance.Answer: BAACSB: Reflective Thinking4) Well-functioning financial marketsA) cause inflation.B) eliminate the need for indirect finance.C) cause financial crises.D) allow the economy to operate more efficiently.Answer: DAACSB: Reflective Thinking5) A breakdown of financial markets can result inA) financial stability.B) rapid economic growth.C) political instability.D) stable prices.Answer: CAACSB: Reflective Thinking6) The principal lender-savers areA) governments.B) businesses.C) households.D) foreigners.Answer: CAACSB: Application of Knowledge7) Which of the following can be described as direct finance?A) You take out a mortgage from your local bank.B) You borrow $2500 from a friend.C) You buy shares of common stock in the secondary market.D) You buy shares in a mutual fund.Answer: BAACSB: Analytical Thinking8) Assume that you borrow $2000 at 10% annual interest to finance a new business project. For this loan to be profitable, the minimum amount this project must generate in annual earnings isA) $400.B) $201.C) $200.D) $199.Answer: BAACSB: Analytical Thinking9) You can borrow $5000 to finance a new business venture. This new venture will generate annual earnings of $251. The maximum interest rate that you would pay on the borrowed funds and still increase your income isA) 25%.B) 12.5%.C) 10%.D) 5%.Answer: DAACSB: Analytical Thinking10) Which of the following can be described as involving direct finance?A) A corporation issues new shares of stock.B) People buy shares in a mutual fund.C) A pension fund manager buys a short-term corporate security in the secondary market.D) An insurance company buys shares of common stock in the over-the-counter markets. Answer: AAACSB: Analytical Thinking11) Which of the following can be described as involving direct finance?A) A corporation takes out loans from a bank.B) People buy shares in a mutual fund.C) A corporation buys a short-term corporate security in a secondary market.D) People buy shares of common stock in the primary markets.Answer: DAACSB: Analytical Thinking12) Which of the following can be described as involving indirect finance?A) You make a loan to your neighbor.B) A corporation buys a share of common stock issued by another corporation in the primary market.C) You buy a U.S. Treasury bill from the U.S. Treasury at .D) You make a deposit at a bank.Answer: DAACSB: Analytical Thinking13) Which of the following can be described as involving indirect finance?A) You make a loan to your neighbor.B) You buy shares in a mutual fund.C) You buy a U.S. Treasury bill from the U.S. Treasury at Treasury .D) You purchase shares in an initial public offering by a corporation in the primary market. Answer: BAACSB: Analytical Thinking14) Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.A) assets; liabilitiesB) liabilities; assetsC) negotiable; nonnegotiableD) nonnegotiable; negotiableAnswer: AAACSB: Reflective Thinking15) With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets.A) activeB) determinedC) indirectD) directAnswer: DAACSB: Application of Knowledge16) With direct finance, funds are channeled through the financial market from the ________ directly to the ________.A) savers, spendersB) spenders, investorsC) borrowers, saversD) investors, saversAnswer: AAACSB: Reflective Thinking17) Distinguish between direct finance and indirect finance. Which of these is the most important source of funds for corporations in the United States?Answer: With direct finance, funds flow directly from the lender/saver to the borrower. With indirect finance, funds flow from the lender/saver to a financial intermediary who then channels the funds to the borrower/investor. Financial intermediaries (indirect finance) are the major source of funds for corporations in the U.S.AACSB: Reflective Thinking2.2 Structure of Financial Markets1) Which of the following statements about the characteristics of debt and equity is FALSE?A) They can both be long-term financial instruments.B) They can both be short-term financial instruments.C) They both involve a claim on the issuer's income.D) They both enable a corporation to raise funds.Answer: BAACSB: Reflective Thinking2) Which of the following statements about the characteristics of debt and equities is TRUE?A) They can both be long-term financial instruments.B) Bond holders are residual claimants.C) The income from bonds is typically more variable than that from equities.D) Bonds pay dividends.Answer: AAACSB: Reflective Thinking3) Which of the following statements about financial markets and securities is TRUE?A) A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.B) A debt instrument is intermediate term if its maturity is less than one year.C) A debt instrument is intermediate term if its maturity is ten years or longer.D) The maturity of a debt instrument is the number of years (term) to that instrument's expiration date.Answer: DAACSB: Reflective Thinking4) Which of the following is an example of an intermediate-term debt?A) a fifteen-year mortgageB) a sixty-month car loanC) a six-month loan from a finance companyD) a thirty-year U.S. Treasury bondAnswer: BAACSB: Analytical Thinking5) If the maturity of a debt instrument is less than one year, the debt is calledA) short-term.B) intermediate-term.C) long-term.D) prima-term.Answer: AAACSB: Application of Knowledge6) Long-term debt has a maturity that isA) between one and ten years.B) less than a year.C) between five and ten years.D) ten years or longer.Answer: DAACSB: Application of Knowledge7) When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.A) bondsB) billsC) notesD) stockAnswer: DAACSB: Application of Knowledge8) Equity holders are a corporation's ________. That means the corporation must pay all of its debt holders before it pays its equity holders.A) debtorsB) brokersC) residual claimantsD) underwritersAnswer: CAACSB: Reflective Thinking9) Which of the following benefits directly from any increase in the corporation's profitability?A) a bond holderB) a commercial paper holderC) a shareholderD) a T-bill holderAnswer: CAACSB: Reflective Thinking10) A financial market in which previously issued securities can be resold is called a ________ market.A) primaryB) secondaryC) tertiaryD) used securitiesAnswer: BAACSB: Application of Knowledge11) An important financial institution that assists in the initial sale of securities in the primary market is theA) investment bank.B) commercial bank.C) stock exchange.D) brokerage house.Answer: AAACSB: Application of Knowledge12) When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the public.A) underwritesB) undertakesC) overwritesD) overtakesAnswer: AAACSB: Application of Knowledge13) Which of the following is NOT a secondary market?A) foreign exchange marketB) futures marketC) options marketD) IPO marketAnswer: DAACSB: Reflective Thinking14) ________ work in the secondary markets matching buyers with sellers of securities.A) DealersB) UnderwritersC) BrokersD) ClaimantsAnswer: CAACSB: Application of Knowledge15) A corporation acquires new funds only when its securities are sold in theA) primary market by an investment bank.B) primary market by a stock exchange broker.C) secondary market by a securities dealer.D) secondary market by a commercial bank.Answer: AAACSB: Reflective Thinking16) A corporation acquires new funds only when its securities are sold in theA) secondary market by an investment bank.B) primary market by an investment bank.C) secondary market by a stock exchange broker.D) secondary market by a commercial bank.Answer: BAACSB: Reflective Thinking17) An important function of secondary markets is toA) make it easier to sell financial instruments to raise funds.B) raise funds for corporations through the sale of securities.C) make it easier for governments to raise taxes.D) create a market for newly constructed houses.Answer: AAACSB: Reflective Thinking18) Secondary markets make financial instruments moreA) solid.B) vapid.C) liquid.D) risky.Answer: CAACSB: Reflective Thinking19) A liquid asset isA) an asset that can easily and quickly be sold to raise cash.B) a share of an ocean resort.C) difficult to resell.D) always sold in an over-the-counter market.Answer: AAACSB: Reflective Thinking20) The higher a security's price in the secondary market the ________ funds a firm can raise by selling securities in the ________ market.A) more; primaryB) more; secondaryC) less; primaryD) less; secondaryAnswer: AAACSB: Reflective Thinking21) When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called a(n)A) exchange.B) over-the-counter market.C) common market.D) barter market.Answer: AAACSB: Application of Knowledge22) In a(n) ________ market, dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.A) exchangeB) over-the-counterC) commonD) barterAnswer: BAACSB: Application of Knowledge23) Forty or so dealers establish a "market" in these securities by standing ready to buy and sell them.A) secondary stocksB) surplus stocksC) U.S. government bondsD) common stocksAnswer: CAACSB: Application of Knowledge24) Which of the following statements about financial markets and securities is TRUE?A) Many common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange. B) As a corporation gets a share of the broker's commission, a corporation acquires new funds whenever its securities are sold.C) Capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid.D) Prices of capital market securities are usually more stable than prices of money market securities, and so are often used to hold temporary surplus funds of corporations.Answer: AAACSB: Reflective Thinking25) A financial market in which only short-term debt instruments are traded is called the________ market.A) bondB) moneyC) capitalD) stockAnswer: BAACSB: Analytical Thinking26) Equity instruments are traded in the ________ market.A) moneyB) bondC) capitalD) commoditiesAnswer: CAACSB: Analytical Thinking27) Because these securities are more liquid and generally have smaller price fluctuations, corporations and banks use the ________ securities to earn interest on temporary surplus funds.A) money marketB) capital marketC) bond marketD) stock marketAnswer: AAACSB: Reflective Thinking28) Corporations receive funds when their stock is sold in the primary market. Why do corporations pay attention to what is happening to their stock in the secondary market? Answer: The existence of the secondary market makes their stock more liquid and the price in the secondary market sets the price that the corporation would receive if they choose to sell more stock in the primary market.AACSB: Reflective Thinking29) Describe the two methods of organizing a secondary market.Answer: A secondary market can be organized as an exchange where buyers and sellers meet in one central location to conduct trades. An example of an exchange is the New York Stock Exchange. A secondary market can also be organized as an over-the-counter market. In this type of market, dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices. An example of an over-the-counter market is the federal funds market.AACSB: Reflective Thinking2.3 Financial Market Instruments1) Prices of money market instruments undergo the least price fluctuations because ofA) the short terms to maturity for the securities.B) the heavy regulations in the industry.C) the price ceiling imposed by government regulators.D) the lack of competition in the market.Answer: AAACSB: Reflective Thinking2) U.S. Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity.A) premiumB) collateralC) defaultD) discountAnswer: DAACSB: Analytical Thinking3) U.S. Treasury bills are considered the safest of all money market instruments because there isa low probability ofA) defeat.B) default.C) desertion.D) demarcation.Answer: BAACSB: Analytical Thinking4) A debt instrument sold by a bank to its depositors that pays annual interest of a given amount and at maturity pays back the original purchase price is calledA) commercial paper.B) a certificate of deposit.C) a municipal bond.D) federal funds.Answer: BAACSB: Analytical Thinking5) A short-term debt instrument issued by well-known corporations is calledA) commercial paper.B) corporate bonds.C) municipal bonds.D) commercial mortgages.Answer: AAACSB: Analytical Thinking6) ________ are short-term loans in which Treasury bills serve as collateral.A) Repurchase agreementsB) Negotiable certificates of depositC) Federal fundsD) U.S. government agency securitiesAnswer: AAACSB: Analytical Thinking7) Collateral is ________ the lender receives if the borrower does not pay back the loan.A) a liabilityB) an assetC) a presentD) an offeringAnswer: BAACSB: Analytical Thinking8) Federal funds areA) funds raised by the federal government in the bond market.B) loans made by the Federal Reserve System to banks.C) loans made by banks to the Federal Reserve System.D) loans made by banks to each other.Answer: DAACSB: Analytical Thinking9) An important source of short-term funds for commercial banks are ________ which can be resold on the secondary market.A) negotiable CDsB) commercial paperC) mortgage-backed securitiesD) municipal bondsAnswer: AAACSB: Application of Knowledge10) Which of the following are short-term financial instruments?A) a repurchase agreementB) a share of Walt Disney Corporation stockC) a Treasury note with a maturity of four yearsD) a residential mortgageAnswer: AAACSB: Analytical Thinking11) Which of the following instruments are traded in a money market?A) state and local government bondsB) U.S. Treasury billsC) corporate bondsD) U.S. government agency securitiesAnswer: BAACSB: Analytical Thinking12) Which of the following instruments are traded in a money market?A) bank commercial loansB) commercial paperC) state and local government bondsD) residential mortgagesAnswer: BAACSB: Analytical Thinking13) Which of the following instruments is NOT traded in a money market?A) residential mortgagesB) U.S. Treasury BillsC) negotiable bank certificates of depositD) commercial paperAnswer: AAACSB: Analytical Thinking14) Bonds issued by state and local governments are called ________ bonds.A) corporateB) TreasuryC) municipalD) commercialAnswer: CAACSB: Application of Knowledge15) Equity and debt instruments with maturities greater than one year are called ________ market instruments.A) capitalB) moneyC) federalD) benchmarkAnswer: AAACSB: Application of Knowledge16) Which of the following is a long-term financial instrument?A) a negotiable certificate of depositB) a repurchase agreementC) a U.S. Treasury bondD) a U.S. Treasury billAnswer: CAACSB: Analytical Thinking17) Which of the following instruments are traded in a capital market?A) U.S. Government agency securitiesB) negotiable bank CDsC) repurchase agreementsD) U.S. Treasury billsAnswer: AAACSB: Analytical Thinking18) Which of the following instruments are traded in a capital market?A) corporate bondsB) U.S. Treasury billsC) negotiable bank CDsD) repurchase agreementsAnswer: AAACSB: Analytical Thinking19) Which of the following are NOT traded in a capital market?A) U.S. government agency securitiesB) state and local government bondsC) repurchase agreementsD) corporate bondsAnswer: CAACSB: Analytical Thinking20) The most liquid securities traded in the capital market areA) corporate bonds.B) municipal bonds.C) U.S. Treasury bonds.D) mortgage-backed securities.Answer: CAACSB: Reflective Thinking21) Mortgage-backed securities are similar to ________ but the interest and principal payments are backed by the individual mortgages within the security.A) bondsB) stockC) repurchase agreementsD) negotiable CDsAnswer: AAACSB: Application of Knowledge2.4 Internationalization of Financial Markets1) Equity of U.S. companies can be purchased byA) U.S. citizens only.B) foreign citizens only.C) U.S. citizens and foreign citizens.D) U.S. mutual funds only.Answer: CAACSB: Diverse and multicultural work environments2) One reason for the extraordinary growth of foreign financial markets isA) decreased trade.B) increases in the pool of savings in foreign countries.C) the recent introduction of the foreign bond.D) slower technological innovation in foreign markets.Answer: BAACSB: Diverse and multicultural work environments3) Bonds that are sold in a foreign country and are denominated in the country's currency in which they are sold are known asA) foreign bonds.B) Eurobonds.C) equity bonds.D) country bonds.Answer: AAACSB: Application of Knowledge4) Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which it is sold are known asA) foreign bonds.B) Eurobonds.C) equity bonds.D) country bonds.Answer: BAACSB: Application of Knowledge5) If Microsoft sells a bond in London and it is denominated in dollars, the bond is aA) Eurobond.B) foreign bond.C) British bond.D) currency bond.Answer: AAACSB: Reflective Thinking6) U.S. dollar deposits in foreign banks outside the U.S. or in foreign branches of U.S. banks are calledA) Atlantic dollars.B) Eurodollars.C) foreign dollars.D) outside dollars.Answer: BAACSB: Application of Knowledge7) If Toyota sells a $1000 bond in the United States, the bond is aA) foreign bond.B) Eurobond.C) Tokyo bond.D) currency bond.Answer: AAACSB: Application of Knowledge8) Distinguish between a foreign bond and a Eurobond.Answer: A foreign bond is sold in a foreign country and priced in that country's currency. A Eurobond is sold in a foreign country and priced in a currency that is not that country's currency. AACSB: Reflective Thinking2.5 Function of Financial Intermediaries: Indirect Finance1) The process of indirect finance using financial intermediaries is calledA) direct lending.B) financial intermediation.C) resource allocation.D) financial liquidation.Answer: BAACSB: Reflective Thinking2) In the United States, loans from ________ are far ________ important for corporate finance than are securities markets.A) government agencies; moreB) government agencies; lessC) financial intermediaries; moreD) financial intermediaries; lessAnswer: CAACSB: Reflective Thinking3) The time and money spent in carrying out financial transactions are calledA) economies of scale.B) financial intermediation.C) liquidity services.D) transaction costs.Answer: DAACSB: Application of Knowledge4) Economies of scale enable financial institutions toA) reduce transactions costs.B) avoid the asymmetric information problem.C) avoid adverse selection problems.D) reduce moral hazard.Answer: AAACSB: Reflective Thinking5) An example of economies of scale in the provision of financial services isA) investing in a diversified collection of assets.B) providing depositors with a variety of savings certificates.C) hiring more support staff so that customers don't have to wait so long for assistance.D) spreading the cost of writing a standardized contract over many borrowers.Answer: DAACSB: Reflective Thinking6) Financial intermediaries provide customers with liquidity services. Liquidity servicesA) make it easier for customers to conduct transactions.B) allow customers to have a cup of coffee while waiting in the lobby.C) are a result of the asymmetric information problem.D) are another term for asset transformation.Answer: AAACSB: Reflective Thinking7) The process where financial intermediaries create and sell low-risk assets and use the proceeds to purchase riskier assets is known asA) risk sharing.B) risk aversion.C) risk neutrality.D) risk selling.Answer: AAACSB: Analytical Thinking8) The process of asset transformation refers to the conversion ofA) safer assets into risky assets.B) safer assets into safer liabilities.C) risky assets into safer assets.D) risky assets into risky liabilities.Answer: CAACSB: Analytical Thinking9) Reducing risk through the purchase of assets whose returns do not always move together isA) diversification.B) intermediation.C) intervention.D) discounting.Answer: AAACSB: Analytical Thinking10) The concept of diversification is captured by the statementA) don't look a gift horse in the mouth.B) don't put all your eggs in one basket.C) it never rains, but it pours.D) make hay while the sun shines.Answer: BAACSB: Reflective Thinking11) Risk sharing is profitable for financial institutions due toA) low transactions costs.B) asymmetric information.C) adverse selection.D) moral hazard.Answer: AAACSB: Reflective Thinking12) Typically, borrowers have superior information relative to lenders about the potential returns and risks associated with an investment project. The difference in information is calledA) moral selection.B) risk sharing.C) asymmetric information.D) adverse hazard.Answer: CAACSB: Analytical Thinking13) If bad credit risks are the ones who most actively seek loans and, therefore, receive them from financial intermediaries, then financial intermediaries face the problem ofA) moral hazard.B) adverse selection.C) free-riding.D) costly state verification.Answer: BAACSB: Reflective Thinking14) The problem created by asymmetric information before the transaction occurs is called________, while the problem created after the transaction occurs is called ________.A) adverse selection; moral hazardB) moral hazard; adverse selectionC) costly state verification; free-ridingD) free-riding; costly state verificationAnswer: AAACSB: Application of Knowledge15) Adverse selection is a problem associated with equity and debt contracts arising fromA) the lender's relative lack of information about the borrower's potential returns and risks of his investment activities.B) the lender's inability to legally require sufficient collateral to cover a 100% loss if the borrower defaults.C) the borrower's lack of incentive to seek a loan for highly risky investments.D) the borrower's lack of good options for obtaining funds.Answer: AAACSB: Reflective Thinking16) An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion to pay for Caribbean cruises for all of its employees and their families.A) adverse selectionB) moral hazardC) risk sharingD) credit riskAnswer: BAACSB: Ethical understanding and reasoning abilities17) Banks can lower the cost of information production by applying one information resource to many different services. This process is calledA) economies of scale.B) asset transformation.C) economies of scope.D) asymmetric information.Answer: CAACSB: Application of Knowledge18) Conflicts of interest are a type of ________ problem that can happen when an institution provides multiple services.A) adverse selectionB) free-ridingC) discountingD) moral hazardAnswer: DAACSB: Ethical understanding and reasoning abilities19) Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds fromA) government agencies.B) equities markets.C) financial intermediaries.D) bond markets.Answer: CAACSB: Application of Knowledge20) The countries that have made the least use of securities markets are ________ and ________; in these two countries finance from financial intermediaries has been almost ten times greater than that from securities markets.A) Germany; JapanB) Germany; Great BritainC) Great Britain; CanadaD) Canada; JapanAnswer: AAACSB: Application of Knowledge21) Although the dominance of ________ over ________ is clear in all countries, the relative importance of bond versus stock markets differs widely.A) financial intermediaries; securities marketsB) financial intermediaries; government agenciesC) government agencies; financial intermediariesD) government agencies; securities marketsAnswer: AAACSB: Reflective Thinking22) Because there is an imbalance of information in a lending situation, we must deal with the problems of adverse selection and moral hazard. Define these terms and explain how financial intermediaries can reduce these problems.Answer: Adverse selection is the asymmetric information problem that exists before the transaction occurs. For lenders, it is the difficulty in judging a good credit risk from a bad credit risk. Moral hazard is the asymmetric information problem that exists after the transaction occurs. For lenders, it is the difficulty in making sure the borrower uses the funds appropriately. Financial intermediaries can reduce adverse selection through intensive screening and can reduce moral hazard by monitoring the borrower.AACSB: Reflective Thinking2.6 Types of Financial Intermediaries1) Financial institutions that accept deposits and make loans are called ________ institutions.A) investmentB) contractual savingsC) depositoryD) underwritingAnswer: CAACSB: Application of Knowledge2) Thrift institutions includeA) banks, mutual funds, and insurance companies.B) savings and loan associations, mutual savings banks, and credit unions.C) finance companies, mutual funds, and money market funds.D) pension funds, mutual funds, and banks.Answer: BAACSB: Analytical Thinking3) Which of the following is a depository institution?A) a life insurance companyB) a credit unionC) a pension fundD) a mutual fundAnswer: BAACSB: Analytical Thinking。
