货币银行学 (2)

Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Everything else held constant, when prices in the art market become more uncertain, 1) _______

A) the demand curve for bonds shifts to the right and the interest rate falls.

B) the supply curve for bonds shifts to the right and the interest rate falls.

C) the demand curve for bonds shifts to the left and the interest rate rises.

D) the demand curve for bonds shifts to the left and the interest rate falls.

2) Which of the following $1,000 face-value securities has the highest yield to maturity? 2) _______

A) A 5 percent coupon bond selling for $1,000

B) A 10 percent coupon bond selling for $1,000

C) A 12 percent coupon bond selling for $1,100

D) A 12 percent coupon bond selling for $1,000

3) The recent Enron and Tyco scandals are an example of 3) _______

A) the principal-agent problem. B) the adverse selection problem.

C) the "lemons problem." D) the free-rider problem.

4) A change in perceived risk of a stock changes 4) _______

A) the expected dividend growth rate. B) the expected sales price.

C) the current dividend. D) the required rate of return.

5) ________ policy involves decisions about government spending and taxation. 5) _______

A) Systemic B) Financial C) Fiscal D) Monetary

6) The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond, and investors have no preference for short-term bonds relative to long-term bonds. 6) _______

A) liquidity premium theory B) segmented markets theory

C) separable markets theory D) expectations theory

7) The ________ problem helps to explain why the private production and sale of information cannot eliminate ________. 7) _______

A) free-rider; moral hazard B) free-rider; adverse selection

C) principal-agent; adverse selection D) principal-agent; moral hazard

8) If the interest rate on a bond is below the equilibrium interest rate, there is an excess ________ of bonds and the bond price will ________. 8) _______

A) supply; rise B) demand; rise C) demand; fall D) supply; fall

9) Government regulations require publicly traded firms to provide information, reducing 9) _______

A) transactions costs. B) the need for diversification.

C) the adverse selection problem. D) economies of scale.

10) Because of their ________ liquidity, ________ U.S. government securities are called secondary reserves.

10) ______

A) low; short-term B) low; long-term