米什金 货币金融学 英文版习题答案chapter 10英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 10 Economic Analysis of Financial Regulation10.1 Asymmetric Information as a Rationale for Financial Regulation1) Depositors lack of information about the quality of bank assets can lead toA) bank panics.B) bank booms.C) sequencing.D) asset transformation.Answer: AAACSB: Analytical Thinking2) The fact that banks operate on a "sequential service constraint" means thatA) all depositors share equally in the bank's funds during a crisis.B) depositors arriving last are just as likely to receive their funds as those arriving first.C) depositors arriving first have the best chance of withdrawing their funds.D) banks randomly select the depositors who will receive all of their funds.Answer: CAACSB: Reflective Thinking3) Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on aA) last-in, first-out constraint.B) sequential service constraint.C) double-coincidence of wants constraint.D) everyone-shares-equally constraint.Answer: BAACSB: Reflective Thinking4) Because of asymmetric information, the failure of one bank can lead to runs on other banks. This is theA) too-big-to-fail effect.B) moral hazard problem.C) adverse selection problem.D) contagion effect.Answer: DAACSB: Analytical Thinking5) The contagion effect refers to the fact thatA) deposit insurance has eliminated the problem of bank failures.B) bank runs involve only sound banks.C) bank runs involve only insolvent banks.D) the failure of one bank can hasten the failure of other banks.Answer: DAACSB: Reflective Thinking6) During the boom years of the 1920s, bank failures were quiteA) uncommon, averaging less than 30 per year.B) uncommon, averaging less than 100 per year.C) common, averaging about 600 per year.D) common, averaging about 1000 per year.Answer: CAACSB: Application of Knowledge7) To prevent bank runs and the consequent bank failures, the United States established the________ in 1934 to provide deposit insurance.A) FDICB) SECC) Federal ReserveD) ATMAnswer: AAACSB: Application of Knowledge8) The primary difference between the "payoff" and the "purchase and assumption" methods of handling failed banks isA) that the FDIC guarantees all deposits when it uses the "payoff" method.B) that the FDIC guarantees all deposits when it uses the "purchase and assumption" method.C) that the FDIC is more likely to use the "payoff" method when the bank is large and it fears that depositor losses may spur business bankruptcies and other bank failures.D) that the FDIC is more likely to use the purchase and assumption method for small institutions because it will be easier to find a purchaser for them compared to large institutions.Answer: BAACSB: Reflective Thinking9) Deposit insurance has not worked well in countries withA) a weak institutional environment.B) strong supervision and regulation.C) a tradition of the rule of law.D) few opportunities for corruption.Answer: AAACSB: Reflective Thinking10) When one party to a transaction has incentives to engage in activities detrimental to the other party, there exists a problem ofA) moral hazard.B) split incentives.C) ex ante shirking.D) pre-contractual opportunism.Answer: AAACSB: Ethical understanding and reasoning abilities11) Moral hazard is an important concern of insurance arrangements because the existence of insuranceA) provides increased incentives for risk taking.B) is a hindrance to efficient risk taking.C) causes the private cost of the insured activity to increase.D) creates an adverse selection problem but no moral hazard problem.Answer: AAACSB: Reflective Thinking12) When bad drivers line up to purchase collision insurance, automobile insurers are subject to theA) moral hazard problem.B) adverse selection problem.C) assigned risk problem.D) ill queue problem.Answer: BAACSB: Reflective Thinking13) Deposit insurance is only one type of government safety net. All of the following are types of government support for troubled financial institutions EXCEPTA) forgiving tax debt.B) lending from the central bank.C) lending directly from the government's treasury department.D) nationalizing and guaranteeing that all creditors will be repaid their loans in full.Answer: AAACSB: Reflective Thinking14) Although the FDIC was created to prevent bank failures, its existence encourages banks toA) take too much risk.B) hold too much capital.C) open too many branches.D) buy too much stock.Answer: AAACSB: Reflective Thinking15) A system of deposit insuranceA) attracts risk-taking entrepreneurs into the banking industry.B) encourages bank managers to decrease risk.C) increases the incentives of depositors to monitor the riskiness of their bank's asset portfolio.D) increases the likelihood of bank runs.Answer: AAACSB: Reflective Thinking16) The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry.A) an adverse selectionB) a moral hazardC) a lemonsD) a revenueAnswer: AAACSB: Reflective Thinking17) Since depositors, like any lender, only receive fixed payments while the bank keeps any surplus profits, they face the ________ problem that banks may take on too ________ risk.A) adverse selection; littleB) adverse selection; muchC) moral hazard; littleD) moral hazard; muchAnswer: DAACSB: Reflective Thinking18) Acquiring information on a bank's activities in order to determine a bank's risk is difficult for depositors and is another argument for governmentA) regulation.B) ownership.C) recall.D) forbearance.Answer: AAACSB: Reflective Thinking19) The existence of deposit insurance can increase the likelihood that depositors will need deposit protection, as banks with deposit insuranceA) are likely to take on greater risks than they otherwise would.B) are likely to be too conservative, reducing the probability of turning a profit.C) are likely to regard deposits as an unattractive source of funds due to depositors' demands for safety.D) are placed at a competitive disadvantage in acquiring funds.Answer: AAACSB: Reflective Thinking20) In May 1991, the FDIC announced that it would sell the government's final 26% stake in Continental Illinois, ending government ownership of the bank that it had rescued in 1984. The FDIC took control of the bank, rather than liquidate it, because it believed that Continental IllinoisA) was a good investment opportunity for the government.B) could be the Chicago branch of a new governmentally-owned interstate banking system.C) was too big to fail.D) would become the center of the new midwest region central bank system.Answer: CAACSB: Reflective Thinking21) If the FDIC decides that a bank is too big to fail, it will use the ________ method, effectivelyensuring that ________ depositors will suffer losses.A) payoff; largeB) payoff; noC) purchase and assumption; largeD) purchase and assumption; noAnswer: DAACSB: Reflective Thinking22) Federal deposit insurance covers deposits up to $250,000, but as part of a doctrine called "too-big-to-fail" the FDIC sometimes ends up covering all deposits to avoid disrupting the financial system. When the FDIC does this, it uses theA) "payoff" method.B) "purchase and assumption" method.C) "inequity" method.D) "Basel" method.Answer: BAACSB: Application of Knowledge23) The result of the too-big-to-fail policy is that ________ banks will take on ________ risks, making bank failures more likely.A) small; fewerB) small; greaterC) big; fewerD) big; greaterAnswer: DAACSB: Reflective Thinking24) A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks.A) increases; moral hazardB) decreases; moral hazardC) decreases; adverse selectionD) increases; adverse selectionAnswer: AAACSB: Reflective Thinking25) The too-big-to-fail policyA) reduces moral hazard problems.B) puts large banks at a competitive disadvantage in attracting large deposits.C) treats large depositors of small banks inequitably when compared to depositors of large banks.D) allows small banks to take on more risk than large banks.Answer: CAACSB: Reflective Thinking26) The government safety net creates both an adverse selection problem and a moral hazard problem. Explain.Answer: The adverse selection problem occurs because risk-loving individuals might view the banking system as a wonderful opportunity to use other peoples' funds knowing that those funds are protected. The moral hazard problem comes about because depositors will not impose discipline on the banks since their funds are protected and the banks knowing this will be tempted to take on more risk than they would otherwise.AACSB: Reflective Thinking10.2 Types of Financial Regulation1) Regulators attempt to reduce the riskiness of banks' asset portfolios byA) limiting the amount of loans in particular categories or to individual borrowers.B) encouraging banks to hold risky assets such as common stocks.C) establishing a minimum interest rate floor that banks can earn on certain assets.D) requiring collateral for all loans.Answer: AAACSB: Reflective Thinking2) A well-capitalized financial institution has ________ to lose if it fails and thus is ________ likely to pursue risky activities.A) more; moreB) more; lessC) less; moreD) less; lessAnswer: BAACSB: Reflective Thinking3) A bank failure is less likely to occur whenA) a bank holds less U.S. government securities.B) a bank suffers large deposit outflows.C) a bank holds fewer excess reserves.D) a bank has more bank capital.Answer: DAACSB: Reflective Thinking4) The leverage ratio is the ratio of a bank'sA) assets divided by its liabilities.B) income divided by its assets.C) capital divided by its total assets.D) capital divided by its total liabilities.Answer: CAACSB: Application of Knowledge5) To be considered well capitalized, a bank's leverage ratio must exceedA) 10%.B) 8%.C) 5%.D) 3%.Answer: CAACSB: Application of Knowledge6) The FDIC must take steps to close down banks whose equity capital is less than ________ of assets.A) 4%B) 3%C) 2%D) 1%Answer: CAACSB: Application of Knowledge7) Off-balance-sheet activitiesA) generate fee income with no increase in risk.B) increase bank risk but do not increase income.C) generate fee income but increase a bank's risk.D) generate fee income and reduce risk.Answer: CAACSB: Reflective Thinking8) The Basel Accord, an international agreement, requires banks to hold capital based onA) risk-weighted assets.B) the total value of assets.C) liabilities.D) deposits.Answer: AAACSB: Application of Knowledge9) The Basel Accord requires banks to hold as capital an amount that is at least ________ of their risk-weighted assets.A) 10%B) 8%C) 5%D) 3%Answer: BAACSB: Application of Knowledge10) Under the Basel Accord, assets and off-balance sheet activities were sorted according to________ categories with each category assigned a different weight to reflect the amount of________.A) 2; adverse selectionB) 2; credit riskC) 4; adverse selectionD) 4; credit riskAnswer: DAACSB: Application of Knowledge11) The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is known asA) competition in laxity.B) depositor supervision.C) regulatory arbitrage.D) a dual banking system.Answer: CAACSB: Application of Knowledge12) Banks engage in regulatory arbitrage byA) keeping high-risk assets on their books while removing low-risk assets with the same capital requirement.B) keeping low-risk assets on their books while removing high-risk assets with the same capital requirement.C) hiding risky assets from regulators.D) buying risky assets from arbitragers.Answer: AAACSB: Reflective Thinking13) Because banks engage in regulatory arbitrage, the Basel Accord on risk-based capital requirements may result inA) reduced risk taking by banks.B) reduced supervision of banks by regulators.C) increased fraudulent behavior by banks.D) increased risk taking by banks.Answer: DAACSB: Reflective Thinking14) One of the criticisms of Basel 2 is that it is procyclical. That means thatA) banks may be required to hold more capital during times when capital is short.B) banks may become professional at a cyclical response to economic conditions.C) banks may be required to hold less capital during times when capital is short.D) banks will not be required to hold capital during an expansion.Answer: AAACSB: Reflective Thinking15) Overseeing who operates banks and how they are operated is calledA) prudential supervision.B) hazard insurance.C) regulatory interference.D) loan loss reserves.Answer: AAACSB: Application of Knowledge16) The chartering process is especially designed to deal with the ________ problem, and regular bank examinations help to reduce the ________ problem.A) adverse selection; adverse selectionB) adverse selection; moral hazardC) moral hazard; adverse selectionD) moral hazard; moral hazardAnswer: BAACSB: Analytical Thinking17) The chartering process is similar to ________ potential borrowers and the restriction of risk assets by regulators is similar to ________ in private financial markets.A) screening; restrictive covenantsB) screening; branching restrictionsC) identifying; branching restrictionsD) identifying; credit rationingAnswer: AAACSB: Reflective Thinking18) Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands forA) liabilities.B) liquidity.C) loans.D) leverage.Answer: BAACSB: Application of Knowledge19) The federal agencies that examine banks includeA) the Federal Reserve System.B) the Internal Revenue Service.C) the SEC.D) the U.S. Treasury.Answer: AAACSB: Application of Knowledge。
财金英语教程参考答案

财金英语教程参考答案Chapter 1: Introduction to Finance1. What is finance?- Finance is the management of money and includesactivities such as investing, borrowing, lending, budgeting, saving, and forecasting.2. What are the three main functions of finance?- The three main functions of finance are planning, acquiring, and managing financial resources.3. What is the time value of money?- The time value of money is the concept that a sum of money is worth more now than the same sum in the future dueto its potential earning capacity.4. How does inflation affect the value of money?- Inflation erodes the purchasing power of money over time, meaning that the same amount of money will buy fewer goodsand services in the future.5. What is the difference between a bond and a stock?- A bond is a debt instrument where an investor lends money to an entity in exchange for interest payments, while a stock represents ownership in a company and offers thepotential for capital gains and dividends.Chapter 2: Financial Statements1. What are the four main financial statements?- The four main financial statements are the balance sheet, income statement, cash flow statement, and statement of changes in equity.2. What is the purpose of a balance sheet?- The balance sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and equity.3. How is net income calculated?- Net income is calculated by subtracting all expensesfrom the total revenue of a company during a specific period.4. What does the cash flow statement show?- The cash flow statement shows the inflow and outflow of cash within a business over a period of time, categorizedinto operating, investing, and financing activities.5. What is the statement of changes in equity?- The statement of changes in equity shows the changes in the equity accounts of a company over a period of time, including retained earnings, capital contributions, and other comprehensive income.Chapter 3: Financial Analysis1. What are the main types of financial analysis?- The main types of financial analysis are ratio analysis,horizontal analysis, vertical analysis, and trend analysis.2. What is the purpose of ratio analysis?- Ratio analysis is used to evaluate a company's financial health by comparing various financial ratios such asliquidity, profitability, and leverage ratios.3. What is horizontal analysis?- Horizontal analysis involves comparing financial statement items over multiple periods to identify trends and changes in performance.4. What is vertical analysis?- Vertical analysis, also known as common-size analysis,is a method of financial statement analysis where each itemis expressed as a percentage of a base figure, typicallytotal assets or total revenue.5. What is trend analysis?- Trend analysis involves examining the historical data of financial metrics over time to predict future trends and performance.Chapter 4: Risk Management1. What is risk management?- Risk management is the process of identifying, assessing, and prioritizing potential risks to an investment or project, and taking steps to mitigate or avoid these risks.2. What are the types of risks in finance?- The types of risks in finance include market risk,credit risk, liquidity risk, operational risk, and legal risk.3. What is diversification?- Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or geographic regions to reduce overall risk.4. What is hedging?- Hedging is a risk management technique used to reducethe risk of price fluctuations in an asset by taking an offsetting position in a related security.5. What is the role of insurance in risk management?- Insurance is a risk management tool that providesfinancial protection against potential losses or damages by transferring the risk to an insurance company in exchange for a premium.Chapter 5: Investment Strategies1. What are the different types of investment strategies?- Types of investment strategies include passive investing, active investing, value investing, growth investing, and income investing.2. What is the difference between passive and active investing?- Passive investing involves a "set it and forget it" approach, typically using index funds, while active investingrequires regular buying and selling of individual securities based on market research and analysis.3. What is value investing?- Value investing is an investment strategy that involves buying stocks that are considered undervalued by the market, with the expectation that their true value will eventually be recognized.4. What is growth investing?- Growth investing focuses on companies that are expected to grow at an above-average rate compared to the market, often investing in companies with strong competitive advantages and high growth potential.5. What is income investing?- Income investing is an investment strategy aimed at generating a steady stream of income from investments, typically through dividends or interest payments.Chapter 6: International Finance1. What is international。
米什金货币金融学英文

becoming more complicated. Regulators had neither the expertise nor the resources to monitor these activities appropriately
2. Restrictions on Asset Holdings A. Reduces moral hazard of too much risk taking
© 2005 Pearson Education Canada Inc.
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How Asymmetric Information Explains Banking Regulation
3. Bank Capital Requirements A. Reduces moral hazard: banks have more to lose when have higher capital B. Higher capital means more collateral for FDIC
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How Asymmetric Information Explains Banking Regulation
3. Bank Capital Requiபைடு நூலகம்ements A. Reduces moral hazard: banks have more to lose when have higher capital B. Higher capital means more collateral for CDIC
金融学原理(英文)第二单元课后答案

⾦融学原理(英⽂)第⼆单元课后答案CHAPTER 2ANSWERS2-1 a. 0 Bonds and term loans are equivalent debt instruments and should have about the same interest rate.b. + Debentures are riskier than mortgage bonds and, hence, wouldrequire a higher interest rate.c. - This would allow bondholders to reap the benefits of a stock priceincrease, so they would accept a lower interest rate.d. (1) + Because the debentures will be subordinated to its bank debt,the debentures will have a higher interest rate.(2) - Because the debentures will be subordinated to the bank debt,the bank debt will have a lower interest rate.(3) 0 The net effect of (1) and (2) is indeterminant.e. + Because income bonds are riskier, they would carry a higher rateof interest.f. (1) - The more of the property that is mortgaged the weaker the claimof the debenture holders. Thus, going from $75 million to $50million of first mortgage debt will strengthen the debenturesand lower their interest rate.(2) - The property will have a smaller mortgage; hence, eachindividual first mortgage bond will be better secured, lessrisky, and have a lower interest rate.(3) 0 Debentures will cost less, as will mortgage bonds, but theaverage cost probably will be about the same--at least, itis not obvious that the cost will be higher or lower. Thisoccurs because the rate on the mortgage bonds is lower thanthat on debentures, but the weights are shifting toward theriskier, higher rate debentures.g. + A call provision increases the risk to the bondholders, so ahigher rate would be required.h. - The sinking fund calls for repayment over the life of the bond.This lowers somewhat the risk of the issue, hence leads to lowerrates.i. + This would raise the interest rate because a lower rating impliesgreater risk.2-2 Safety Rank⽂档收集⾃⽹络,仅⽤于个⼈学习a. Income bond 8b. Subordinated debenture--noncallable 6c. First mortgage bond--no sinking fund 3d. Common stock 9e. U.S. Treasury bond 1f. First mortgage bond--with sinking fund 2g. Subordinated debentures--callable 7h. Amortized term loan 4I. Term loan 52-3 From the corporation's viewpoint, one important factor in establishinga sinking fund is that its own bonds generally have a higher yield thando government bonds; hence, the company saves more interest by retiring its own bonds than it could earn by buying government bonds. This factor causes firms to favor the second procedure. Investors also would prefer the annual retirement procedure if they thought that interest rates were more likely to rise than to fall, but they would prefer the government bond purchases program if they thought rates were likely to fall. Inaddition, bondholders recognize that, under the government bond purchase scheme, each bondholder would be entitled to a given amount of cash from the liquidation of the sinking fund if the firm should go into default, whereas under the annual retirement plan, some of the holders would receivea cash benefit while others would benefit only indirectly from the factthat there would be fewer bonds outstanding.On balance, investors seem to have little reason for choosing one method over the other, while the annual retirement method is clearly more beneficial to the firm. The consequence has been a pronounced trend toward annual retirement and away from the accumulation scheme.2-4 ($ million)Common stock (42 million shares outstandingAt $1 par) = $40 + $2 $ 42 Additional paid-in capital = $120 + $48 168Retained earnings 170Total common stockholders' equity $380⽂档收集⾃⽹络,Total value of the issue = 2 million shares ? $25 = $50 million Added to Common stock account = 2 million shares ? $1 par = $2 millionAdded to Additional paid-in capital account = $50 million - $2 million= $48 million2-5 a. The average investor in a listed firm is not really interested in maintaining his or her proportionate share of ownership and control.An investor could increase ownership by simply buying more stock onthe open market. Consequently, most investors are not concerned withwhether new shares are sold directly (at about market prices) orthrough rights offerings. However, if a rights offering is being usedto effect a stock split, or if it is being used to reduce theunderwriting cost of an issue (by substantial underpricing), thepreemptive right might well be beneficial to the firm and itsstockholders.b. Clearly, the preemptive right is important to the stockholders ofclosely-held firms whose owners are interested in maintaining theirrelative control positions.2-6 Preferred stock can be classified only when the one doing the classifica-tion is considered. From the standpoint of the firm, preferred stock is like equity in that it cannot force the firm into bankruptcy, but it is like debt in that it causes fluctuations in earnings available to the common stockholders. Consequently, if the firm is concerned primarily with survival, it probably would classify preferred stock as equity. However, if there is essentially no danger of bankruptcy, management would view preferred stock as simply another fixed charge security and treat it internally as debt. Equity investors would have a similar viewpoint, and in general they should treat preferred stock in much the same manner as debt. For creditors, the position is reversed. They take preference over preferred stockholders, and the preferred issues act as a cushion. Conse-quently, a bond analyst probably would want to treat preferred as equity.Obviously, in all these applications, there would have to be some qualifi-cations; in a strict sense, preferred stock is neither debt nor equity, but a hybrid.2-7 When the price of its stock is temporarily depressed and a firm wishes to raise funds via an equity issue, the company’s investment banker probably will recommend convertible debt be issued. The firm can use convertible bonds if it is believed that the price of the stock will rise sufficiently in the future to make conversion attractive. Then, if conversion takes place when the stock price is higher, the firm will have essentially issued its stock at a price higher than existed when the convertible bond was issued.2-8 The convertible bond has an expected return that consists of an interest yield (9 percent) plus an expected capital gain. We know the expectedcapital gain must be at least 3 percent, because the total expected returnon the convertible must be at least equal to that on the nonconvertiblebond, 12 percent. In all likelihood, the expected return on the conver-tible would be higher than that on the straight bond, because a capitalgains yield is riskier than an interest yield. The convertible would,therefore, probably be regarded as being riskier than the straight bond.However, the convertible, with its interest yield, probably would beregarded as being less risky than common stock.────────────────────────────────────────────────────────SOLUTIONS2-1 a. Most firms have a continuing need for long-term debt to finance operations (at least as long as they are still in business). It would make sense fora firm to issue bonds like the Canadian bonds. If you think about it, themost significant difference between a 30—year bond and a perpetual bondthat is callable is that there is a refinancing requirement for the regularbond at the end of 30 years. This refinancing requirement probably willchange the cost of the bond, because refinancing takes place at existingThe default risk will be negligible for each bond. The interest rate risk, however, will be greatest for the bond with the longest term to maturity.As a result, the perpetual bonds’ interest rate risk will be greaterthan for the 5-year bond (which will have the lowest interest rate risk)and the 50-year bond. Because the Canadian bond will be called onlyif interest rates decline, it is considered the riskiest, and thus willhave the highest expected interest rate. The order of the expectedinterest rate from lowest to highest would be:5-year bond50-year bondregular perpetual bondCanadian perpetual bondProbably not. If rates had dropped so that bonds with a coupon rate equal to 3 percent could besold, the Canadian government probably would have issued the 3-percent bonds to replace themore expensive bonds.If the information bondholders used to reach their conclusion that the bonds would be called wasunfounded, then there should be no reason to expect the Canadian government to foot the bill forinvestors’mistakes. At the same time, some might argue that the Canadian government has amoral obligation to ensure that any false information that it knows about is not passed on toinvestors. If the Canadian government originally sold the bonds to na?ve investors and hadsomehow led them to think that the bonds would be called, the fairness might indicate thatretirement is appropriate. But, if you think about it, the original investors probably sold the bondsmany years ago, so there no longer would be such an obligation to them. Educated investors shouldknow that the government would not call the bonds when the interest rates were so high--in effect,the government would be wasting constituents’ money.2-2 a. Number of zeros = Amount needed/Price per bond= $4,500,000/$567.447,931 bonds.b. In five years, Filkins will have to repay $4.5 million when the bondmatures. But, because the debt is a zero-coupon bond, there will nointerest payments in the meantime. Thus, the annual debt service costsare $0.2-3 a. Balance sheets:Meyer Balance Sheet ($ thousands):Debt $400Total liabilitiesTotal assets $600 and equity $600Debt $200Equity 400 Total liabilities Total assets $600 and equity $600b. purchase the new machine. Therefore, because the stock issue increased the number of existing shares by 20 percent, the number of shares Haugen had outstanding before the issue was Thus, the number of shares that are outstanding after the stock issue equal 24,000.c.Income Statement for Meyer Manufacturing ($ thousands):ΔEBIT $100.0 ΔInterest = $200 ? 0.08 ( 16.0) ΔEarnings before taxes 84.0 ΔTaxes (40%) ( 33.6) ΔNet income (earnings available to pay to common stockholders) $ 50.4 ΔEBIT $100.0ΔInterest = $0 ? 0.08 ( 0.0) ΔEarnings before taxes 100.0 ΔTaxes (40%) ( 40.0) ΔNet income (earnings available to pay to common stockholders $ 60.0 d.Meyer issued bonds, not stock, so it of common stock outstanding. Therefore, Meyer ’s earnings per share, EPS, is Haugen issued stock and its shares outstanding increased to 24,000. Therefore, Haugen ’s earnings per share, EPS, is If we use the EPS to evaluate both companies, we would conclude Meyer ’s decision to issue debt was better than Haugen ’s decision to issue stock. We will discuss this concept further in later chapters in the book.2-4 a.The conversion price simply is the face (par) value of the bond divided by the conversion ratio--the conversion price for this issue is $1,000/25 = $40. Therefore, it would be beneficial for investors to convert their bonds into common stock when the price of the stock is greater than $40 per share.b.The conversion feature would add some flexibility to the bonds as an investment. Investors might find it attractive to buy the bonds because they can later decide whether they prefer to remain bondholders or to convert and become stockholders.2-5 a.Cox Computer Company Balance Sheet: Alternative 1:Short-term debt $ 25,000Long-term debt 25,000Common stock, par $1 75,000*Paid-in capital 225,000* Retained earnings 25,000 Total liabilities Total assets $375,000 and equity $375,000⽂档收集⾃⽹*At $10 per share, $250,000/$10 = 25,000 shares would have to be soldto raise the $250,000. Therefore, at $1 par value, the Common stockaccount will increase by $1 ? 25,000 = $25,000, and the remaining$225,000 is Paid-in capital. Because $150,000 is used to pay some ofthe bank debt, assets increase by only $100,000. Total sharesoutstanding after the issue: 75,000 = 50,000 + 25,000.Alternative 2:Long-term debt 25,000Common stock, par $1 70,000*Paid-in capital 230,000*Retained earnings 25,000Total liabilitiesTotal assets $ 375,000 and equity $ 375,000⽂档收*To raise $250,000, the firm would have to sell $250,000/$1,000 = 250 bonds. Each bond is convertible into 80 shares of common stock; thus,conversion will increase the number of shares outstanding by 20,000.Therefore, at $1 par value, the Common stock account will increaseby $1 20,000 = $20,000, and the remaining $230,000 is Paid-in capital.Total shares outstanding after the conversion: 70,000 = 50,000 +20,000.Alternative 3:Short-term debt $ 25,000Long-term debt 275,000Common stock, par $1 50,000Retained earnings 25,000Total liabilitiesTotal assets $ 375,000 and equity $ 375,000⽂档收b. Original Plan 1 Plan 2 Plan 3________ _______ ______________Number of CharlesCox's shares 40,000 40,000 40,00040,000Total shares 50,000 75,000 70,00050,000Percent ownership 80% 53% 57% 80%c. Original Plan 1 Plan 2 Plan 3________ ________ ________ __________Total assets $275,000 $375,000 $375,000 $375,000EBIT $ 55,000 $ 75,000 $ 75,000 $ 75,000Interest* ( 17,500) ( 2,500) ( 2,500) ( 32,500)EBT $ 37,500 $ 72,500 $ 72,500 $ 42,500Taxes (40%) ( 15,000) ( 29,000) ( 29,000) ( 17,000)Net income $ 22,500 $ 43,500 $ 43,500 $ 25,500⽂档Number of shares 50,000 75,000 70,000 50,000Earnings per share $0.45 $0.58 $0.62 $0.51⽂档个⼈收集整理勿做商业⽤途*Both the bank loans and the long-term debt require interestpayments; the amount of short-term debt that is not a bank loandoes not require interest payments. Before new financing isobtained, the amount of the bank loan is $150,000 and the amountof long-term debt is $25,000--at 10 percent, the total interestis ($150,000 + $25,000) ? 0.10 = $17,500. The financing planseliminate the bank loans, so the interest payment for each planis: (1) Alternative 1 has $25,000 long-term debt with interestpayments equal to $2,500; (2) Alternative 2 has $25,000 long-termdebt with interest payments equal to $2,500; and, (3) Alternative3 has $275,000 long-term debt with interest payments equal to($25,000 ? 0.10) + ($250,000 ? 0.12) = $$32,500.Each alternative permits Charles Cox to maintain control of thefirm (more than 50 percent ownership). In addition, eachalternative results in an increase in EPS. But, becauseAlternative 2 results in the greatest increase in EPS, it wouldbe preferred.2-6 a. Book value per share = ($364,000 + $336,000)/20,000 = $35.00 Total amount of issue = 10,000 ?$32.55 = $325,500 Book value after issue = ($364,000 + $336,000) + $325,500= $1,025,500Book value per share = $1,025,500/30,000 = $34.182-7 a. If P0 = $18, the option is exercised, and the stock is sold immediately, the gain would be ($18 - $15) ?100 = $300. Therefore,it would be beneficial to exercise the option.b. If P0 = $13, the option is exercised, and the stock is soldimmediately, the loss would be ($13 - $15) ?100 = -$200. Therefore,it would not be beneficial to exercise the option.c. The answers in part (a) and part (b) would be reversed if theoption was a put with the same exercise price:If P0 = $18, the put option is exercised, and the stock is soldimmediately, the loss would be ($15 - $18) ? 100 = -$300. Theoption holder would have to buy the stock at $18 per share toexercise the put and sell the stock at $15 to the option writer.Therefore, it would not be beneficial to exercise the option.If P0 = $13, the put option is exercised, and the stock is soldimmediately, the gain would be ($15 - $13) ?100 = $200. In thiscase, the option holder would be able to buy the stock at $13per share and then sell it to the option writer at $15 byexercising the option. Therefore, it would be beneficial toexercise the option.2-8 a. Today, the amount Fibertech has to pay today is known with certainty because the current exchange rate is known. In otherwords, if Fibertech decides to pay the bill today, it needs$4,215,000 to purchase 7,500,000 deutschemarks. However, ifFibertech waits to pay the bill when it is due in 90 days, theexchange rate might be different and thus the company mighthave to pay more than $4,215,000 to purchase the 7,500,000deutschemarks (it also might be able to pay less). The primaryadvantage to waiting to pay the bill is that Fibertech can usethe funds for other purposes. In addition, it can avoid thehigh cost of borrowing funds to pay the bill today.b. Cost to Fibertech = 7,500,000 ?$0.567 = $4,252,500 in 90 dayswhen the bill is due.c. At $0.60 per mark, the cost to purchase the neededdeutschemarks would be:7,500,000 ? $0.60 = $4,500,000At $0.54 per mark, the cost to purchase the neededdeutschemarks would be:7,500,000 ? $0.54 = $4,050,000d. The primary benefit Fibertech would receive by entering afutures contract is that it would be able to “lock in” todaythe price of the deutschemarks needed in 90 days. For example,if the futures contract in part (b) was entered, then Fibertechknow it needs $4,252,500 in 90 days to pay the debt it owesthe German manufacturer, regardless of what the actualexchange rate is at that time--the futures contract has “lockedin” the price today.2-9 The solution is given in the Instructor’s Manual, Solutions to Integrative Problems.版权申明本⽂部分内容,包括⽂字、图⽚、以及设计等在⽹上搜集整理。
米什金 货币金融学 英文版习题答案chapter 20英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 20 Quantity Theory, Inflation and the Demand for Money20.1 Quantity Theory of Money1) The quantity theory of money is a theory of howA) the money supply is determined.B) interest rates are determined.C) the nominal value of aggregate income is determined.D) the real value of aggregate income is determined.Answer: CAACSB: Reflective Thinking2) Because the quantity theory of money tells us how much money is held for a given amount of aggregate income, it is also a theory ofA) interest-rate determination.B) the demand for money.C) exchange-rate determination.D) the demand for assets.Answer: BAACSB: Reflective Thinking3) The average number of times that a dollar is spent in buying the total amount of final goods and services produced during a given time period is known asA) gross national product.B) the spending multiplier.C) the money multiplier.D) velocity.Answer: DAACSB: Reflective Thinking4) The velocity of money isA) the average number of times that a dollar is spent in buying the total amount of final goods and services.B) the ratio of the money stock to high-powered money.C) the ratio of the money stock to interest rates.D) the average number of times a dollar is spent in buying financial assets.Answer: AAACSB: Reflective Thinking5) If the money supply is $500 and nominal income is $3,000, the velocity of money isA) 1/60.B) 1/6.C) 6.D) 60.Answer: CAACSB: Analytical Thinking6) If the money supply is $600 and nominal income is $3,000, the velocity of money isA) 1/50.B) 1/5.C) 5.D) 50.Answer: CAACSB: Analytical Thinking7) If the money supply is $500 and nominal income is $4,000, the velocity of money isA) 1/20.B) 1/8.C) 8.D) 20.Answer: CAACSB: Analytical Thinking8) If the money supply is $600 and nominal income is $3,600, the velocity of money isA) 1/60.B) 1/6.C) 6.D) 60.Answer: CAACSB: Analytical Thinking9) If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity isA) 0.2.B) 5.C) 10.D) 20.Answer: BAACSB: Analytical Thinking10) If nominal GDP is $8 trillion, and the money supply is $2 trillion, velocity isA) 0.25.B) 4.C) 8.D) 16.Answer: BAACSB: Analytical Thinking11) If nominal GDP is $10 trillion, and velocity is 10, the money supply isA) $1 trillion.B) $5 trillion.C) $10 trillion.D) $100 trillion.Answer: AAACSB: Analytical Thinking12) If the money supply is $2 trillion and velocity is 5, then nominal GDP isA) $1 trillion.B) $2 trillion.C) $5 trillion.D) $10 trillion.Answer: DAACSB: Analytical Thinking13) If the money supply is $20 trillion and velocity is 2, then nominal GDP isA) $2 trillion.B) $10 trillion.C) $20 trillion.D) $40 trillion.Answer: DAACSB: Analytical Thinking14) Velocity is defined asA) P + M + Y.B) (P × M)/Y.C) (Y × M)/P.D) (P × Y)/M.Answer: DAACSB: Analytical Thinking15) The velocity of money is defined asA) real GDP divided by the money supply.B) nominal GDP divided by the money supply.C) real GDP times the money supply.D) nominal GDP times the money supply.Answer: BAACSB: Reflective Thinking16) The equation of exchange states that the quantity of money multiplied by the number of times this money is spent in a given year must equalA) nominal income.B) real income.C) real gross national product.D) velocity.Answer: AAACSB: Reflective Thinking17) In the equation of exchange, the concept that provides the link between M and PY is calledA) the velocity of money.B) aggregate demand.C) aggregate supply.D) the money multiplier.Answer: AAACSB: Reflective Thinking18) The equation of exchange isA) M × P = V × Y.B) M + V = P + Y.C) M + Y = V + P.D) M × V = P × Y.Answer: DAACSB: Reflective Thinking19) Irving Fisher took the view that the institutional features of the economy which affect velocity change ________ over time so that velocity will be fairly ________ in the short run.A) rapidly; erraticB) rapidly; stableC) slowly; stableD) slowly; erraticAnswer: CAACSB: Reflective Thinking20) In Irving Fisher's quantity theory of money, velocity was determined byA) interest rates.B) real GDP.C) the institutions in an economy that affect individuals' transactions.D) the price level.Answer: CAACSB: Reflective Thinking21) The classical economists' conclusion that nominal income is determined by movements in the money supply rested on their belief that ________ could be treated as ________ in the short run.A) velocity; constantB) velocity; variableC) money; constantD) money; variableAnswer: AAACSB: Reflective Thinking22) The view that velocity is constant in the short run transforms the equation of exchange into the quantity theory of money. According to the quantity theory of money, when the money supply doublesA) velocity falls by 50 percent.B) velocity doubles.C) nominal incomes falls by 50 percent.D) nominal income doubles.Answer: DAACSB: Analytical Thinking23) Cutting the money supply by one-third is predicted by the quantity theory of money to causeA) a sharp decline in real output of one-third in the short run, and a fall in the price level by one-third in the long run.B) a decline in real output by one-third.C) a decline in output by one-sixth, and a decline in the price level of one-sixth.D) a decline in the price level by one-third.Answer: DAACSB: Analytical Thinking24) The classical economists believed that if the quantity of money doubledA) output would double.B) prices would fall.C) prices would double.D) prices would remain constant.Answer: CAACSB: Analytical Thinking25) The classical economists' contention that prices double when the money supply doubles is predicated on the belief that in the short run velocity is ________ and real GDP is ________.A) constant; constantB) constant; variableC) variable; variableD) variable; constantAnswer: AAACSB: Reflective Thinking26) For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Changes in the price level resultA) from proportional changes in the quantity of money.B) primarily from changes in the quantity of money.C) only partially from changes in the quantity of money.D) from changes in factors other than the quantity of money.Answer: AAACSB: Reflective Thinking。
金融学第二版课后答案英文版中国人民大学Bodie2-IM-Ch01

金融学第二版课后答案英文版中国人民大学Bodie2_IM_Ch01CHAPTER 1 – Financial EconomicsEnd-of-Chapter ProblemsDefining Finance1. What are your main goals in life? How does finance play a part in achieving those goals? What are the major tradeoffs you face?SAMPLE ANSWER:Finish schoolGet good paying job which I likeGet married and have childrenOwn my own homeProvide for familyPay for children’s educationRetireHow Finance Plays a Role:SAMPLE ANSWER:Finance helps me pay for undergraduate and graduate education and helps me decide whether spending the money on graduate education will be a good investment decision or not.Higher education should enhance my earning power and ability to obtain a job I like.Once I am married and have children I will have additional financial responsibilities (dependents) and I will have to learn how to allocate resources among individuals in the household and learn how to set aside enough money to pay for emergencies, education, vacations etc. Finance also helps me understand how to manage risks such as for disability, life and health.Finance helps me determine whether the home I want to buyis a good value or not. The study of finance also helps me determine the cheapest source of financing for the purchase of that home.Finance helps me determine how much money I will have to save in order to pay for my children’s education as well as my own retirement.Major Tradeoffs:SAMPLE ANSWERSpend money now by going to college (and possibly graduate school) but presumably make more money once I graduate due to my higher education.Consume now and have less money saved for future expenditures such as for a house and/or car or save more money now but consume less than some of my friendsFinancial Decisions of Households2. What is your net worth? What have you included among your assets and your liabilities? Would you list the value of your potential lifetime earning power as an asset or liability? How does it compare in value to other assets you have listed?SAMPLE ANSWER:$ ____________ (very possibly negative at this point)Assets:Checking account balanceSavings account balanceFurniture/Jewelry (watch)Car (possibly)Liabilities:Student loansCredit card balanceIf renting, remainder of rental agreement (unless sublettingis a possibility)Car payments (possibly)Students typically don’t think about the high value of their potential lifetime earning power when calculating their net worth but for young people it is often their most valuable asset.3. How are the financial decisions faced by a single person living alone different from those faced by the head of a household with responsibility for several children of school age? Are the tradeoffs they have to make different, or will they evaluate the tradeoffs differently?A single person needs only to support himself and therefore can make every financial decision on his own. If he does not want health insurance (and is willing to bear the financial risks associated with that decision) then no one will be affected by that decision other than that single person. In addition, this person needs to make no decisions about allocating income among dependents. A single person is very mobile and can choose to live almost anywhere. The tradeoffs this individual makes generally concern issues of consuming (or spending) today versus saving for consumption tomorrow. Since this person is supporting only himself, the need to save now is less important than for the head of household discussed next.T he head of household with several children must share resources (income) among dependents. This individual must be prepared to deal with risk management issues such as how to be prepared for potential financial emergencies (such as a serious health problem experienced by a member of the family or home owners insurance in case of a fire or other mishap). Because there are more people in this household than with a single person, there are greater risks that someone will get sick or injured. Andbecause there are dependents, the wage earner(s) should think carefully about life and disability insurance. In addition, the family is not as mobile as the single individual. Because of the school age children, the family might want to live near “good schools” thinking that a stronger education will eventually help those children’s future well being and financial situation. Thus, the tradeoffs for the head of household are more complex: more money is needed to consume today (he or she needs to support more dependents), but a lot more money is also needed to save for future expenses such as education and housing and more money is needed for risk management such as life and disability insurance.4. Family A and family B both consist of a father, mother and two children of school age. In family A both spouses have jobs outside the home and earn a combined income of $100,000 per year. In family B, only one spouse works outside the home and earns $100,000 per year. How do the financial circumstances and decisions faced by the two families differ?With two wage earners, there is less risk of a total loss of family income due to unemployment or disability than there is in a single wage earning household. The single wage earning family will probably want more disability and life insurance than the two wage earning family. On the flip side, however, the two wage earning family may need to spend extra money on child care expenses if they need to pay someone to watch the children after school.5. Suppose we define financial independence as the ability to engage in the four basic household financial decisions without resort to the use of relative’s resources when making financing decisions. At what age should children be expected to becomefinancially independent?Students will have differing responses to this question depending upon their specific experiences and opinions. Most will probably say independence should come after finishing their education, and they have a significant flow of income.6. You are thinking of buying a car. Analyze the decision by addressing the following issues:a.Are there are other ways to satisfy your transportation requirements besides buying a car? Make a list ofall the alternatives and write down the pros and cons.Transportation Mode Pros ConsWalking ?Takes you directly where you wantto goNo out of pocket costsConvenient ?Takes a long time ?Destination may be too far Bicycle ?Takes you directly to where youwant to goNo out of pocket marginal costsConvenient ?Requires physical strength and endurance ?Destination may be too farBus ?InexpensiveReaches more distant destinations ?May not take you directly where you want to go ?Inconvenient schedules to go ?Many stops, not efficientSubway ?InexpensiveFast ?May not take you directly where you want to goLocal destinations only on limited networkTrain ?Reaches distant destinations ?Moderately expensiveMay not take you directly whereyou want to goAirplane ?Reaches distant destinationsFast ?Most expensiveWill not take you directly where you want to gob. What are the different ways you can finance the purchase of a car?F inance through a bank loan or lease, finance through a car dealer with a loan or a lease or finance the car out of your own savings.c. Obtain information from at least three different providers of automobile financing on the terms they offer.d. What criteria should you use in making your decision?Your decision will be to select the financing alternative that has the lowest cost to you.When analyzing the information, you should consider the following:Do you have the cash saved to make an outright purchase? What interest rate would you be giving up to make that purchase? Do you pay a different price for the car if you pay cash rather than finance?For differing loan plans, what is the down payment today? What are the monthly payments? For how long? What is the relevant interest rate you will be paying? Does the whole loan get paid through monthly payments or is there a balloon payment at the end? Are taxes and/or insurance payments included in the monthly payments? ?For differing lease plans, what is the down payment today? What are the monthly payments? For how long? Do you own the car at the end of the lease? If not, what does it cost to buy the car? Do you have to buy the car at the end of the lease or is it an option? Is there a charge if you decide not to buy the car? What relevant interest rate will you be paying? Are taxesand/or insurance payments included in the monthly payments? Are there mileage restrictions?7. Match each of the following examples with one of the four categories of basic types of household financial decisions.At the Safeway paying with your debit card rather than taking the time to write a checkDeciding to take the proceeds from your winning lottery ticket and use it to pay for an extended vacation on the Italian RivieraFollowing Hillary’s advice and selling your Microsoft shares to invest in pork belly futuresHelping your 15-year old son learn to drive by letting putting him behind the wheel on the back road into townTaking up the offer from the pool supply company to pay off your new hot tub with a 15-month loan with zero payments for the first three monthsThe first is the most difficult since in practice it is simply a cash transaction involving no financing. As such the purchase is a consumption decision only and the payment choice is not a financing decision. The second is also a consumption/saving decision. The third is an exchange of one financial asset for another and therefore an investment decision. The fourth is a risk-management decision since you have subjected yourself to increased risk that is not covered by insurance. The final example is a financing decision involving a loan to finance a purchase.Forms of Business Organization8. You are thinking of starting your own business, but have no money.a.Think of a business that you could start without having to borrow any money.A ny business that involves a student’s own personal service would be cheap to start up. For instance he or she could start a business running errands for others, walking their dogs, shopping etc. Along those same lines they could start some kind of consulting business. Both of these businesses could be run out of their dorm room or their own home and could be started with very little capital. If they wanted to hire additional workers, they would have to be paid on a commission basis to limit upfront expenses.b. Now think of a business that you would want to start if you could borrow any amount of money at the going market interest rate.Certainly there are many interesting businesses that could be started if one could finance 100% of the business with borrowed capital and no equity. Since you will be able to borrow 100% of the financing, you will be willing to take a lot greater risk than if you were investing your own money.c. What are the risks you would face in this business?[Answer is, of course, dependent on answer to question “b.”]d. Where can you get financing for your new business?Depending upon the size of the financing needed, students should be looking for both debt and equity financing. The sources of this financing ranges from individuals and credit cards (for very small sums) to banks, venture capitalists, public debt and equity markets, insurance companies and pension funds9. Choose an organization that is not a firm, such as a club or church group and list the most important financial decisions it has to make. What are the key tradeoffs the organization faces? What role do preferences play in choosing among alternatives?Interview the financial manager of the organization and check to see if he or she agrees with you.SAMPLE ANSWER:Local Church group. Most important financial decisions:Whether or not to repair damage done to church and grounds during last big hurricane (specifically repairing the leaking roof)What project to put off in order to pay for repair damageHow to pay for renovations to downstairs Sunday school roomsHow to increase member attendance and contributionsHow to organize and solicit volunteers for the annual Church Sale (largest fund raiser of the year)Key Tradeoffs and Preferences:C hurch group funds are severely limited, so the organization needs to prioritize expenses based upon cost and need. Not all projects that are needed will be undertaken due to the expense involved. An equally large amount of timewill be spent trying to raise financing since funds inflow is variable. Since not all projects can be financed, preferences of different important individuals (such as the pastor) take on great significance in the decision-making process.Market Discipline: Takeovers10. Challenge Question: While there are clear advantages to the separation of management from ownership of business enterprises, there is also a fundamental disadvantage in that it may be costly to align the goals of management with those of the owners. Suggest at least two methods, other than the takeover market, by which the conflict can be reduced, albeit at some cost.One way is to provide incentives for the managers so that they increase their pay when owners interests are improved. An example would be compensating managers with stock options, the value of which increase with the market value of shareholder’s int erests. A second method is to more closely monitor the behavior of the managers. Outside management consultants and auditors serve this role in part particularly to the extent that they report their findings to representatives from ownership groups. Both of these solutions assume the management cannot effectively deceive markets or consultant/auditors through misleading information or actions to inflate the market value of the ownership shares or there performance records.11. Challenge Question:Consider a poorly run local coffee shop with its prime location featuring a steady stream of potential clients passing by on their way to and from campus. How does the longtime disgruntled, sloppy and inefficient owner-manager of Cup-a-Joe survive and avoid disciplining from the takeover market? This is not a question about a misalignment of the goals of the owner(s) and manager(s) of a firm since we have explicitly said the firm is owner-managed. If in fact the coffee shop is mismanaged the potential exists for an outsider to purchase a controlling interest in the operation and put more efficient management into place if the purchase price does not exceed the value of profits to be generated by the efficiently managed firm. If the present owner chooses not to sell he must value the firm for more than the value of the profits generated by an efficiently managed firm. Therefore his position in the firm must generate for him non-pecuniary benefits, or benefits unrelated to the firm’s profitability and he is therefore not avalue maximizer. Perhaps he enjoys making fun of his clients or takes pride in his eclectic tastes in interior decorating. In any case the takeover market does discipline him in the sense that he will be forced to pay for his non-pecuniary benefits in the sense that he trades off profits.The same could be said of an owner-manager who lacks the required specialized skills to properly run the firm but never the less continues to operate the company inefficiently because he ‘likes’ the work!The Role of the Finance Specialist in a Corporation12. Which of the following tasks undertaken within a corporate office are likely to fall under the supervision of the treasurer? The controller?Arranging to extend a line of credit from a bankArranging with an investment bank for a foreign exchange transactionProducing a detailed analysis of the cost structure of the company’s alternative product linesTaking cash payments for company sales and purchasing U.S. Treasury BillsFiling quarterly statements with the Securities and Exchange CommissionThe first two and the fourth items are responsibilities of the treasurer while the third and fifth items fall under the workload of the controller’s office.Objectivesy Define finance.y Explain why finance is worth studying.y Introduce two of the main players in the world of finance—households and firms—and the kinds of financial decisions theymake. The other main players, financial intermediaries and government, are introduced in chapter 2.Contents1.1Defining Finance1.2Why Study Finance?1.3Financial Decisions of Households1.4Financial Decisions of Firms1.5Forms of Business Organization1.6Separation of Ownership and Management1.7The Goal of Management1.8Market Discipline: Takeovers1.9The Role of the Finance Specialist in a CorporationSummaryFinance is the study of how to allocate scarce resources over time. The two features that distinguish finance are that the costs and benefits of financial decisions are spread out over time and are usually not known with certainty in advance by either the decision maker or anybody else.A basic tenet of finance is that the ultimate function of the system is to satisfy people’s consumption preferences. Economic organizations such as firms and governments exist in order to facilitate the achievement of that ultimate function. Many financial decisions can be made strictly on the basis of improving the trade-offs available to people without knowledge of their consumption preferences.There are at least five good reasons to study finance:y To manage your personal resources.y To deal with the world of business.y To pursue interesting and rewarding career opportunities.y To make informed public choices as a citizen.y To expand your mind.The players in finance theory are households, business firms, financial intermediaries, and governments. Households occupy a special place in the theory because the ultimate function of the system is to satisfy the preferences of people, and the theory treats those preferences as given. Finance theory explains household behavior as an attempt to satisfy those preferences. The behavior of firms is viewed from the perspective of how it affects the welfare of households.Households face four basic types of financial decisions:y Saving decisions: How much of their current income should they save for the future?y Investment decisions: How should they invest the money they have saved?y Financing decisions: When and how should they use other people’s money to sa tisfy their wants and needs?y Risk-management decisions: How and on what terms should they seek to reduce the economic uncertainties they face or to take calculated risks?There are three main areas of financial decision making in a business: capital budgeting, capital structure, and working capital management.There are five reasons for separating the management from the ownership of a business enterprise: y Professional managers may be found who have a superior ability to run the business.y To achieve the efficient scale of a business the resources of many households may have to be pooled.y In an uncertain economic environment, owners will want to diversify their risks across many firms. Such efficient diversification is difficult to achieve without separation ofownership and management.y To achieve savings in the costs of gathering information.y The “learning curve” or “going concern” effect: When the owner is also the manager, the new owner has to learn the business from the former owner in order to manage it efficiently. If the owner is not the manager, then when the business is sold, the manager continues in place and works for the new owner.The corporate form is especially well suited to the separation of ownership and management of firms because it allows relatively frequent changes in owners by share transfer without affecting the operations of the firm.The primary goal of corporate management is to maximize shareholder wealth. It leads managers to make the same investment decisions that each of the individual owners would have made had they made the decisions themselves.A competitive stock market imposes a strong discipline on managers to take actions to maximize the market value of the firm’s shares.。
(完整版)第二章金融体系预览(英文习题及答案)

Chapter 2 Overview of the Financial System2.1 Single Choice1) Every financial market performs the following function:A) It determines the level of interest rates.B) It allows common stock to be traded.C) It allows loans to be made.D) It channels funds from lenders-savers to borrowers-spenders.2) Financial markets have the basic function ofA) bringing together people with funds to lend and people who want to borrow funds.B) assuring that the swings in the business cycle are less pronounced.C) assuring that governments need never resort to printing money.D) both A and B of the above.E) both B and C of the above.3) Which of the following can be described as involving direct finance?A) A corporation's stock is traded in an over-the-counter market.B) People buy shares in a mutual fund.C) A pension fund manager buys commercial paper in the secondary market.D) An insurance company buys shares of common stock in the over-the-counter markets.E) None of the above.4) Which of the following can be described as involving direct finance?A) A corporation's stock is traded in an over-the-counter market.B) A corporation buys commercial paper issued by another corporation.C) A pension fund manager buys commercial paper from the issuing corporation.D) Both A and B of the above.E) Both B and C of the above.5) Which of the following can be described as involving indirect finance?A) A corporation takes out loans from a bank.B) People buy shares in a mutual fund.C) A corporation buys commercial paper in a secondary market.D) All of the above.E) Only A and B of the above.6) Which of the following can be described as involving indirect finance?A) A bank buys a U.S. Treasury bill from one of its depositors.B) A corporation buys commercial paper issued by another corporation.C) A pension fund manager buys commercial paper in the primary market.D) Both A and C of the above.7) Financial markets improve economic welfare becauseA) they allow funds to move from those without productive investment opportunities to those who have such opportunities.B) they allow consumers to time their purchases better.C) they weed out inefficient firms.D) they do all of the above.E) they do A and B of the above.8) A country whose financial markets function poorly is likely toA) efficiently allocate its capital resources.B) enjoy high productivity.C) experience economic hardship and financial crises.D) increase its standard of living.9) Which of the following are securities?A) A certificate of depositB) A share of Texaco common stockC) A Treasury billD) All of the aboveE) Only A and B of the above10) Which of the following statements about the characteristics of debt and equity are true?A) They both can be long-term financial instruments.B) They both involve a claim on the issuer's income.C) They both enable a corporation to raise funds.D) All of the above.E) Only A and B of the above.11) The money market is the market in which _________ are traded.A) new issues of securitiesB) previously issued securitiesC) short-term debt instrumentsD) long-term debt and equity instruments12) Long-term debt and equity instruments are traded in the _________ market.A) primaryB) secondaryC) capitalD) money13) Which of the following are primary markets?A) The New York Stock ExchangeB) The U.S. government bond marketC) The over-the-counter stock marketD) The options marketsE) None of the above14) Which of the following are secondary markets?A) The New York Stock ExchangeB) The U.S. government bond marketC) The over-the-counter stock marketD) The options marketsE) All of the above15) A corporation acquires new funds only when its securities are sold in theA) secondary market by an investment bank.B) primary market by an investment bank.C) secondary market by a stock exchange broker.D) secondary market by a commercial bank.16) Intermediaries who are agents of investors and match buyers with sellers of securities are calledA) investment bankers.B) traders.C) brokers.D) dealers.E) none of the above.17) Intermediaries who link buyers and sellers by buying and selling securities at stated prices are calledA) investment bankers.B) traders.C) brokers.D) dealers.E) none of the above.18) An important financial institution that assists in the initial sale of securities in the primary market is theA) investment bank.B) commercial bank.C) stock exchange.D) brokerage house.19) Which of the following statements about financial markets and securities are true?A) Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the New York Stock Exchange.B) A corporation acquires new funds only when its securities are sold in the primary market.C) Money market securities are usually more widely traded than longer-term securities and so tendto be more liquid.D) All of the above are true.E) Only A and B of the above are true.20) Which of the following statements about financial markets and securities are true?A) A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.B) A debt instrument is intermediate term if its maturity is less than one year.C) A debt instrument is long term if its maturity is ten years or longer.D) The maturity of a debt instrument is the time (term) that has elapsed since it was issued.21) Which of the following statements about financial markets and securities are true?A) Few common stocks are traded over-the-counter, although the over-the-counter markets have grown in recent years.B) A corporation acquires new funds only when its securities are sold in the primary market.C) Capital market securities are usually more widely traded than longer term securities and so tend to be more liquid.D) All of the above are true.E) Only A and B of the above are true.22) Which of the following markets is sometimes organized as an over-the-counter market?A) The stock marketB) The bond marketC) The foreign exchange marketD) The federal funds marketE) all of the above23) Bonds that are sold in a foreign country and are denominated in that country's currency are known asA) foreign bonds.B) Eurobonds.C) Eurocurrencies.D) Eurodollars.24) Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which they are sold are known asA) foreign bonds.B) Eurobonds.C) Eurocurrencies.D) Eurodollars.25) Financial intermediariesA) exist because there are substantial information and transaction costs in the economy.B) improve the lot of the small saver.C) are involved in the process of indirect finance.D) do all of the above.E) do only A and B of the above.26) The main sources of financing for businesses, in order of importance, areA) financial intermediaries, issuing bonds, issuing stocks.B) issuing bonds, issuing stocks, financial intermediaries.C) issuing stocks, issuing bonds, financial intermediaries.D) issuing stocks, financial intermediaries, issuing bonds.27) The presence of transaction costs in financial markets explains, in part, whyA) financial intermediaries and indirect finance play such an important role in financial markets.B) equity and bond financing play such an important role in financial markets.C) corporations get more funds through equity financing than they get from financial intermediaries.D) direct financing is more important than indirect financing as a source of funds.28) Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage ofA) poorly informed consumers.B) standardization.C) economies of scale.D) their market power.29) The purpose of diversification is toA) reduce the volatility of a portfolio's return.B) raise the volatility of a portfolio's return.C) reduce the average return on a portfolio.D) raise the average return on a portfolio.30) An investor who puts all her funds into one asset _________ her portfolio's _________.A) increases; diversificationB) decreases; diversificationC) increases; average returnD) decreases; average return31) Through risk-sharing activities, a financial intermediary _________ its own risk and _________ the risks of its customers.A) reduces; increasesB) increases; reducesC) reduces; reducesD) increases; increases32) The presence of _________ in financial markets leads to adverse selection and moral hazardproblems that interfere with the efficient functioning of financial markets.A) noncollateralized riskB) free-ridingC) asymmetric informationD) costly state verification33) When the lender and the borrower have different amounts of information regarding a transaction, _________ is said to exist.A) asymmetric informationB) adverse selectionC) moral hazardD) fraud34) When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _________ is said to exist.A) asymmetric informationB) adverse selectionC) moral hazardD) fraud35) When the borrower engages in activities that make it less likely that the loan will be repaid, _________ is said to exist.A) asymmetric informationB) adverse selectionC) moral hazardD) fraud36) The concept of adverse selection helps to explainA) which firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets.B) why indirect finance is more important than direct finance as a source of business finance.C) why direct finance is more important than indirect finance as a source of business finance.D) only A and B of the above.E) only A and C of the above.37) Adverse selection is a problem associated with equity and debt contracts arising fromA) the lender's relative lack of information about the borrower's potential returns and risks of his investment activities.B) the lender's inability to legally require sufficient collateral to cover a 100 percent loss if the borrower defaults.C) the borrower's lack of incentive to seek a loan for highly risky investments.D) none of the above.38) When the least desirable credit risks are the ones most likely to seek loans, lenders are subjectto theA) moral hazard problem.B) adverse selection problem.C) shirking problem.D) free-rider problem.E) principal-agent problem.39) Financial institutions expect thatA) moral hazard will occur, as the least desirable credit risks will be the ones most likely to seek out loans.B) opportunistic behavior will occur, as the least desirable credit risks will be the ones most likely to seek out loans.C) borrowers will commit moral hazard by taking on too much risk, and this is what drives financial institutions to take steps to limit moral hazard.D) none of the above will occur.40) Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks, thereby reducing losses due toA) moral hazard.B) adverse selection.C) bad luck.D) financial panics.41) In financial markets, lenders typically have inferior information about potential returns and risks associated with any investment project. This difference in information is calledA) comparative informational disadvantage.B) asymmetric information.C) variant information.D) caveat venditor.42) The largest depository institution at the end of 2004 wasA) life insurance companies.B) pension funds.C) state retirement funds.D) none of the above.43) Which of the following financial intermediaries are depository institutions?A) A savings and loan associationB) A commercial bankC) A credit unionD) All of the aboveE) Only A and C of the above44) Which of the following is a contractual savings institution?A) A life insurance companyB) A credit unionC) A savings and loan associationD) A mutual fund45) Which of the following are not investment intermediaries?A) A life insurance companyB) A pension fundC) A mutual fundD) Only A and B of the above46) Which of the following are investment intermediaries?A) Finance companiesB) Mutual fundsC) Pension fundsD) All of the aboveE) Only A and B of the above47) The government regulates financial markets for three main reasons:A) to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors.B) to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors.C) to ensure that financial intermediaries do not earn more than the normal rate of return, to ensure soundness of the financial system, and to improve control of monetary policy.D) to ensure soundness of financial intermediaries, to increase the information available to investors, and to prevent financial intermediaries from earning less than the normal rate of return.48) Which of the following government regulations has the chief purpose of improving control of the money supply?A) deposit insuranceB) restrictions on entry into banking or insuranceC) reserve requirementsD) restrictions on the assets financial intermediaries can hold49) Asymmetric information can lead to widespread collapse of financial intermediaries, referred to as aA) bank holiday.B) financial panic.C) financial disintermediation.D) financial collapse.50) Foreign currencies that are deposited in banks outside the home country are known asA) foreign bonds.B) Eurobond.C) Eurocurrencies.D) Eurodollars.51) U.S. dollars deposited in foreign banks outside the United States or in foreign branches of U.S. are referred to asA) Eurodollars.B) Eurocurrencies.C) Eurobonds.D) foreign bonds.52) Banks providing depositors with checking accounts that enable them to pay their bills easily is known asA) liquidity services.B) asset transformation.C) risk sharing.D) transaction costs.53) A ________ is when one party in a financial contract has incentives to act in its own interest rather than in the interests of the other party.A) moral hazardB) riskC) conflict of interestD) financial panic54) Fire and casualty insurance companies are what type of intermediary?A) Contractual savings institutionB) Depository institutionsC) Investment intermediariesD) None of the above55) The country whose banks are the most restricted in the range of assets they may hold isA) Japan.B) Canada.C) Germany.D) the United States.答案:1-5:DAEBE 6-10:DECDD 11-15:CCEEB 16-20:CDADC 21-25:BEABD 26-30:AACAB 31-35:BCABC 36-40:DABCB 41-45:BDDAD 46-50:EACBC 51-55:AACAD。
金融市场学双语题库及答案(第二章)米什金金融市场与机构

Answer: D
Topic: Chapter 2.1 Function of Financial Markets
Question Status: Previous Edition
7) Financial markets improve economic welfare because
Topic: Chapter 2.2 Structure of Financial Markets
Question Status: Previous Edition
13) Which of the following are primary markets?
A) The New York Stock Exchange
Question Status: Previous Edition
14) Which of the following are secondary markets?
A) The New York Stock Exchange
B) The U.S. government bond market
C) The over-the-counter stock market
C) experience economic hardship and financial crises.
D) increase its standard of living.
Answer: C
Topic: Chapter 2.1 Function of Financial Markets
Question Status: Previous Edition
Answer: D
Topic: Chapter 2.1 Function of Financial Markets
货币金融学chapter 英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 4 The Meaning of Interest Rates4、1 Measuring Interest Rates1) The concept of ________ is based on the mon-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today、A) present valueB) future valueC) interestD) deflationAnswer: AAACSB: Application of Knowledge2) The present value of an expected future payment ________ as the interest rate increases、A) fallsB) risesC) is constantD) is unaffectedAnswer: AAACSB: Reflective Thinking3) An increase in the time to the promised future payment ________ the present value of the payment、A) decreasesB) increasesC) has no effect onD) is irrelevant toAnswer: AAACSB: Reflective Thinking4) With an interest rate of 6 percent, the present value of $100 next year is approximatelyA) $106、B) $100、C) $94、D) $92、Answer: CAACSB: Analytical Thinking5) What is the present value of $500、00 to be paid in two years if the interest rate is 5 percent?A) $453、51B) $500、00C) $476、25D) $550、00Answer: AAACSB: Analytical Thinking6) If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate isA) 5 percent、B) 10 percent、C) 12、5 percent、D) 15 percent、Answer: BAACSB: Analytical Thinking7) To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process ofA) face value、B) par value、C) deflation、D) discounting the future、Answer: DAACSB: Analytical Thinking8) A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: AAACSB: Application of Knowledge9) A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: BAACSB: Application of Knowledge10) Which of the following are TRUE of fixed payment loans?A) The borrower repays both the principal and interest at the maturity date、B) Installment loans and mortgages are frequently of the fixed payment type、C) The borrower pays interest periodically and the principal at the maturity date、D) mercial loans to businesses are often of this type、Answer: BAACSB: Reflective Thinking11) A fully amortized loan is another name forA) a simple loan、B) a fixed-payment loan、C) a mercial loan、D) an unsecured loan、Answer: BAACSB: Application of Knowledge12) A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: CAACSB: Application of Knowledge13) A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid、A) coupon bond; discountB) discount bond; discountC) coupon bond; faceD) discount bond; faceAnswer: CAACSB: Analytical Thinking14) The ________ is the final amount that will be paid to the holder of a coupon bond、A) discount valueB) coupon valueC) face valueD) present valueAnswer: CAACSB: Application of Knowledge15) When talking about a coupon bond, face value and ________ mean the same thing、A) par valueB) coupon valueC) amortized valueD) discount valueAnswer: AAACSB: Application of Knowledge16) The dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond is called the bond'sA) coupon rate、B) maturity rate、C) face value rate、D) payment rate、Answer: AAACSB: Application of Knowledge17) The ________ is calculated by multiplying the coupon rate times the par value of the bond、A) present valueB) face valueC) coupon paymentD) maturity paymentAnswer: CAACSB: Analytical Thinking18) If a $1000 face value coupon bond has a coupon rate of 3、75 percent, then the coupon payment every year isA) $37、50、B) $3、75、C) $375、00、D) $13、75Answer: AAACSB: Analytical Thinking19) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year isA) $650、B) $1,300、C) $130、D) $13、Answer: AAACSB: Analytical Thinking20) An $8,000 coupon bond with a $400 coupon payment every year has a coupon rate ofA) 5 percent、B) 8 percent、C) 10 percent、D) 40 percent、Answer: AAACSB: Analytical Thinking21) A $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate ofA) 、6 percent、B) 5 percent、C) 6 percent、D) 10 percent、Answer: CAACSB: Analytical Thinking22) All of the following are examples of coupon bonds EXCEPTA) corporate bonds、B) U、S、Treasury bills、C) U、S、Treasury notes、D) U、S、Treasury bonds、Answer: BAACSB: Analytical Thinking23) A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: DAACSB: Application of Knowledge24) A ________ is bought at a price below its face value, and the ________ value is repaid at the maturity date、A) coupon bond; discountB) discount bond; discountC) coupon bond; faceD) discount bond; faceAnswer: DAACSB: Analytical Thinking25) A discount bondA) pays the bondholder a fixed amount every period and the face value at maturity、B) pays the bondholder the face value at maturity、C) pays all interest and the face value at maturity、D) pays the face value at maturity plus any capital gain、Answer: BAACSB: Reflective Thinking26) Examples of discount bonds includeA) U、S、Treasury bills、B) corporate bonds、C) U、S、Treasury notes、D) municipal bonds、Answer: AAACSB: Analytical Thinking27) Which of the following are TRUE for discount bonds?A) A discount bond is bought at par、B) The purchaser receives the face value of the bond at the maturity date、C) U、S、Treasury bonds and notes are examples of discount bonds、D) The purchaser receives the par value at maturity plus any capital gains、Answer: BAACSB: Reflective Thinking28) The interest rate that equates the present value of payments received from a debt instrument with its value today is theA) simple interest rate、B) current yield、C) yield to maturity、D) real interest rate、Answer: CAACSB: Application of Knowledge29) Economists consider the ________ to be the most accurate measure of interest rates、A) simple interest rate、B) current yield、C) yield to maturity、D) real interest rate、Answer: CAACSB: Reflective Thinking30) For simple loans, the simple interest rate is ________ the yield to maturity、A) greater thanB) less thanC) equal toD) not parable toAnswer: CAACSB: Application of Knowledge31) If the amount payable in two years is $2420 for a simple loan at 10 percent interest, the loan amount isA) $1000、B) $1210、C) $2000、D) $2200、Answer: CAACSB: Analytical Thinking32) For a 3-year simple loan of $10,000 at 10 percent, the amount to be repaid isA) $10,030、B) $10,300、C) $13,000、D) $13,310、Answer: DAACSB: Analytical Thinking33) If $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate isA) 5 percent、B) 10 percent、C) 22 percent、D) 25 percent、Answer: AAACSB: Analytical Thinking34) If a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200?A) 9 percentB) 10 percentC) 11 percentD) 12 percentAnswer: BAACSB: Analytical Thinking35) The present value of a fixed-payment loan is calculated as the ________ of the present value of all cash flow payments、A) sumB) differenceC) multipleD) logAnswer: AAACSB: Analytical Thinking36) Which of the following are TRUE for a coupon bond?A) When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate、B) The price of a coupon bond and the yield to maturity are positively related、C) The yield to maturity is greater than the coupon rate when the bond price is above the par value、D) The yield is less than the coupon rate when the bond price is below the par value、Answer: AAACSB: Reflective Thinking37) The ________ of a coupon bond and the yield to maturity are inversely related、A) priceB) par valueC) maturity dateD) termAnswer: AAACSB: Reflective Thinking38) The price of a coupon bond and the yield to maturity are ________ related; that is, as the yield to maturity ________, the price of the bond ________、A) positively; rises; risesB) negatively; falls; fallsC) positively; rises; fallsD) negatively; rises; fallsAnswer: DAACSB: Reflective Thinking39) The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value、A) greater; coupon; aboveB) greater; coupon; belowC) greater; perpetuity; aboveD) less; perpetuity; belowAnswer: BAACSB: Reflective Thinking40) The ________ is below the coupon rate when the bond price is ________ its par value、A) yield to maturity; aboveB) yield to maturity; belowC) discount rate; aboveD) discount rate; belowAnswer: AAACSB: Reflective Thinking41) A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity ofA) 8 percent、B) 10 percent、C) 12 percent、D) 14 percent、Answer: AAACSB: Analytical Thinking42) Which of the following $1,000 face-value securities has the highest yield to maturity?A) a 5 percent coupon bond selling for $1,000B) a 10 percent coupon bond selling for $1,000C) a 12 percent coupon bond selling for $1,000D) a 12 percent coupon bond selling for $1,100Answer: CAACSB: Analytical Thinking43) Which of the following $5,000 face-value securities has the highest yield to maturity?A) a 6 percent coupon bond selling for $5,000B) a 6 percent coupon bond selling for $5,500C) a 10 percent coupon bond selling for $5,000D) a 12 percent coupon bond selling for $4,500Answer: DAACSB: Analytical Thinking44) Which of the following $1,000 face-value securities has the highest yield to maturity?A) a 5 percent coupon bond with a price of $600B) a 5 percent coupon bond with a price of $800C) a 5 percent coupon bond with a price of $1,000D) a 5 percent coupon bond with a price of $1,200Answer: AAACSB: Analytical Thinking45) Which of the following $1,000 face-value securities has the lowest yield to maturity?A) a 5 percent coupon bond selling for $1,000B) a 10 percent coupon bond selling for $1,000C) a 15 percent coupon bond selling for $1,000D) a 15 percent coupon bond selling for $900Answer: AAACSB: Analytical Thinking46) Which of the following bonds would you prefer to be buying?A) a $10,000 face-value security with a 10 percent coupon selling for $9,000B) a $10,000 face-value security with a 7 percent coupon selling for $10,000C) a $10,000 face-value security with a 9 percent coupon selling for $10,000D) a $10,000 face-value security with a 10 percent coupon selling for $10,000 Answer: AAACSB: Analytical Thinking47) A coupon bond that has no maturity date and no repayment of principal is called aA) consol、B) cabinet、C) Treasury bill、D) Treasury note、Answer: AAACSB: Application of Knowledge48) The price of a consol equals the coupon paymentA) times the interest rate、B) plus the interest rate、C) minus the interest rate、D) divided by the interest rate、Answer: DAACSB: Analytical Thinking49) The interest rate on a consol equals theA) price times the coupon payment、B) price divided by the coupon payment、C) coupon payment plus the price、D) coupon payment divided by the price、Answer: DAACSB: Analytical Thinking50) A consol paying $20 annually when the interest rate is 5 percent has a price ofA) $100、B) $200、C) $400、D) $800、Answer: CAACSB: Analytical Thinking51) If a perpetuity has a price of $500 and an annual interest payment of $25, the interest rate isA) 2、5 percent、B) 5 percent、C) 7、5 percent、D) 10 percent、Answer: BAACSB: Analytical Thinking52) The yield to maturity for a perpetuity is a useful approximation for the yield to maturity on long-term coupon bonds、It is called the ________ when approximating the yield for a coupon bond、A) current yieldB) discount yieldC) future yieldD) star yieldAnswer: AAACSB: Reflective Thinking53) The yield to maturity for a one-year discount bond equals the increase in price over the year, divided by theA) initial price、B) face value、C) interest rate、D) coupon rate、Answer: AAACSB: Analytical Thinking54) If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity isA) 5 percent、B) 10 percent、C) 50 percent、D) 100 percent、Answer: DAACSB: Analytical Thinking55) If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity isA) 0 percent、B) 5 percent、C) 10 percent、D) 20 percent、Answer: AAACSB: Analytical Thinking56) A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to maturity ofA) 3 percent、B) 20 percent、C) 25 percent、D) 33、3 percent、Answer: DAACSB: Analytical Thinking57) The yield to maturity for a discount bond is ________ related to the current bond price、A) negativelyB) positivelyC) notD) directlyAnswer: AAACSB: Reflective Thinking58) A discount bond is also called a ________ because the owner does not receive periodic payments、A) zero-coupon bondB) municipal bondC) corporate bondD) consolAnswer: AAACSB: Application of Knowledge59) Another name for a consol is a ________ because it is a bond with no maturity date、The owner receives fixed coupon payments forever、A) perpetuityB) discount bondC) municipalityD) high-yield bondAnswer: AAACSB: Application of Knowledge60) If the interest rate is 5%, what is the present value of a security that pays you $1, 050 next year and $1,102、50 two years from now? If this security sold for $2200, is the yield to maturity greater or less than 5%? Why?Answer: PV = $1,050/(1、+、05) + $1,102、50/(1 + 0、5)2PV = $2,000If this security sold for $2200, the yield to maturity is less than 5%、The lower the interest rate the higher the present value、AACSB: Analytical Thinking4、2 The Distinction Between Interest Rates and Returns1) The ________ is defined as the payments to the owner plus the change in a security's value expressed as a fraction of the security's purchase price、A) yield to maturityB) current yieldC) rate of returnD) yield rateAnswer: CAACSB: Application of Knowledge2) Which of the following are TRUE concerning the distinction between interest rates and returns?A) The rate of return on a bond will not necessarily equal the interest rate on that bond、B) The return can be expressed as the difference between the current yield and the rate of capital gains、C) The rate of return will be greater than the interest rate when the price of the bond falls during the holding period、D) The return can be expressed as the sum of the discount yield and the rate of capital gains、Answer: AAACSB: Reflective Thinking3) The sum of the current yield and the rate of capital gain is called theA) rate of return、B) discount yield、C) perpetuity yield、D) par value、Answer: AAACSB: Analytical Thinking4) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 next year?A) 5 percentB) 10 percentC) -5 percentD) 25 percentAnswer: DAACSB: Analytical Thinking5) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year?A) 5 percentB) 10 percentC) -5 percentD) -10 percentAnswer: CAACSB: Analytical Thinking6) The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year isA) -10 percent、B) -5 percent、C) 0 percent、D) 5 percent、Answer: CAACSB: Analytical Thinking7) Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent、If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year, what is the yearly return on the bond you are holding?A) 5 percentB) 10 percentC) 15 percentD) 20 percentAnswer: CAACSB: Analytical Thinking8) I purchase a 10 percent coupon bond、Based on my purchase price, I calculate a yield to maturity of 8 percent、If I hold this bond to maturity, then my return on this asset isA) 10 percent、B) 8 percent、C) 12 percent、D) there is not enough information to determine the return、Answer: BAACSB: Analytical Thinking9) If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have been holding?A) a bond with one year to maturityB) a bond with five years to maturityC) a bond with ten years to maturityD) a bond with twenty years to maturityAnswer: AAACSB: Analytical Thinking10) An equal decrease in all bond interest ratesA) increases the price of a five-year bond more than the price of a ten-year bond、B) increases the price of a ten-year bond more than the price of a five-year bond、C) decreases the price of a five-year bond more than the price of a ten-year bond、D) decreases the price of a ten-year bond more than the price of a five-year bond、Answer: BAACSB: Analytical Thinking11) An equal increase in all bond interest ratesA) increases the return to all bond maturities by an equal amount、B) decreases the return to all bond maturities by an equal amount、C) has no effect on the returns to bonds、D) decreases long-term bond returns more than short-term bond returns、Answer: DAACSB: Analytical Thinking12) Which of the following are generally TRUE of bonds?A) A bond's return equals the yield to maturity when the time to maturity is the same as the holding period、B) A rise in interest rates is associated with a fall in bond prices, resulting in capital gains on bonds whose terms to maturity are longer than the holding periods、C) The longer a bond's maturity, the smaller is the size of the price change associated with an interest rate change、D) Prices and returns for short-term bonds are more volatile than those for longer-term bonds、Answer: AAACSB: Reflective Thinking13) Which of the following are generally TRUE of all bonds?A) The longer a bond's maturity, the greater is the rate of return that occurs as a result of the increase in the interest rate、B) Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise、C) Prices and returns for short-term bonds are more volatile than those for longer term bonds、D) A fall in interest rates results in capital losses for bonds whose terms to maturity are longer than the holding period、Answer: BAACSB: Reflective Thinking14) The riskiness of an asset's returns due to changes in interest rates isA) exchange-rate risk、B) price risk、C) asset risk、D) interest-rate risk、Answer: DAACSB: Application of Knowledge15) Interest-rate risk is the riskiness of an asset's returns due toA) interest-rate changes、B) changes in the coupon rate、C) default of the borrower、D) changes in the asset's maturity、Answer: AAACSB: Application of Knowledge16) Prices and returns for ________ bonds are more volatile than those for ________ bonds, everything else held constant、A) long-term; long-termB) long-term; short-termC) short-term; long-termD) short-term; short-termAnswer: BAACSB: Reflective Thinking7) There is ________ for any bond whose time to maturity matches the holding period、A) no interest-rate riskB) a large interest-rate riskC) rate-of-return riskD) yield-to-maturity riskAnswer: AAACSB: Analytical Thinking18) All bonds that will not be held to maturity have interest rate risk which occurs because of the change in the price of the bond as a result ofA) interest-rate changes、B) changes in the coupon rate、C) default of the borrower、D) changes in the asset's maturity date、Answer: AAACSB: Application of Knowledge19) Your favorite uncle advises you to purchase long-term bonds because their interest rate is 10%、Should you follow his advice?Answer: It depends on where you think interest rates are headed in the future、If you think interest rates will be going up, you should not follow your uncle's advice because you would then have to discount your bond if you needed to sell it before the maturity date、Long-term bonds have a greater interest-rate risk、AACSB: Reflective Thinking4、3 The Distinction Between Real and Nominal Interest Rates1) The ________ interest rate is adjusted for expected changes in the price level、A) ex ante realB) ex post realC) ex post nominalD) ex ante nominalAnswer: AAACSB: Application of Knowledge2) The ________ interest rate more accurately reflects the true cost of borrowing、A) nominalB) realC) discountD) marketAnswer: BAACSB: Analytical Thinking3) The nominal interest rate minus the expected rate of inflationA) defines the real interest rate、B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate、C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate、D) defines the discount rate、Answer: AAACSB: Analytical Thinking4) When the ________ interest rate is low, there are greater incentives to ________ and fewer incentives to ________、A) nominal; lend; borrowB) real; lend; borrowC) real; borrow; lendD) market; lend; borrowAnswer: CAACSB: Reflective Thinking5) The interest rate that describes how well a lender has done in real terms after the fact is called theA) ex post real interest rate、B) ex ante real interest rate、C) ex post nominal interest rate、D) ex ante nominal interest rate、Answer: AAACSB: Analytical Thinking6) The ________ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation、A) Fisher equationB) Keynesian equationC) Monetarist equationD) Marshall equationAnswer: AAACSB: Application of Knowledge7) If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent, the real rate of interest isA) 2 percent、B) 8 percent、C) 10 percent、D) 12 percent、Answer: DAACSB: Analytical Thinking8) In which of the following situations would you prefer to be the lender?A) The interest rate is 9 percent and the expected inflation rate is 7 percent、B) The interest rate is 4 percent and the expected inflation rate is 1 percent、C) The interest rate is 13 percent and the expected inflation rate is 15 percent、D) The interest rate is 25 percent and the expected inflation rate is 50 percent、Answer: BAACSB: Analytical Thinking9) In which of the following situations would you prefer to be the borrower?A) The interest rate is 9 percent and the expected inflation rate is 7 percent、B) The interest rate is 4 percent and the expected inflation rate is 1 percent、C) The interest rate is 13 percent and the expected inflation rate is 15 percent、D) The interest rate is 25 percent and the expected inflation rate is 50 percent、Answer: DAACSB: Analytical Thinking10) If you expect the inflation rate to be 15 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) 7 percent、B) 22 percent、C) -15 percent、D) -8 percent、Answer: DAACSB: Analytical Thinking11) If you expect the inflation rate to be 12 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) -5 percent、B) -2 percent、C) 2 percent、D) 12 percent、Answer: AAACSB: Analytical Thinking12) If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) -3 percent、B) -2 percent、C) 3 percent、D) 7 percent、Answer: CAACSB: Analytical Thinking13) In the United States during the late 1970s, the nominal interest rates were quite high, but the real interest rates were negative、From the Fisher equation, we can conclude that expected inflation in the United States during this period wasA) irrelevant、B) low、C) negative、D) high、Answer: DAACSB: Reflective Thinking14) The interest rate on Treasury Inflation Indexed Securities can be roughly interpreted asA) the real interest rate、B) the nominal interest rate、C) the rate of inflation、D) the rate of deflation、Answer: AAACSB: Analytical Thinking15) Assuming the same coupon rate and maturity length, the difference between the yield on a Treasury Inflation Indexed Security and the yield on a nonindexed Treasury security provides insight intoA) the nominal interest rate、B) the real interest rate、C) the nominal exchange rate、D) the expected inflation rate、Answer: DAACSB: Analytical Thinking16) Assuming the same coupon rate and maturity length, when the interest rate on a Treasury Inflation Indexed Security is 3 percent, and the yield on a nonindexed Treasury bond is 8 percent, the expected rate of inflation isA) 3 percent、B) 5 percent、C) 8 percent、D) 11 percent、Answer: BAACSB: Analytical Thinking17) Would it make sense to buy a house when mortgage rates are 14% and expected inflation is 15%? Explain your answer、Answer: Even though the nominal rate for the mortgage appears high, the real cost of borrowing the funds is -1%、Yes, under this circumstance it would be reasonable to make this purchase、AACSB: Reflective Thinking4、4 Web Appendix: Measuring Interest-Rate Risk: Duration1) Duration isA) an asset's term to maturity、B) the time until the next interest payment for a coupon bond、C) the average lifetime of a debt security's stream of payments、D) the time between interest payments for a coupon bond、Answer: CAACSB: Application of Knowledge2) paring a discount bond and a coupon bond with the same maturityA) the coupon bond has the greater effective maturity、B) the discount bond has the greater effective maturity、C) the effective maturity cannot be calculated for a coupon bond、D) the effective maturity cannot be calculated for a discount bond、Answer: BAACSB: Reflective Thinking3) The duration of a coupon bond increasesA) the longer is the bond's term to maturity、B) when interest rates increase、C) the higher the coupon rate on the bond、D) the higher the bond price、Answer: AAACSB: Reflective Thinking4) All else equal, when interest rates ________, the duration of a coupon bond ________、A) rise; fallsB) rise; increasesC) falls; fallsD) falls; does not changeAnswer: AAACSB: Reflective Thinking5) All else equal, the ________ the coupon rate on a bond, the ________ the bond's duration、A) higher; longerB) higher; shorterC) lower; shorterD) greater; longerAnswer: BAACSB: Reflective Thinking。
(完整word版)英文版国际金融试题和答案

PartⅠ.Decide whether each of the following statements is true or false (10%)每题1分, 答错不扣分1.I.perfec.market.existed.resource.woul.b.mor.mobil.an.coul.therefor.b.transferre.t.thos.countrie.mor.willin.t.pa..hig.pric.fo.them.. .. .2.Th.forwar.contrac.ca.hedg.futur.receivable.o.payable.i.foreig.currencie.t.insulat.th.fir.agains.exchang.rat.risk ... . )3.Th.primar.objectiv.o.th.multinationa.corporatio.i.stil.th.sam.primar.objectiv.o.an.firm.i.e..t.maximiz.sharehol de.wealth.. .. )4..lo.inflatio.rat.tend.t.increas.import.an.decreas.exports.thereb.decreasin.th.curren.accoun.deficit.othe.thing.e qual......5..capita.accoun.defici.reflect..ne.sal.o.th.hom.currenc.i.exchang.fo.othe.currencies.Thi.place.upwar.pressur.o.tha.hom.currency’.value.. .. )parativ.advantag.implie.tha.countrie.shoul.specializ.i.production.thereb.relyin.o.othe.countrie .fo.som.products.. .. .7.Covere.interes.arbitrag.i.plausibl.whe.th.forwar.premiu.reflec.th.interes.rat.differentia.betwee.tw.countrie.sp ecifie.b.th.interes.rat.parit.formula. .. . )8.Th.tota.impac.o.transactio.exposur.i.o.th.overal.valu.o.th.firm.. .. .9. .pu.optio.i.a.optio.t.sell-b.th.buye.o.th.option-.state.numbe.o.unit.o.th.underlyin.instrumen.a..specifie.pric.pe.uni.durin..specifie.period... . )10.Future.mus.b.marked-to-market.Option.ar.not.....)PartⅡ:Cloze (20%)每题2分, 答错不扣分1.I.inflatio.i..foreig.countr.differ.fro.inflatio.i.th.hom.country.th.exchang.rat.wil.adjus.t.maintai.equal.. purchasin.powe... )2.Speculator.wh.expec..currenc.t..appreciat..... .coul.purchas.currenc.future.contract.fo.tha.currency.3.Covere.interes.arbitrag.involve.th.short-ter.investmen.i..foreig.currenc.tha.i.covere.b.....forwar.contrac...... .t. sel.tha.currenc.whe.th.investmen.matures.4.. Appreciation.Revalu....)petitio.i.increased.5.....PP... .suggest..relationshi.betwee.th.inflatio.differentia.o.tw.countrie.an.th.percentag.chang.i.th.spo.exchang.ra t.ove.time.6.IF.i.base.o.nomina.interes.rat....differential....).whic.ar.influence.b.expecte.inflation.7.Transactio.exposur.i..subse.o.economi.exposure.Economi.exposur.include.an.for.b.whic.th.firm’... valu... .wil.b.affected.modit.a..state.pric.i..... pu..optio..i.exercised9.Ther.ar.thre.type.o.long-ter.internationa.bonds.The.ar.Globa.bond. .. eurobond.....an....foreig.bond...).10.An.goo.secondar.marke.fo.financ.instrument.mus.hav.a.efficien.clearin.system.Mos.Eurobond.ar.cleare.thr oug.eithe...Euroclea... ..o.Cedel.PartⅢ:Questions and Calculations (60%)过程正确结果计算错误扣2分rmation:A BankB BankBid price of Canadian dollar $0.802 $0.796Ask price of Canadian dollar $0.808 $0.800rmation.i.locationa.arbitrag.possible?put.t h.profi.fro.thi.arbitrag.i.yo.ha.$1,000,e.(5%)ANSWER:Yes! One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802. With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank. These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500.2.Assum.tha.th.spo.exchang.rat.o.th.Britis.poun.i.$1.90..Ho.wil.thi.spo.rat.adjus.i.tw.year.i.th.Unite.Kingdo.experience.a.inflatio.rat.o..percen.pe.yea.whil.th.Unite.State.experience.a.inflatio.rat.o..perc en. pe.year?(10%)ANSWER:According to PPP, forward rate/spot=indexdom/indexforth.exchang.rat.o.th.poun.wil.depreciat.b.4..percent.Therefore.th.spo.rat.woul.adjus.t.$1.9..[..(–.047)..$1.81073.Assum.tha.th.spo.exchang.rat.o.th.Singapor.dolla.i.$0.70..Th.one-yea.interes.rat.i.1.percen.i.th.Unite.State.a n..percen.i.Singapore..Wha.wil.th.spo.rat.b.i.on.yea.accordin.t.th.IFE?.(5%)ANSWER: according to the IFE,St+1/St=(1+Rh)/(1+Rf)$.70 × (1 + .04) = $0.7284.Assum.tha.XY.Co.ha.ne.receivable.o.100,00.Singapor.dollar.i.9.days..Th.spo.rat.o.th.S.i.$0.50.an.th.Singap or.interes.rat.i.2.ove.9.days..Sugges.ho.th.U.S.fir.coul.implemen..mone.marke.hedge..B.precis. .(10%)ANSWER: The firm could borrow the amount of Singapore dollars so that the 100,000 Singapore dollars to be received could be used to pay off the loan. This amounts to (100,000/1.02) = about S$98,039, which could be converted to about $49,020 and invested. The borrowing of Singapore dollars has offset the transaction exposure due to the future receivables in Singapore dollars.pan.ordere..Jagua.sedan.I..month..i.wil.pa.£30,00.fo.th.car.I.worrie.tha.poun.ster1in.migh.ris.sharpl.fro.th.curren.rate($1.90)pan.bough...mont.poun.cal.(suppose.contrac.siz..£35,000.wit..strik.pric.o.$1.9.fo..premiu.o.2..cents/£.(1)Is hedging in the options market better if the £ rose to $1.92 in 6 months?(2)what did the exchange rate have to be for the company to break even?(15%)Solution:(1)I.th..ros.t.$pan.woul. exercis.th.poun.cal.option.Th.su.o.th.strik.pric.an.premiu..i.$1.90 + $0.023 = $1.9230/£Thi.i.bigge.tha.$1.92.So hedging in the options market is not better.(2.whe.w.sa.th. compan.ca.brea.even.w.mea.tha.hedgin.o.no.hedgin.doesn’. matter.An.onl.whe.(strik.pric..premiu.).th.exchang.rat.,hedging or not doesn’t matter.So, the exchange rate =$1.923/£.6.Discus.th.advantage.an.disadvantage.o.fixe.exchang.rat.system.(15%)textbook page50 答案以教材第50 页为准PART Ⅳ: Diagram(10%)Th.strik.pric.fo..cal.i.$1.67/£.Th.premiu.quote.a.th.Exchang.i.$0.022.pe.Britis.pound.Diagram the profit and loss potential, and the break-even price for this call optionSolution:Following diagram shows the profit and loss potential, and the break-even price of this put option:PART Ⅴa) b) Calculate the expected value of the hedge.c) How could you replicate this hedge in the money market?Yo.ar.expectin.revenue.o.Y100,00.i.on.mont.tha.yo.wil.nee.t.cover.t.dollars.Yo.coul.hedg.thi.i.forwar.market.b.takin.lon.position.i.U.dollar.(shor.position.i.Japanes.Yen).B.lockin.i.you.pric.a.$..Y105.you.dolla.revenue.ar.guarantee.t.b.Y100,000/ 105 = $952You could replicate this hedge by using the following:a) Borrow in Japanb) Convert the Yen to dollarsc) Invest the dollars in the USd) Pay back the loan when you receive the Y100,000。
(完整版)第二章金融体系预览(英文习题及答案)

Chapter 2 Overview of the Financial System2.1 Single Choice1) Every financial market performs the following function:A) It determines the level of interest rates.B) It allows common stock to be traded.C) It allows loans to be made.D) It channels funds from lenders-savers to borrowers-spenders.2) Financial markets have the basic function ofA) bringing together people with funds to lend and people who want to borrow funds.B) assuring that the swings in the business cycle are less pronounced.C) assuring that governments need never resort to printing money.D) both A and B of the above.E) both B and C of the above.3) Which of the following can be described as involving direct finance?A) A corporation's stock is traded in an over-the-counter market.B) People buy shares in a mutual fund.C) A pension fund manager buys commercial paper in the secondary market.D) An insurance company buys shares of common stock in the over-the-counter markets.E) None of the above.4) Which of the following can be described as involving direct finance?A) A corporation's stock is traded in an over-the-counter market.B) A corporation buys commercial paper issued by another corporation.C) A pension fund manager buys commercial paper from the issuing corporation.D) Both A and B of the above.E) Both B and C of the above.5) Which of the following can be described as involving indirect finance?A) A corporation takes out loans from a bank.B) People buy shares in a mutual fund.C) A corporation buys commercial paper in a secondary market.D) All of the above.E) Only A and B of the above.6) Which of the following can be described as involving indirect finance?A) A bank buys a U.S. Treasury bill from one of its depositors.B) A corporation buys commercial paper issued by another corporation.C) A pension fund manager buys commercial paper in the primary market.D) Both A and C of the above.7) Financial markets improve economic welfare becauseA) they allow funds to move from those without productive investment opportunities to those who have such opportunities.B) they allow consumers to time their purchases better.C) they weed out inefficient firms.D) they do all of the above.E) they do A and B of the above.8) A country whose financial markets function poorly is likely toA) efficiently allocate its capital resources.B) enjoy high productivity.C) experience economic hardship and financial crises.D) increase its standard of living.9) Which of the following are securities?A) A certificate of depositB) A share of Texaco common stockC) A Treasury billD) All of the aboveE) Only A and B of the above10) Which of the following statements about the characteristics of debt and equity are true?A) They both can be long-term financial instruments.B) They both involve a claim on the issuer's income.C) They both enable a corporation to raise funds.D) All of the above.E) Only A and B of the above.11) The money market is the market in which _________ are traded.A) new issues of securitiesB) previously issued securitiesC) short-term debt instrumentsD) long-term debt and equity instruments12) Long-term debt and equity instruments are traded in the _________ market.A) primaryB) secondaryC) capitalD) money13) Which of the following are primary markets?A) The New York Stock ExchangeB) The U.S. government bond marketC) The over-the-counter stock marketD) The options marketsE) None of the above14) Which of the following are secondary markets?A) The New York Stock ExchangeB) The U.S. government bond marketC) The over-the-counter stock marketD) The options marketsE) All of the above15) A corporation acquires new funds only when its securities are sold in theA) secondary market by an investment bank.B) primary market by an investment bank.C) secondary market by a stock exchange broker.D) secondary market by a commercial bank.16) Intermediaries who are agents of investors and match buyers with sellers of securities are calledA) investment bankers.B) traders.C) brokers.D) dealers.E) none of the above.17) Intermediaries who link buyers and sellers by buying and selling securities at stated prices are calledA) investment bankers.B) traders.C) brokers.D) dealers.E) none of the above.18) An important financial institution that assists in the initial sale of securities in the primary market is theA) investment bank.B) commercial bank.C) stock exchange.D) brokerage house.19) Which of the following statements about financial markets and securities are true?A) Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the New York Stock Exchange.B) A corporation acquires new funds only when its securities are sold in the primary market.C) Money market securities are usually more widely traded than longer-term securities and so tendto be more liquid.D) All of the above are true.E) Only A and B of the above are true.20) Which of the following statements about financial markets and securities are true?A) A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.B) A debt instrument is intermediate term if its maturity is less than one year.C) A debt instrument is long term if its maturity is ten years or longer.D) The maturity of a debt instrument is the time (term) that has elapsed since it was issued.21) Which of the following statements about financial markets and securities are true?A) Few common stocks are traded over-the-counter, although the over-the-counter markets have grown in recent years.B) A corporation acquires new funds only when its securities are sold in the primary market.C) Capital market securities are usually more widely traded than longer term securities and so tend to be more liquid.D) All of the above are true.E) Only A and B of the above are true.22) Which of the following markets is sometimes organized as an over-the-counter market?A) The stock marketB) The bond marketC) The foreign exchange marketD) The federal funds marketE) all of the above23) Bonds that are sold in a foreign country and are denominated in that country's currency are known asA) foreign bonds.B) Eurobonds.C) Eurocurrencies.D) Eurodollars.24) Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which they are sold are known asA) foreign bonds.B) Eurobonds.C) Eurocurrencies.D) Eurodollars.25) Financial intermediariesA) exist because there are substantial information and transaction costs in the economy.B) improve the lot of the small saver.C) are involved in the process of indirect finance.D) do all of the above.E) do only A and B of the above.26) The main sources of financing for businesses, in order of importance, areA) financial intermediaries, issuing bonds, issuing stocks.B) issuing bonds, issuing stocks, financial intermediaries.C) issuing stocks, issuing bonds, financial intermediaries.D) issuing stocks, financial intermediaries, issuing bonds.27) The presence of transaction costs in financial markets explains, in part, whyA) financial intermediaries and indirect finance play such an important role in financial markets.B) equity and bond financing play such an important role in financial markets.C) corporations get more funds through equity financing than they get from financial intermediaries.D) direct financing is more important than indirect financing as a source of funds.28) Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage ofA) poorly informed consumers.B) standardization.C) economies of scale.D) their market power.29) The purpose of diversification is toA) reduce the volatility of a portfolio's return.B) raise the volatility of a portfolio's return.C) reduce the average return on a portfolio.D) raise the average return on a portfolio.30) An investor who puts all her funds into one asset _________ her portfolio's _________.A) increases; diversificationB) decreases; diversificationC) increases; average returnD) decreases; average return31) Through risk-sharing activities, a financial intermediary _________ its own risk and _________ the risks of its customers.A) reduces; increasesB) increases; reducesC) reduces; reducesD) increases; increases32) The presence of _________ in financial markets leads to adverse selection and moral hazardproblems that interfere with the efficient functioning of financial markets.A) noncollateralized riskB) free-ridingC) asymmetric informationD) costly state verification33) When the lender and the borrower have different amounts of information regarding a transaction, _________ is said to exist.A) asymmetric informationB) adverse selectionC) moral hazardD) fraud34) When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _________ is said to exist.A) asymmetric informationB) adverse selectionC) moral hazardD) fraud35) When the borrower engages in activities that make it less likely that the loan will be repaid, _________ is said to exist.A) asymmetric informationB) adverse selectionC) moral hazardD) fraud36) The concept of adverse selection helps to explainA) which firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets.B) why indirect finance is more important than direct finance as a source of business finance.C) why direct finance is more important than indirect finance as a source of business finance.D) only A and B of the above.E) only A and C of the above.37) Adverse selection is a problem associated with equity and debt contracts arising fromA) the lender's relative lack of information about the borrower's potential returns and risks of his investment activities.B) the lender's inability to legally require sufficient collateral to cover a 100 percent loss if the borrower defaults.C) the borrower's lack of incentive to seek a loan for highly risky investments.D) none of the above.38) When the least desirable credit risks are the ones most likely to seek loans, lenders are subjectto theA) moral hazard problem.B) adverse selection problem.C) shirking problem.D) free-rider problem.E) principal-agent problem.39) Financial institutions expect thatA) moral hazard will occur, as the least desirable credit risks will be the ones most likely to seek out loans.B) opportunistic behavior will occur, as the least desirable credit risks will be the ones most likely to seek out loans.C) borrowers will commit moral hazard by taking on too much risk, and this is what drives financial institutions to take steps to limit moral hazard.D) none of the above will occur.40) Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks, thereby reducing losses due toA) moral hazard.B) adverse selection.C) bad luck.D) financial panics.41) In financial markets, lenders typically have inferior information about potential returns and risks associated with any investment project. This difference in information is calledA) comparative informational disadvantage.B) asymmetric information.C) variant information.D) caveat venditor.42) The largest depository institution at the end of 2004 wasA) life insurance companies.B) pension funds.C) state retirement funds.D) none of the above.43) Which of the following financial intermediaries are depository institutions?A) A savings and loan associationB) A commercial bankC) A credit unionD) All of the aboveE) Only A and C of the above44) Which of the following is a contractual savings institution?A) A life insurance companyB) A credit unionC) A savings and loan associationD) A mutual fund45) Which of the following are not investment intermediaries?A) A life insurance companyB) A pension fundC) A mutual fundD) Only A and B of the above46) Which of the following are investment intermediaries?A) Finance companiesB) Mutual fundsC) Pension fundsD) All of the aboveE) Only A and B of the above47) The government regulates financial markets for three main reasons:A) to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors.B) to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors.C) to ensure that financial intermediaries do not earn more than the normal rate of return, to ensure soundness of the financial system, and to improve control of monetary policy.D) to ensure soundness of financial intermediaries, to increase the information available to investors, and to prevent financial intermediaries from earning less than the normal rate of return.48) Which of the following government regulations has the chief purpose of improving control of the money supply?A) deposit insuranceB) restrictions on entry into banking or insuranceC) reserve requirementsD) restrictions on the assets financial intermediaries can hold49) Asymmetric information can lead to widespread collapse of financial intermediaries, referred to as aA) bank holiday.B) financial panic.C) financial disintermediation.D) financial collapse.50) Foreign currencies that are deposited in banks outside the home country are known asA) foreign bonds.B) Eurobond.C) Eurocurrencies.D) Eurodollars.51) U.S. dollars deposited in foreign banks outside the United States or in foreign branches of U.S. are referred to asA) Eurodollars.B) Eurocurrencies.C) Eurobonds.D) foreign bonds.52) Banks providing depositors with checking accounts that enable them to pay their bills easily is known asA) liquidity services.B) asset transformation.C) risk sharing.D) transaction costs.53) A ________ is when one party in a financial contract has incentives to act in its own interest rather than in the interests of the other party.A) moral hazardB) riskC) conflict of interestD) financial panic54) Fire and casualty insurance companies are what type of intermediary?A) Contractual savings institutionB) Depository institutionsC) Investment intermediariesD) None of the above55) The country whose banks are the most restricted in the range of assets they may hold isA) Japan.B) Canada.C) Germany.D) the United States.答案:1-5:DAEBE 6-10:DECDD 11-15:CCEEB 16-20:CDADC 21-25:BEABD 26-30:AACAB 31-35:BCABC 36-40:DABCB 41-45:BDDAD 46-50:EACBC 51-55:AACAD。
货币金融学(第十二版)英文版题库及答案Web chapter 2

Economics of Money, Banking, and Financial Markets, 12e (Mishkin)Chapter 27 Web Chapter 2: The ISLM Model27.1 Keynes's Fixed Price Level Assumption and the IS Curve1) Because inflation was not a serious problem during the Great Depression, Keynes's analysis assumedA) that unemployment also was not a problem.B) that the money supply was fixed.C) that the price level was fixed.D) that monetary policy is not effective.Answer: CQues Status: Previous EditionAACSB: Reflective Thinking2) The money market is in equilibriumA) at any point on the IS curve.B) at any point on the LM curve.C) at only one point on the LM curve.D) only at the intersection of the IS and LM curves.Answer: BQues Status: Previous EditionAACSB: Reflective Thinking3) The ________ describes the combinations of interest rates and aggregate output for which the quantity of money demanded equals the quantity of money supplied.A) IS curveB) LM curveC) consumption functionD) investment scheduleAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking4) In the Keynesian model the quantity of money demanded is ________ related to income and ________ related to the interest rate.A) positively; positivelyB) positively; negativelyC) negatively; negativelyD) negatively; positivelyAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking5) According to the liquidity preference theory, the demand for money is ________ related to aggregate output and ________ related to interest rates.A) negatively; negativelyB) negatively; positivelyC) positively; negativelyD) positively; positivelyAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking6) As interest rates rise, the opportunity cost of holding money ________ and the demand for money ________.A) rises; risesB) rises; fallsC) falls; risesD) falls; fallsAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking7) As aggregate output rises, the demand for money ________ and the interest rate ________, so that money demanded equals money supplied and the money market is in equilibrium.A) increases; risesB) increases; fallsC) decreases; risesD) decreases; fallsAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking8) Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess ________ of money which will cause the interest rate to ________.A) supply; fallB) supply; riseC) demand; fallD) demand; riseAnswer: DQues Status: Previous EditionAACSB: Analytical Thinkingan excess ________ of money which will cause the interest rate to ________.A) supply; fallB) supply; riseC) demand; fallD) demand; riseAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking10) Everything else held constant, if aggregate output is to the ________ of the LM curve, then there is an excess supply of money which will cause the interest rate to ________.A) right; fallB) right; riseC) left; fallD) left; riseAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking11) Everything else held constant, if aggregate output is to the ________ of the LM curve, then there is an excess demand of money which will cause the interest rate to ________.A) right; fallB) right; riseC) left; fallD) left; riseAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking12) Everything else held constant, if aggregate output is to the ________ of the LM curve, then there is an excess ________ of money which will cause the interest rate to fall.A) right; supplyB) right; demandC) left; supplyD) left; demandAnswer: CQues Status: Previous EditionAACSB: Analytical Thinkingthere is an excess ________ of money which will cause the interest rate to rise.A) right; supplyB) right; demandC) left; supplyD) left; demandAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking27.2 ISLM Approach to Aggregate Output and Interest Rates1) Macroeconomic equilibrium requiresA) equilibrium in the goods market.B) equilibrium in the money market.C) equilibrium in both the goods and money markets.D) equilibrium in neither the goods nor the money market.Answer: CQues Status: Previous EditionAACSB: Reflective Thinking2) When the IS and LM curves are combined in the same diagram, the intersection of the two curves determines the equilibrium level of ________ as well as the ________.A) aggregate output; price levelB) aggregate output; interest rateC) money supply; price levelD) consumer expenditures; interest rateAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking3) If the economy is on the LM curve, but is to the right of the IS curve, aggregate output will ________ and the interest rate will ________.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: DQues Status: Previous EditionAACSB: Analytical Thinking________ and the interest rate will ________.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking5) If the economy is on the IS curve, but is to the left of the LM curve, aggregate output will________ and the interest rate will ________.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking6) If the economy is on the IS curve, but is to the right of the LM curve, aggregate output will________ and the interest rate will ________.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking7) If the economy is on the IS curve, but is to the left of the LM curve, then the ________ market is in equilibrium, but the interest rate is ________ the equilibrium level.A) goods; belowB) goods; aboveC) money; belowD) money; aboveAnswer: BQues Status: Previous EditionAACSB: Analytical Thinkingmarket is in equilibrium, but aggregate ________ exceeds aggregate ________.A) goods; output; demandB) goods; demand; outputC) money; output; demandD) money; demand; outputAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking27.3 Factors That Cause the LM Curve to Shift1) An increase in the money supply, other things equal, shifts the ________ curve to the________.A) IS; rightB) IS; leftC) LM; leftD) LM; rightAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking2) If the Federal Reserve conducts open market purchases, the money supply ________, shifting the LM curve to the ________, everything else held constant.A) decreases; rightB) decreases; leftC) increases; rightD) increases; leftAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking3) If the Federal Reserve conducts open market sales, the money supply ________, shifting the LM curve to the ________, everything else held constant.A) decreases; rightB) decreases; leftC) increases; rightD) increases; leftAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking4) If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the right, everything else held constant.A) purchases; decreasesB) sales; decreasesC) purchases; increasesD) sales; increasesAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking5) If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the left, everything else held constant.A) purchases; decreasesB) sales; decreasesC) purchases; increasesD) sales; increasesAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking6) An increase in the quantity of money supplied shifts the money supply curve to the ________, and the equilibrium interest rate ________, everything else held constant.A) right; fallsB) right; risesC) left; fallsD) left; risesAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking7) A decrease in the quantity of money supplied shifts the money supply curve to the ________, and the equilibrium interest rate ________, everything else held constant.A) right; fallsB) right; risesC) left; fallsD) left; risesAnswer: DQues Status: Previous EditionAACSB: Analytical Thinking8) An increase in the quantity of money supplied shifts the money supply curve to the ________ and the LM curve to the ________, everything else held constant.A) right; leftB) right; rightC) left; leftD) left; rightAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking9) A decrease in the quantity of money supplied shifts the money supply curve to the ________, and the LM curve to the ________, everything else held constant.A) right; leftB) right; rightC) left; leftD) left; rightAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking10) A decline in the money ________ shifts the LM curve to the ________, causing the interest rate to rise and output to fall, everything else held constant.A) demand; rightB) demand; leftC) supply; rightD) supply; leftAnswer: DQues Status: Previous EditionAACSB: Analytical Thinking11) A decline in the money supply shifts the LM curve to the left, causing the interest rate to________ and output to ________, everything else held constant.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking12) An increase in the money ________ shifts the LM curve to the ________, causing the interest rate to fall and output to rise, everything else held constant.A) demand; rightB) demand; leftC) supply; rightD) supply; leftAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking13) An increase in the money supply shifts the LM curve to the right, causing the interest rate to ________ and output to ________, everything else held constant.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking14) When the central bank ________ the money supply, the LM curve shifts to the right, interest rates ________, and equilibrium aggregate output ________, everything else held constant.A) increases; fall; increasesB) increases; rise; decreasesC) decreases; rise; decreasesD) decreases; fall; increasesAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking15) An autonomous decrease in money demand, other things equal, shifts the ________ curve to the ________.A) IS; rightB) IS; leftC) LM; leftD) LM; rightAnswer: DQues Status: Previous EditionAACSB: Analytical Thinking16) An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.A) IS; rightB) IS; leftC) LM; leftD) LM; rightAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking17) As bonds become a riskier asset, the demand for money ________ and, all else constant, the equilibrium interest rate ________.A) rises; risesB) rises; fallsC) falls; risesD) falls; fallsAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking18) An autonomous rise in ________ shifts the LM curve to the ________, everything else held constant.A) net exports; rightB) net exports; leftC) money demand; rightD) money demand; leftAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking27.4 Changes in Equilibrium Level of the Interest Rate and Aggregate Output1) In the ISLM framework, an expansionary monetary policy causes aggregate output to________ and the interest rate to ________, everything else held constant.A) increase; increaseB) increase; decreaseC) decrease; decreaseD) decrease; increaseAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking2) An expansionary monetary policy shifts the LM curve to the ________, reducing ________, everything else held constant.A) left; output and increasing interest ratesB) left; both real output and interest ratesC) right; both interest rates and real outputD) right; interest rates and increasing real outputAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking3) Everything else held constant, a monetary expansion is characterized by ________ output and ________ interest rates.A) rising; risingB) rising; fallingC) falling; risingD) falling; fallingAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking4) A contractionary monetary policy shifts the LM curve to the ________, reducing ________, everything else held constant.A) left; output and increasing interest ratesB) left; both real output and interest ratesC) right; both interest rates and real outputD) right; interest rates and increasing real outputAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking5) Everything else held constant, a monetary contraction is characterized by ________ output and ________ interest rates.A) rising; risingB) rising; fallingC) falling; risingD) falling; fallingAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking6) In the money market, a condition of excess demand for money can be eliminated by a________ in aggregate output or a ________ in the interest rate, everything else held constant.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking7) In the money market, a condition of excess supply of money can be eliminated by a ________ in aggregate output or a ________ in the interest rate, everything else held constant.A) rise; riseB) rise; fallC) fall; riseD) fall; fallAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking8) In the ISLM framework, an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant.A) increase; increaseB) increase; decreaseC) decrease; decreaseD) decrease; increaseAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking9) In the ISLM framework a contractionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant.A) increase; increaseB) increase; decreaseC) decrease; decreaseD) decrease; increaseAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking10) Everything else held constant, an expansionary ________ policy will cause the interest rate to rise, while an expansionary ________ policy will cause the interest rate to fall.A) monetary; monetaryB) monetary; fiscalC) fiscal; monetaryD) fiscal; fiscalAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking11) Aggregate output and the interest rate are ________ related to government spending and are ________ related to taxes.A) positively; positivelyB) positively; negativelyC) negatively; positivelyD) negatively; negativelyAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking12) An increase in spending that results from expansionary ________ policy causes the interest rate to ________, everything else held constant.A) fiscal; riseB) fiscal; fallC) incomes; riseD) incomes; fallAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking13) Despite an expansionary monetary policy, an economy experiences a recession. Everything else held constant, the recession could occur in spite of the rightward shift of the LM curve ifA) consumer confidence decreases sharply.B) there is an investment boom.C) the money supply increases.D) taxes are cut.Answer: AQues Status: Previous EditionAACSB: Reflective Thinking14) If an economy experiences high interest rates and high unemployment, the ISLM framework predicts that ________ policy has been too ________.A) fiscal; expansionaryB) fiscal; contractionaryC) monetary; expansionaryD) monetary; contractionaryAnswer: DQues Status: Previous EditionAACSB: Analytical Thinking15) Which of the following statements concerning Keynesian ISLM analysis is TRUE?A) For a given change in taxes, the IS curve will shift less than for an equal change in government spending.B) Changes in net exports arising from a change in interest rates causes a shift in the IS curve.C) A fall in the money supply shifts the LM curve to the right.D) Expansionary fiscal policy will cause the interest rate to fall.Answer: AQues Status: Previous EditionAACSB: Reflective Thinking16) Referring to the Economic Stimulus Act of 2008, the expansionary effect of the government stimulus was overwhelmed by the continuing deterioration in credit market conditions. Everything else held constant and using the ISLM model, the net effect would cause the________ curve to ________ and output will ________.A) IS; shift left; decreaseB) IS; shift right; increaseC) LM; shift right; increaseD) LM; shift left; decreaseAnswer: AQues Status: Previous EditionAACSB: Analytical Thinking17) Using the ISLM model, explain the effects of a monetary expansion combined with a fiscal contraction. How do the equilibrium level of output and interest rate change?Answer: The monetary expansion shifts the LM curve to the right which by itself would cause the interest rate to decrease and aggregate output to increase. The fiscal contraction shifts the IS curve to the left which by itself would cause the interest rate to decrease and aggregate output to decrease. Therefore, the equilibrium interest rate unambiguously falls, while the effect on output is indeterminate.Ques Status: Previous EditionAACSB: Reflective Thinking18) Using the ISLM model, show graphically and explain the effects of a monetary contraction. What is the effect on the equilibrium interest rate and level of output?Answer: See figure below.The monetary contraction shifts the LM curve to the left. The result is that the equilibrium level of output falls and the equilibrium interest rate increases.Ques Status: Previous EditionAACSB: Reflective Thinking27.5 Effectiveness Of Monetary Versus Fiscal Policy1) If the quantity of money demanded is not affected by changes in the interest rate, the LM curve is ________ and fiscal policy will be ________.A) horizontal; very effectiveB) horizontal; ineffectiveC) vertical; ineffectiveD) vertical; very effectiveAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking2) The LM curve will be vertical and fiscal policy ineffective whenA) the demand for money is unaffected by changes in the interest rate.B) the demand for money is unaffected by changes in income.C) investment is unaffected by changes in the interest rate.D) investment is unaffected by changes in income.Answer: AQues Status: Previous EditionAACSB: Reflective Thinking3) The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to asA) fiscal neutrality.B) a recession.C) complete crowding out.D) inflation.Answer: CQues Status: Previous EditionAACSB: Reflective Thinking4) Crowding out will be more pronounced the closer to vertical is theA) IS curve.B) LM curve.C) consumption function.D) aggregate demand function.Answer: BQues Status: Previous EditionAACSB: Reflective Thinking5) The less interest-sensitive is money demand, theA) more effective is fiscal policy relative to monetary policy.B) more effective is monetary policy relative to fiscal policy.C) steeper is the IS curve.D) flatter is the LM curve.Answer: BQues Status: Previous EditionAACSB: Reflective Thinking6) The more interest-sensitive is money demand, theA) more effective is fiscal policy relative to monetary policy.B) more effective is monetary policy relative to fiscal policy.C) steeper is the IS curve.D) steeper is the LM curve.Answer: AQues Status: Previous EditionAACSB: Reflective Thinking7) If the economy is characterized by a certain and stable LM curve, then ________ target produces ________ fluctuations in aggregate output.A) an interest rate; smallerB) a money supply; smallerC) a money supply; largerD) an exchange rate; largerAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking8) If the economy is characterized by a stable IS curve and an unstable LM curve, then ________ target produces ________ fluctuations in aggregate output.A) an interest rate; largerB) a money supply; smallerC) a money supply; largerD) an exchange rate; smallerAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking9) If the ________ curve is relatively more unstable than the ________ curve, a money supply target is preferred.A) IS; ISB) IS; LMC) LM; ISD) LM; LMAnswer: BQues Status: Previous EditionAACSB: Reflective Thinking10) If the ________ curve is relatively more unstable than the ________ curve, an interest rate target is preferred.A) IS; ISB) IS; LMC) LM; ISD) LM; LMAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking11) If the Fed adopts a policy of pegging the interest rate, a ________ in government spending forces the Fed to increase the money supply to prevent interest rates from ________.A) fall; increasingB) fall; decreasingC) rise; decreasingD) rise; increasingAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking12) Using the ISLM model, explain and show graphically the effect of a fiscal expansion when the demand for money is completely insensitive to changes in the interest rate. What is this effect called?Answer: See figure below.This is the total crowding out effect. The LM curve is vertical, so any shift of the IS curve affects only interest rates. The level of output is constant. The fiscal expansion shifts the IS curve rightward, increasing the interest rate.Ques Status: Previous EditionAACSB: Reflective Thinking13) Show graphically and explain why targeting an interest rate is preferable when money demand is unstable and the IS curve is stable.Answer: See figure below.Unstable money demand causes the LM curve to shift between LM' and LM". If the money supply is targeted, output fluctuates between Y' and Y". With an interest rate target, output remains stable at Y. Since the objective is to minimize output fluctuations, targeting the interest rate is preferable.Ques Status: Previous EditionAACSB: Reflective Thinking27.6 ISLM Model In The Long Run1) The rate of output at which the price level has no tendency to rise or fall is called theA) natural rate of output.B) potential level of income.C) bliss point.D) efficient level of output.Answer: AQues Status: Previous EditionAACSB: Reflective Thinking2) In the long-run ISLM model and with everything else held constant, as long as the level of output ________ the natural rate level, the price level will continue to ________, shifting the LM curve to the ________, until finally output is back at the natural rate level.A) exceeds; rise; rightB) exceeds; rise; leftC) remains below; fall; leftD) remains below; rise; rightAnswer: BQues Status: Previous EditionAACSB: Analytical Thinking3) In the long-run ISLM model and with everything else held constant, as long as the level of output ________ the natural rate level, the price level will continue to ________, shifting the LM curve to the ________, until finally output is back at the natural rate level.A) exceeds; rise; rightB) exceeds; fall; leftC) remains below; fall; rightD) remains below; rise; leftAnswer: CQues Status: Previous EditionAACSB: Analytical Thinking4) In the long-run ISLM model and with everything else held constant, an increase in the money supply leaves the level of output and interest rates unchanged, an outcome calledA) interest rate overshooting.B) long-run money neutrality.C) long-run crowding out.D) the long-run Phillips curve.Answer: BQues Status: Previous EditionAACSB: Reflective Thinkingexpansionary monetary policy is toA) increase real output and the interest rate.B) not change either real output or the interest rate.C) increase real output and leave the interest rate unchanged.D) increase the interest rate and leave real output unchanged.Answer: BQues Status: Previous EditionAACSB: Reflective Thinking6) The long-run neutrality of money refers to the fact that in the long run, monetary policyA) changes only real output.B) changes only the real interest rate.C) changes both real output and the real interest rate.D) has no effect on either real output or the real interest rate.Answer: DQues Status: Previous EditionAACSB: Reflective Thinking7) In the long-run ISLM model and with everything else held constant, the long-run effect of an expansionary fiscal policy is to ________ real output and ________ the interest rate.A) increase; increaseB) not change; not changeC) increase; not changeD) not change; increaseAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking8) In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate.A) not change; not changeB) decrease; decreaseC) decrease; not changeD) not change; decreaseAnswer: DQues Status: Previous EditionAACSB: Reflective Thinkingcut in government spending is to ________ real output and ________ the interest rate.A) increase; increaseB) increase; not changeC) not change; increaseD) not change; decreaseAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking10) In the long-run ISLM model and with everything else held constant, the long-run effect of a tax cut is to ________ real output and ________ the interest rate.A) increase; increaseB) increase; not changeC) not change; increaseD) not change; decreaseAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking11) In the long-run ISLM model and with everything else held constant, the long-run effect of an autonomous increase in investment is to ________ real output and ________ the interest rate.A) increase; increaseB) increase; not changeC) not change; increaseD) not change; decreaseAnswer: CQues Status: Previous EditionAACSB: Reflective Thinking12) In the long-run ISLM model and with everything else held constant, the long-run effect of a fall in net exports is to ________ real output and ________ the interest rate.A) increase; increaseB) increase; not changeC) not change; increaseD) not change; decreaseAnswer: DQues Status: Previous EditionAACSB: Reflective Thinking。
货币金融学课后答案解析米什金(2)

货币金融学课后答案解析米什金(2)货币金融学课后答案1、假如我今天以5000美元购买一辆汽车,明年我就可以赚取10000额外收入,因为拥有了这辆车,我就可以成为推销员。
假如没有人愿意贷款给我,我是否应该从放高利贷者拉利处以90%的利率贷款呢?你能否列出高利贷合法的依据?我应该去找高利贷款,因为这样做的结果会更好。
我支付的利息是4500(90%×5000),但实际上,我赚了10000美元,所以我最后赚得了5500美元。
因为拉利的高利贷会使一些人的结果更好,所以高利贷会产生一些社会效益。
(一个反对高利贷的观点认为它常常会造成一种暴利活动)。
2、“在没有信息和交易成本的世界里,不会有金融中介机构的存在。
”这种说法是正确的、错误的还是不确定?说明你的理由。
正确。
如果没有信息和交易成本,人们相互贷款将无成本无代价进行交易,因此金融机构就没有存在的必要了。
3、风险分担是如何让金融中介机构和私人投资都从中获益的?风险分担是指金融中介机构所设计和提供的资产品种的风险在投资者所承认的范围之内,之后,金融中介机构将销售这些资产所获取的资产去购买风险大得多的资产。
低交易成本允许金融中介机构以较低的成本进行风险分担,使得它们能够获取风险资产的收益与出售资产的成本间的差额,这也是金融中介机构的利润。
对投资者而言,金融资产被转化为安全性更高的资产,减少了其面临的风险。
4、在美国,货币是否在20世纪50年代比70年代能更好地发挥价值储藏的功能?为什么?在哪一个时期你更愿意持有货币?在美国,货币作为一种价值储藏手段,在20世纪50年代比70年代好。
因为50年代比70年代通货膨胀率更低,货币贬值的贬值程度也较低。
货币作为价值储藏手段的优劣取决于物价水平,因为货币价值依赖于价格水平。
在通货膨胀时期,物价水平迅速上升,货币也急速贬值,人们也就不愿意以这种形式来持有财富。
因此,人们在物价水平比较稳定的时期更愿意持有货币。
5、为什么有些经济学家将恶性通货膨胀期间的货币称做“烫手的山芋”,在人们手中快速传递?在恶性通货膨胀期间,货币贬值速度非常快,所以人们希望持有货币的时间越短越好,因此此时的货币就像一个烫手的山芋快速的从一个人手里传到另一个人手里。
货币金融学chapter 英文习题

Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 4 The Meaning of Interest Rates4、1 Measuring Interest Rates1) The concept of ________ is based on the mon-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today、A) present valueB) future valueC) interestD) deflationAnswer: AAACSB: Application of Knowledge2) The present value of an expected future payment ________ as the interest rate increases、A) fallsB) risesC) is constantD) is unaffectedAnswer: AAACSB: Reflective Thinking3) An increase in the time to the promised future payment ________ the present value of the payment、A) decreasesB) increasesC) has no effect onD) is irrelevant toAnswer: AAACSB: Reflective Thinking4) With an interest rate of 6 percent, the present value of $100 next year is approximatelyA) $106、B) $100、C) $94、D) $92、Answer: CAACSB: Analytical Thinking5) What is the present value of $500、00 to be paid in two years if the interest rate is 5 percent?A) $453、51B) $500、00C) $476、25D) $550、00Answer: AAACSB: Analytical Thinking6) If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate isA) 5 percent、B) 10 percent、C) 12、5 percent、D) 15 percent、Answer: BAACSB: Analytical Thinking7) To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process ofA) face value、B) par value、C) deflation、D) discounting the future、Answer: DAACSB: Analytical Thinking8) A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: AAACSB: Application of Knowledge9) A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: BAACSB: Application of Knowledge10) Which of the following are TRUE of fixed payment loans?A) The borrower repays both the principal and interest at the maturity date、B) Installment loans and mortgages are frequently of the fixed payment type、C) The borrower pays interest periodically and the principal at the maturity date、D) mercial loans to businesses are often of this type、Answer: BAACSB: Reflective Thinking11) A fully amortized loan is another name forA) a simple loan、B) a fixed-payment loan、C) a mercial loan、D) an unsecured loan、Answer: BAACSB: Application of Knowledge12) A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: CAACSB: Application of Knowledge13) A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid、A) coupon bond; discountB) discount bond; discountC) coupon bond; faceD) discount bond; faceAnswer: CAACSB: Analytical Thinking14) The ________ is the final amount that will be paid to the holder of a coupon bond、A) discount valueB) coupon valueC) face valueD) present valueAnswer: CAACSB: Application of Knowledge15) When talking about a coupon bond, face value and ________ mean the same thing、A) par valueB) coupon valueC) amortized valueD) discount valueAnswer: AAACSB: Application of Knowledge16) The dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond is called the bond'sA) coupon rate、B) maturity rate、C) face value rate、D) payment rate、Answer: AAACSB: Application of Knowledge17) The ________ is calculated by multiplying the coupon rate times the par value of the bond、A) present valueB) face valueC) coupon paymentD) maturity paymentAnswer: CAACSB: Analytical Thinking18) If a $1000 face value coupon bond has a coupon rate of 3、75 percent, then the coupon payment every year isA) $37、50、B) $3、75、C) $375、00、D) $13、75Answer: AAACSB: Analytical Thinking19) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year isA) $650、B) $1,300、C) $130、D) $13、Answer: AAACSB: Analytical Thinking20) An $8,000 coupon bond with a $400 coupon payment every year has a coupon rate ofA) 5 percent、B) 8 percent、C) 10 percent、D) 40 percent、Answer: AAACSB: Analytical Thinking21) A $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate ofA) 、6 percent、B) 5 percent、C) 6 percent、D) 10 percent、Answer: CAACSB: Analytical Thinking22) All of the following are examples of coupon bonds EXCEPTA) corporate bonds、B) U、S、Treasury bills、C) U、S、Treasury notes、D) U、S、Treasury bonds、Answer: BAACSB: Analytical Thinking23) A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called aA) simple loan、B) fixed-payment loan、C) coupon bond、D) discount bond、Answer: DAACSB: Application of Knowledge24) A ________ is bought at a price below its face value, and the ________ value is repaid at the maturity date、A) coupon bond; discountB) discount bond; discountC) coupon bond; faceD) discount bond; faceAnswer: DAACSB: Analytical Thinking25) A discount bondA) pays the bondholder a fixed amount every period and the face value at maturity、B) pays the bondholder the face value at maturity、C) pays all interest and the face value at maturity、D) pays the face value at maturity plus any capital gain、Answer: BAACSB: Reflective Thinking26) Examples of discount bonds includeA) U、S、Treasury bills、B) corporate bonds、C) U、S、Treasury notes、D) municipal bonds、Answer: AAACSB: Analytical Thinking27) Which of the following are TRUE for discount bonds?A) A discount bond is bought at par、B) The purchaser receives the face value of the bond at the maturity date、C) U、S、Treasury bonds and notes are examples of discount bonds、D) The purchaser receives the par value at maturity plus any capital gains、Answer: BAACSB: Reflective Thinking28) The interest rate that equates the present value of payments received from a debt instrument with its value today is theA) simple interest rate、B) current yield、C) yield to maturity、D) real interest rate、Answer: CAACSB: Application of Knowledge29) Economists consider the ________ to be the most accurate measure of interest rates、A) simple interest rate、B) current yield、C) yield to maturity、D) real interest rate、Answer: CAACSB: Reflective Thinking30) For simple loans, the simple interest rate is ________ the yield to maturity、A) greater thanB) less thanC) equal toD) not parable toAnswer: CAACSB: Application of Knowledge31) If the amount payable in two years is $2420 for a simple loan at 10 percent interest, the loan amount isA) $1000、B) $1210、C) $2000、D) $2200、Answer: CAACSB: Analytical Thinking32) For a 3-year simple loan of $10,000 at 10 percent, the amount to be repaid isA) $10,030、B) $10,300、C) $13,000、D) $13,310、Answer: DAACSB: Analytical Thinking33) If $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate isA) 5 percent、B) 10 percent、C) 22 percent、D) 25 percent、Answer: AAACSB: Analytical Thinking34) If a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200?A) 9 percentB) 10 percentC) 11 percentD) 12 percentAnswer: BAACSB: Analytical Thinking35) The present value of a fixed-payment loan is calculated as the ________ of the present value of all cash flow payments、A) sumB) differenceC) multipleD) logAnswer: AAACSB: Analytical Thinking36) Which of the following are TRUE for a coupon bond?A) When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate、B) The price of a coupon bond and the yield to maturity are positively related、C) The yield to maturity is greater than the coupon rate when the bond price is above the par value、D) The yield is less than the coupon rate when the bond price is below the par value、Answer: AAACSB: Reflective Thinking37) The ________ of a coupon bond and the yield to maturity are inversely related、A) priceB) par valueC) maturity dateD) termAnswer: AAACSB: Reflective Thinking38) The price of a coupon bond and the yield to maturity are ________ related; that is, as the yield to maturity ________, the price of the bond ________、A) positively; rises; risesB) negatively; falls; fallsC) positively; rises; fallsD) negatively; rises; fallsAnswer: DAACSB: Reflective Thinking39) The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value、A) greater; coupon; aboveB) greater; coupon; belowC) greater; perpetuity; aboveD) less; perpetuity; belowAnswer: BAACSB: Reflective Thinking40) The ________ is below the coupon rate when the bond price is ________ its par value、A) yield to maturity; aboveB) yield to maturity; belowC) discount rate; aboveD) discount rate; belowAnswer: AAACSB: Reflective Thinking41) A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity ofA) 8 percent、B) 10 percent、C) 12 percent、D) 14 percent、Answer: AAACSB: Analytical Thinking42) Which of the following $1,000 face-value securities has the highest yield to maturity?A) a 5 percent coupon bond selling for $1,000B) a 10 percent coupon bond selling for $1,000C) a 12 percent coupon bond selling for $1,000D) a 12 percent coupon bond selling for $1,100Answer: CAACSB: Analytical Thinking43) Which of the following $5,000 face-value securities has the highest yield to maturity?A) a 6 percent coupon bond selling for $5,000B) a 6 percent coupon bond selling for $5,500C) a 10 percent coupon bond selling for $5,000D) a 12 percent coupon bond selling for $4,500Answer: DAACSB: Analytical Thinking44) Which of the following $1,000 face-value securities has the highest yield to maturity?A) a 5 percent coupon bond with a price of $600B) a 5 percent coupon bond with a price of $800C) a 5 percent coupon bond with a price of $1,000D) a 5 percent coupon bond with a price of $1,200Answer: AAACSB: Analytical Thinking45) Which of the following $1,000 face-value securities has the lowest yield to maturity?A) a 5 percent coupon bond selling for $1,000B) a 10 percent coupon bond selling for $1,000C) a 15 percent coupon bond selling for $1,000D) a 15 percent coupon bond selling for $900Answer: AAACSB: Analytical Thinking46) Which of the following bonds would you prefer to be buying?A) a $10,000 face-value security with a 10 percent coupon selling for $9,000B) a $10,000 face-value security with a 7 percent coupon selling for $10,000C) a $10,000 face-value security with a 9 percent coupon selling for $10,000D) a $10,000 face-value security with a 10 percent coupon selling for $10,000 Answer: AAACSB: Analytical Thinking47) A coupon bond that has no maturity date and no repayment of principal is called aA) consol、B) cabinet、C) Treasury bill、D) Treasury note、Answer: AAACSB: Application of Knowledge48) The price of a consol equals the coupon paymentA) times the interest rate、B) plus the interest rate、C) minus the interest rate、D) divided by the interest rate、Answer: DAACSB: Analytical Thinking49) The interest rate on a consol equals theA) price times the coupon payment、B) price divided by the coupon payment、C) coupon payment plus the price、D) coupon payment divided by the price、Answer: DAACSB: Analytical Thinking50) A consol paying $20 annually when the interest rate is 5 percent has a price ofA) $100、B) $200、C) $400、D) $800、Answer: CAACSB: Analytical Thinking51) If a perpetuity has a price of $500 and an annual interest payment of $25, the interest rate isA) 2、5 percent、B) 5 percent、C) 7、5 percent、D) 10 percent、Answer: BAACSB: Analytical Thinking52) The yield to maturity for a perpetuity is a useful approximation for the yield to maturity on long-term coupon bonds、It is called the ________ when approximating the yield for a coupon bond、A) current yieldB) discount yieldC) future yieldD) star yieldAnswer: AAACSB: Reflective Thinking53) The yield to maturity for a one-year discount bond equals the increase in price over the year, divided by theA) initial price、B) face value、C) interest rate、D) coupon rate、Answer: AAACSB: Analytical Thinking54) If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity isA) 5 percent、B) 10 percent、C) 50 percent、D) 100 percent、Answer: DAACSB: Analytical Thinking55) If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity isA) 0 percent、B) 5 percent、C) 10 percent、D) 20 percent、Answer: AAACSB: Analytical Thinking56) A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield to maturity ofA) 3 percent、B) 20 percent、C) 25 percent、D) 33、3 percent、Answer: DAACSB: Analytical Thinking57) The yield to maturity for a discount bond is ________ related to the current bond price、A) negativelyB) positivelyC) notD) directlyAnswer: AAACSB: Reflective Thinking58) A discount bond is also called a ________ because the owner does not receive periodic payments、A) zero-coupon bondB) municipal bondC) corporate bondD) consolAnswer: AAACSB: Application of Knowledge59) Another name for a consol is a ________ because it is a bond with no maturity date、The owner receives fixed coupon payments forever、A) perpetuityB) discount bondC) municipalityD) high-yield bondAnswer: AAACSB: Application of Knowledge60) If the interest rate is 5%, what is the present value of a security that pays you $1, 050 next year and $1,102、50 two years from now? If this security sold for $2200, is the yield to maturity greater or less than 5%? Why?Answer: PV = $1,050/(1、+、05) + $1,102、50/(1 + 0、5)2PV = $2,000If this security sold for $2200, the yield to maturity is less than 5%、The lower the interest rate the higher the present value、AACSB: Analytical Thinking4、2 The Distinction Between Interest Rates and Returns1) The ________ is defined as the payments to the owner plus the change in a security's value expressed as a fraction of the security's purchase price、A) yield to maturityB) current yieldC) rate of returnD) yield rateAnswer: CAACSB: Application of Knowledge2) Which of the following are TRUE concerning the distinction between interest rates and returns?A) The rate of return on a bond will not necessarily equal the interest rate on that bond、B) The return can be expressed as the difference between the current yield and the rate of capital gains、C) The rate of return will be greater than the interest rate when the price of the bond falls during the holding period、D) The return can be expressed as the sum of the discount yield and the rate of capital gains、Answer: AAACSB: Reflective Thinking3) The sum of the current yield and the rate of capital gain is called theA) rate of return、B) discount yield、C) perpetuity yield、D) par value、Answer: AAACSB: Analytical Thinking4) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 next year?A) 5 percentB) 10 percentC) -5 percentD) 25 percentAnswer: DAACSB: Analytical Thinking5) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year?A) 5 percentB) 10 percentC) -5 percentD) -10 percentAnswer: CAACSB: Analytical Thinking6) The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year isA) -10 percent、B) -5 percent、C) 0 percent、D) 5 percent、Answer: CAACSB: Analytical Thinking7) Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent、If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year, what is the yearly return on the bond you are holding?A) 5 percentB) 10 percentC) 15 percentD) 20 percentAnswer: CAACSB: Analytical Thinking8) I purchase a 10 percent coupon bond、Based on my purchase price, I calculate a yield to maturity of 8 percent、If I hold this bond to maturity, then my return on this asset isA) 10 percent、B) 8 percent、C) 12 percent、D) there is not enough information to determine the return、Answer: BAACSB: Analytical Thinking9) If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have been holding?A) a bond with one year to maturityB) a bond with five years to maturityC) a bond with ten years to maturityD) a bond with twenty years to maturityAnswer: AAACSB: Analytical Thinking10) An equal decrease in all bond interest ratesA) increases the price of a five-year bond more than the price of a ten-year bond、B) increases the price of a ten-year bond more than the price of a five-year bond、C) decreases the price of a five-year bond more than the price of a ten-year bond、D) decreases the price of a ten-year bond more than the price of a five-year bond、Answer: BAACSB: Analytical Thinking11) An equal increase in all bond interest ratesA) increases the return to all bond maturities by an equal amount、B) decreases the return to all bond maturities by an equal amount、C) has no effect on the returns to bonds、D) decreases long-term bond returns more than short-term bond returns、Answer: DAACSB: Analytical Thinking12) Which of the following are generally TRUE of bonds?A) A bond's return equals the yield to maturity when the time to maturity is the same as the holding period、B) A rise in interest rates is associated with a fall in bond prices, resulting in capital gains on bonds whose terms to maturity are longer than the holding periods、C) The longer a bond's maturity, the smaller is the size of the price change associated with an interest rate change、D) Prices and returns for short-term bonds are more volatile than those for longer-term bonds、Answer: AAACSB: Reflective Thinking13) Which of the following are generally TRUE of all bonds?A) The longer a bond's maturity, the greater is the rate of return that occurs as a result of the increase in the interest rate、B) Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise、C) Prices and returns for short-term bonds are more volatile than those for longer term bonds、D) A fall in interest rates results in capital losses for bonds whose terms to maturity are longer than the holding period、Answer: BAACSB: Reflective Thinking14) The riskiness of an asset's returns due to changes in interest rates isA) exchange-rate risk、B) price risk、C) asset risk、D) interest-rate risk、Answer: DAACSB: Application of Knowledge15) Interest-rate risk is the riskiness of an asset's returns due toA) interest-rate changes、B) changes in the coupon rate、C) default of the borrower、D) changes in the asset's maturity、Answer: AAACSB: Application of Knowledge16) Prices and returns for ________ bonds are more volatile than those for ________ bonds, everything else held constant、A) long-term; long-termB) long-term; short-termC) short-term; long-termD) short-term; short-termAnswer: BAACSB: Reflective Thinking7) There is ________ for any bond whose time to maturity matches the holding period、A) no interest-rate riskB) a large interest-rate riskC) rate-of-return riskD) yield-to-maturity riskAnswer: AAACSB: Analytical Thinking18) All bonds that will not be held to maturity have interest rate risk which occurs because of the change in the price of the bond as a result ofA) interest-rate changes、B) changes in the coupon rate、C) default of the borrower、D) changes in the asset's maturity date、Answer: AAACSB: Application of Knowledge19) Your favorite uncle advises you to purchase long-term bonds because their interest rate is 10%、Should you follow his advice?Answer: It depends on where you think interest rates are headed in the future、If you think interest rates will be going up, you should not follow your uncle's advice because you would then have to discount your bond if you needed to sell it before the maturity date、Long-term bonds have a greater interest-rate risk、AACSB: Reflective Thinking4、3 The Distinction Between Real and Nominal Interest Rates1) The ________ interest rate is adjusted for expected changes in the price level、A) ex ante realB) ex post realC) ex post nominalD) ex ante nominalAnswer: AAACSB: Application of Knowledge2) The ________ interest rate more accurately reflects the true cost of borrowing、A) nominalB) realC) discountD) marketAnswer: BAACSB: Analytical Thinking3) The nominal interest rate minus the expected rate of inflationA) defines the real interest rate、B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate、C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate、D) defines the discount rate、Answer: AAACSB: Analytical Thinking4) When the ________ interest rate is low, there are greater incentives to ________ and fewer incentives to ________、A) nominal; lend; borrowB) real; lend; borrowC) real; borrow; lendD) market; lend; borrowAnswer: CAACSB: Reflective Thinking5) The interest rate that describes how well a lender has done in real terms after the fact is called theA) ex post real interest rate、B) ex ante real interest rate、C) ex post nominal interest rate、D) ex ante nominal interest rate、Answer: AAACSB: Analytical Thinking6) The ________ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation、A) Fisher equationB) Keynesian equationC) Monetarist equationD) Marshall equationAnswer: AAACSB: Application of Knowledge7) If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent, the real rate of interest isA) 2 percent、B) 8 percent、C) 10 percent、D) 12 percent、Answer: DAACSB: Analytical Thinking8) In which of the following situations would you prefer to be the lender?A) The interest rate is 9 percent and the expected inflation rate is 7 percent、B) The interest rate is 4 percent and the expected inflation rate is 1 percent、C) The interest rate is 13 percent and the expected inflation rate is 15 percent、D) The interest rate is 25 percent and the expected inflation rate is 50 percent、Answer: BAACSB: Analytical Thinking9) In which of the following situations would you prefer to be the borrower?A) The interest rate is 9 percent and the expected inflation rate is 7 percent、B) The interest rate is 4 percent and the expected inflation rate is 1 percent、C) The interest rate is 13 percent and the expected inflation rate is 15 percent、D) The interest rate is 25 percent and the expected inflation rate is 50 percent、Answer: DAACSB: Analytical Thinking10) If you expect the inflation rate to be 15 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) 7 percent、B) 22 percent、C) -15 percent、D) -8 percent、Answer: DAACSB: Analytical Thinking11) If you expect the inflation rate to be 12 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) -5 percent、B) -2 percent、C) 2 percent、D) 12 percent、Answer: AAACSB: Analytical Thinking12) If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) -3 percent、B) -2 percent、C) 3 percent、D) 7 percent、Answer: CAACSB: Analytical Thinking13) In the United States during the late 1970s, the nominal interest rates were quite high, but the real interest rates were negative、From the Fisher equation, we can conclude that expected inflation in the United States during this period wasA) irrelevant、B) low、C) negative、D) high、Answer: DAACSB: Reflective Thinking14) The interest rate on Treasury Inflation Indexed Securities can be roughly interpreted asA) the real interest rate、B) the nominal interest rate、C) the rate of inflation、D) the rate of deflation、Answer: AAACSB: Analytical Thinking15) Assuming the same coupon rate and maturity length, the difference between the yield on a Treasury Inflation Indexed Security and the yield on a nonindexed Treasury security provides insight intoA) the nominal interest rate、B) the real interest rate、C) the nominal exchange rate、D) the expected inflation rate、Answer: DAACSB: Analytical Thinking16) Assuming the same coupon rate and maturity length, when the interest rate on a Treasury Inflation Indexed Security is 3 percent, and the yield on a nonindexed Treasury bond is 8 percent, the expected rate of inflation isA) 3 percent、B) 5 percent、C) 8 percent、D) 11 percent、Answer: BAACSB: Analytical Thinking17) Would it make sense to buy a house when mortgage rates are 14% and expected inflation is 15%? Explain your answer、Answer: Even though the nominal rate for the mortgage appears high, the real cost of borrowing the funds is -1%、Yes, under this circumstance it would be reasonable to make this purchase、AACSB: Reflective Thinking4、4 Web Appendix: Measuring Interest-Rate Risk: Duration1) Duration isA) an asset's term to maturity、B) the time until the next interest payment for a coupon bond、C) the average lifetime of a debt security's stream of payments、D) the time between interest payments for a coupon bond、Answer: CAACSB: Application of Knowledge2) paring a discount bond and a coupon bond with the same maturityA) the coupon bond has the greater effective maturity、B) the discount bond has the greater effective maturity、C) the effective maturity cannot be calculated for a coupon bond、D) the effective maturity cannot be calculated for a discount bond、Answer: BAACSB: Reflective Thinking3) The duration of a coupon bond increasesA) the longer is the bond's term to maturity、B) when interest rates increase、C) the higher the coupon rate on the bond、D) the higher the bond price、Answer: AAACSB: Reflective Thinking4) All else equal, when interest rates ________, the duration of a coupon bond ________、A) rise; fallsB) rise; increasesC) falls; fallsD) falls; does not changeAnswer: AAACSB: Reflective Thinking5) All else equal, the ________ the coupon rate on a bond, the ________ the bond's duration、A) higher; longerB) higher; shorterC) lower; shorterD) greater; longerAnswer: BAACSB: Reflective Thinking。
金融英语练习2答案

Answers for Part 2Section A1-5 C B B D A 6-10 C D D B D11-15 D C D B CSection B16. 储备银行必须将其权力用于维护健全有效的金融体系,避免一家注册银行的倒闭对金融体系造成的巨大伤害。
17. 我们监管银行因为我们知道存在一些与某个大银行或银行集团倒闭相关的外部因素。
单个的银行倒闭可能会引发其他的失败。
这是因为好的银行的存款者在看到一个信誉不好的银行倒闭时会提走他们在好银行的存款。
18. 在资本金没有恢复到最低要求前,银行不能给股东分红。
同时相关资产规模也不能扩张,而且如果一级资本低于3%,该银行的信用总量也不能扩张。
19. 委员会相信,对银行来说,运用必要的力量(或资源)来度量操作风险水平以及将它们并入银行全部资本充足率的评价中是非常重要的。
委员会建议针对其他风险发展一套明确的资本要求,并且正在研究使之付诸实践的方法和途径。
20. 资产质量评级反映与贷款及各种投资组合、其他不动产、其他资产、表外业务等相关的信用风险(包括现在和潜在的)状况。
21. 在对金融机构资产流动性进行评估时,应考虑如下因素:相对于资金需求而言,流动资产目前水平和未来渠道,机构规模、业务复杂程度和风险状况一定情况下的资金管理水平。
22. 非现场评价是基于如下方面的:交谈市场情况、现场检查、媒体的报道、国际评级机构、定期回馈、和内外部审计者谈话,收取审计报告、和银行管理当局谈话、国外监管者等。
23. 货币监理署(OCC)的监管理念包括评估风险和确保个体银行在问题损害其安全和稳健之前即采取纠正措施。
这种监管理念体现在OCC的风险监管规划里。
24. 德国人编造了一个新词---金融一体化(Allfinanz),意思是把银行业和保险业以及其他的零售服务业结合起来,但是他们的银行和保险商却在具体实施中落在了欧洲竞争对手的后面。
Section C25-30 C C B B A CSection D31-35 top most revenue bear sound36-40 ratios set due regarding fashionSection E41-45 D B C B B46-50 B C A D A。
金融保险-货币金融学 米什金 ch02 精品

– Investment Banks underwrite securities in primary market.
• The advantage of holding equities is that equity holders benefit directly from any increases in the corporation’sUS, the size of the debt market is often larger than the size of the equities market.
• Owing stock means you own a portion of the firm and thus have the right to vote on issues important to the firm and to elect its directors.
• The main disadvantage of owning a corporation’s equities rather than its debt is that an equity holder is a residual claimant; that is ,the corporation must pay all its debt holders before it pays its equity holders
– Equities
– Claims to share in the net income and the assets of a business.
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Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 2 An Overview of the Financial System2.1 Function of Financial Markets1) Every financial market has the following characteristic.A) It determines the level of interest rates.B) It allows common stock to be traded.C) It allows loans to be made.D) It channels funds from lenders-savers to borrowers-spenders.Answer: DAACSB: Reflective Thinking2) Financial markets have the basic function ofA) getting people with funds to lend together with people who want to borrow funds.B) assuring that the swings in the business cycle are less pronounced.C) assuring that governments need never resort to printing money.D) providing a risk-free repository of spending power.Answer: AAACSB: Reflective Thinking3) Financial markets improve economic welfare becauseA) they channel funds from investors to savers.B) they allow consumers to time their purchase better.C) they weed out inefficient firms.D) they eliminate the need for indirect finance.Answer: BAACSB: Reflective Thinking4) Well-functioning financial marketsA) cause inflation.B) eliminate the need for indirect finance.C) cause financial crises.D) allow the economy to operate more efficiently.Answer: DAACSB: Reflective Thinking5) A breakdown of financial markets can result inA) financial stability.B) rapid economic growth.C) political instability.D) stable prices.Answer: CAACSB: Reflective Thinking6) The principal lender-savers areA) governments.B) businesses.C) households.D) foreigners.Answer: CAACSB: Application of Knowledge7) Which of the following can be described as direct finance?A) You take out a mortgage from your local bank.B) You borrow $2500 from a friend.C) You buy shares of common stock in the secondary market.D) You buy shares in a mutual fund.Answer: BAACSB: Analytical Thinking8) Assume that you borrow $2000 at 10% annual interest to finance a new business project. For this loan to be profitable, the minimum amount this project must generate in annual earnings isA) $400.B) $201.C) $200.D) $199.Answer: BAACSB: Analytical Thinking9) You can borrow $5000 to finance a new business venture. This new venture will generate annual earnings of $251. The maximum interest rate that you would pay on the borrowed funds and still increase your income isA) 25%.B) 12.5%.C) 10%.D) 5%.Answer: DAACSB: Analytical Thinking10) Which of the following can be described as involving direct finance?A) A corporation issues new shares of stock.B) People buy shares in a mutual fund.C) A pension fund manager buys a short-term corporate security in the secondary market.D) An insurance company buys shares of common stock in the over-the-counter markets. Answer: AAACSB: Analytical Thinking11) Which of the following can be described as involving direct finance?A) A corporation takes out loans from a bank.B) People buy shares in a mutual fund.C) A corporation buys a short-term corporate security in a secondary market.D) People buy shares of common stock in the primary markets.Answer: DAACSB: Analytical Thinking12) Which of the following can be described as involving indirect finance?A) You make a loan to your neighbor.B) A corporation buys a share of common stock issued by another corporation in the primary market.C) You buy a U.S. Treasury bill from the U.S. Treasury at .D) You make a deposit at a bank.Answer: DAACSB: Analytical Thinking13) Which of the following can be described as involving indirect finance?A) You make a loan to your neighbor.B) You buy shares in a mutual fund.C) You buy a U.S. Treasury bill from the U.S. Treasury at Treasury .D) You purchase shares in an initial public offering by a corporation in the primary market. Answer: BAACSB: Analytical Thinking14) Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.A) assets; liabilitiesB) liabilities; assetsC) negotiable; nonnegotiableD) nonnegotiable; negotiableAnswer: AAACSB: Reflective Thinking15) With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets.A) activeB) determinedC) indirectD) directAnswer: DAACSB: Application of Knowledge16) With direct finance, funds are channeled through the financial market from the ________ directly to the ________.A) savers, spendersB) spenders, investorsC) borrowers, saversD) investors, saversAnswer: AAACSB: Reflective Thinking17) Distinguish between direct finance and indirect finance. Which of these is the most important source of funds for corporations in the United States?Answer: With direct finance, funds flow directly from the lender/saver to the borrower. With indirect finance, funds flow from the lender/saver to a financial intermediary who then channels the funds to the borrower/investor. Financial intermediaries (indirect finance) are the major source of funds for corporations in the U.S.AACSB: Reflective Thinking2.2 Structure of Financial Markets1) Which of the following statements about the characteristics of debt and equity is FALSE?A) They can both be long-term financial instruments.B) They can both be short-term financial instruments.C) They both involve a claim on the issuer's income.D) They both enable a corporation to raise funds.Answer: BAACSB: Reflective Thinking2) Which of the following statements about the characteristics of debt and equities is TRUE?A) They can both be long-term financial instruments.B) Bond holders are residual claimants.C) The income from bonds is typically more variable than that from equities.D) Bonds pay dividends.Answer: AAACSB: Reflective Thinking3) Which of the following statements about financial markets and securities is TRUE?A) A bond is a long-term security that promises to make periodic payments called dividends to the firm's residual claimants.B) A debt instrument is intermediate term if its maturity is less than one year.C) A debt instrument is intermediate term if its maturity is ten years or longer.D) The maturity of a debt instrument is the number of years (term) to that instrument's expiration date.Answer: DAACSB: Reflective Thinking4) Which of the following is an example of an intermediate-term debt?A) a fifteen-year mortgageB) a sixty-month car loanC) a six-month loan from a finance companyD) a thirty-year U.S. Treasury bondAnswer: BAACSB: Analytical Thinking5) If the maturity of a debt instrument is less than one year, the debt is calledA) short-term.B) intermediate-term.C) long-term.D) prima-term.Answer: AAACSB: Application of Knowledge6) Long-term debt has a maturity that isA) between one and ten years.B) less than a year.C) between five and ten years.D) ten years or longer.Answer: DAACSB: Application of Knowledge7) When I purchase ________, I own a portion of a firm and have the right to vote on issues important to the firm and to elect its directors.A) bondsB) billsC) notesD) stockAnswer: DAACSB: Application of Knowledge8) Equity holders are a corporation's ________. That means the corporation must pay all of its debt holders before it pays its equity holders.A) debtorsB) brokersC) residual claimantsD) underwritersAnswer: CAACSB: Reflective Thinking9) Which of the following benefits directly from any increase in the corporation's profitability?A) a bond holderB) a commercial paper holderC) a shareholderD) a T-bill holderAnswer: CAACSB: Reflective Thinking10) A financial market in which previously issued securities can be resold is called a ________ market.A) primaryB) secondaryC) tertiaryD) used securitiesAnswer: BAACSB: Application of Knowledge11) An important financial institution that assists in the initial sale of securities in the primary market is theA) investment bank.B) commercial bank.C) stock exchange.D) brokerage house.Answer: AAACSB: Application of Knowledge12) When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the public.A) underwritesB) undertakesC) overwritesD) overtakesAnswer: AAACSB: Application of Knowledge13) Which of the following is NOT a secondary market?A) foreign exchange marketB) futures marketC) options marketD) IPO marketAnswer: DAACSB: Reflective Thinking14) ________ work in the secondary markets matching buyers with sellers of securities.A) DealersB) UnderwritersC) BrokersD) ClaimantsAnswer: CAACSB: Application of Knowledge15) A corporation acquires new funds only when its securities are sold in theA) primary market by an investment bank.B) primary market by a stock exchange broker.C) secondary market by a securities dealer.D) secondary market by a commercial bank.Answer: AAACSB: Reflective Thinking16) A corporation acquires new funds only when its securities are sold in theA) secondary market by an investment bank.B) primary market by an investment bank.C) secondary market by a stock exchange broker.D) secondary market by a commercial bank.Answer: BAACSB: Reflective Thinking17) An important function of secondary markets is toA) make it easier to sell financial instruments to raise funds.B) raise funds for corporations through the sale of securities.C) make it easier for governments to raise taxes.D) create a market for newly constructed houses.Answer: AAACSB: Reflective Thinking18) Secondary markets make financial instruments moreA) solid.B) vapid.C) liquid.D) risky.Answer: CAACSB: Reflective Thinking19) A liquid asset isA) an asset that can easily and quickly be sold to raise cash.B) a share of an ocean resort.C) difficult to resell.D) always sold in an over-the-counter market.Answer: AAACSB: Reflective Thinking20) The higher a security's price in the secondary market the ________ funds a firm can raise byselling securities in the ________ market.A) more; primaryB) more; secondaryC) less; primaryD) less; secondaryAnswer: AAACSB: Reflective Thinking21) When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called a(n)A) exchange.B) over-the-counter market.C) common market.D) barter market.Answer: AAACSB: Application of Knowledge22) In a(n) ________ market, dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.A) exchangeB) over-the-counterC) commonD) barterAnswer: BAACSB: Application of Knowledge23) Forty or so dealers establish a "market" in these securities by standing ready to buy and sell them.A) secondary stocksB) surplus stocksC) U.S. government bondsD) common stocksAnswer: CAACSB: Application of Knowledge24) Which of the following statements about financial markets and securities is TRUE?A) Many common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange. B) As a corporation gets a share of the broker's commission, a corporation acquires new funds whenever its securities are sold.C) Capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid.D) Prices of capital market securities are usually more stable than prices of money market securities, and so are often used to hold temporary surplus funds of corporations.Answer: AAACSB: Reflective Thinking25) A financial market in which only short-term debt instruments are traded is called the________ market.A) bondB) moneyC) capitalD) stockAnswer: BAACSB: Analytical Thinking26) Equity instruments are traded in the ________ market.A) moneyB) bondC) capitalD) commoditiesAnswer: CAACSB: Analytical Thinking27) Because these securities are more liquid and generally have smaller price fluctuations, corporations and banks use the ________ securities to earn interest on temporary surplus funds.A) money marketB) capital marketC) bond marketD) stock marketAnswer: AAACSB: Reflective Thinking28) Corporations receive funds when their stock is sold in the primary market. Why do corporations pay attention to what is happening to their stock in the secondary market? Answer: The existence of the secondary market makes their stock more liquid and the price in the secondary market sets the price that the corporation would receive if they choose to sell more stock in the primary market.AACSB: Reflective Thinking29) Describe the two methods of organizing a secondary market.Answer: A secondary market can be organized as an exchange where buyers and sellers meet in one central location to conduct trades. An example of an exchange is the New York Stock Exchange. A secondary market can also be organized as an over-the-counter market. In this type of market, dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices. An example of an over-the-counter market is the federal funds market.AACSB: Reflective Thinking2.3 Financial Market Instruments1) Prices of money market instruments undergo the least price fluctuations because ofA) the short terms to maturity for the securities.B) the heavy regulations in the industry.C) the price ceiling imposed by government regulators.D) the lack of competition in the market.Answer: AAACSB: Reflective Thinking2) U.S. Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity.A) premiumB) collateralC) defaultD) discountAnswer: DAACSB: Analytical Thinking3) U.S. Treasury bills are considered the safest of all money market instruments because there isa low probability ofA) defeat.B) default.C) desertion.D) demarcation.Answer: BAACSB: Analytical Thinking4) A debt instrument sold by a bank to its depositors that pays annual interest of a given amount and at maturity pays back the original purchase price is calledA) commercial paper.B) a certificate of deposit.C) a municipal bond.D) federal funds.Answer: BAACSB: Analytical Thinking5) A short-term debt instrument issued by well-known corporations is calledA) commercial paper.B) corporate bonds.C) municipal bonds.D) commercial mortgages.Answer: AAACSB: Analytical Thinking6) ________ are short-term loans in which Treasury bills serve as collateral.A) Repurchase agreementsB) Negotiable certificates of depositC) Federal fundsD) U.S. government agency securitiesAnswer: AAACSB: Analytical Thinking7) Collateral is ________ the lender receives if the borrower does not pay back the loan.A) a liabilityB) an assetC) a presentD) an offeringAnswer: BAACSB: Analytical Thinking8) Federal funds areA) funds raised by the federal government in the bond market.B) loans made by the Federal Reserve System to banks.C) loans made by banks to the Federal Reserve System.D) loans made by banks to each other.Answer: DAACSB: Analytical Thinking9) An important source of short-term funds for commercial banks are ________ which can be resold on the secondary market.A) negotiable CDsB) commercial paperC) mortgage-backed securitiesD) municipal bondsAnswer: AAACSB: Application of Knowledge。