mini-case business finance 答案
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。
专八2018年真题和答案解析
10. [A] Problems in the electoral process.
[B] Formation of a new government.
[C] Premature announcement of results.
[D] Democracy in Afghanistan.
PART Ⅱ READING COMPREHENSION（45 MIN）
[C] Slowness in ballots counting.
2.[A] Other voices within Afghanistan wanted so.
[C] All the ballots had been counted.
3. [A] To calm the voters.
[C] To stick to the election rules.
mini-lecture, please complete the gap-filling task on ANSWER SHEET ONE and write NO MORE THAN THREE WORDS for each gap. Make sure you fill in is both grammatically and semantically acceptable. You may use the blank sheet for note-taking.
You have THIRTY seconds to preview the gap-filling task. Now listen to the mini-lecture. When it is over, you will be given THREE minutes to check your work.
星火英语版2020年专八考试参考答案(供参考)
【星火英语版】2017年英语专业八级考试参考答案SECTION A MINI-LECTURE1. signing2. primary3. literacy4. different but complementary5. avoiding6. many other contexts7. characteristics/features8. reaction9. distance10. emotion11. deliberate12. intimacy and immediacy13. continuum14. types of language15. the usageSECTION B INTERVIEW1.What is international leaders’ assessment of the current battle against Ebola?答案：B. Disheartening.2.How many people are now working in the treatment unit in Liberia?答案：A. 200.3.According to Mary, what is the challenge in the battle against Ebola?答案：D. Insufficient operational efforts on the ground.4.Why do health workers need case management protocol training?答案：B. They can open up more treatment units.5.What does this interview mainly talk about?答案：C. Ebola outpacing operational efforts.6.What is Tom’s main role in his new position?答案：C. Using media information to inspire new ideas.7.According to Tom, what does innovation require of people?答案：B. Being brave and willing to take a risk8.What does Tom see as game-changing chances in the future?答案：B. Aiming at a consumer level.9.What does Tom do first to deal with the toughest part of his work?答案：D. Examining the future carefully.10.Which of the following might Tom work for?答案：A. A media agency.SECTION A MULTIPLE CHOICE QUESTIONSPASSAGE ONE11. The first part of Para. 4 refers to the fact that .答案：[A] life there is quiet and slow12. “The lack of awareness” in Para. 5 refers to .答案：［C］little knowledge of the beauty of the beach13. The author uses “gloriously” in Para. 6 to .答案：［C］contrast greenery with isolation14. The sentence “We never ate the same thing twice” in Para. 10 reflects the of the seafood there.答案：［D］variety15. Which of the following themes is repeated in both Paras.1 and 11?答案：［A］Publicity.PASSAGE TWO16. It can be inferred from Paras.1 and 2 that teachers used to .答案：［D］teach extended reading in a perfunctory way17. The sentence “we all understand and instinctively feel narrative structure” in Para.4 indicates that .答案：［C］we are born story-tellers18. Samuel Johnson regards the relationship between a writer and a reader as (Para.5).答案：［B］collaborative19. In Para.7, the author sees “pre-reading” as the most important part of reading because .答案：［C］it can attract students’ attention20. “Textual Intervention” suggested by Rob Pope (in Para. 8) is expected to fulfill all the following functions EXCEPT .答案：［C］stretching the imaginationPASSAGE THREE21. According to the author, “national service” is comparable to “military training” because they both cultivate youngsters’ .答案：［B］self discipline22. The author cites the example of his father in order to show .答案：［A］the importance of discipline23. According to the author, a national service program can bring the following benefits to America’s youngsters EXCEPT .答案：［A］increase in income24. According to the context, what does “the fire” refer to (Para. 14)?答案：［B］Anger.SECTION B SHORT ANSWER QUESTIONS说明：简答题答案不唯一，意思对即可。
米什金货币金融学英文版习题答案chapter14英文习题
米什金货币金融学英文版习题答案chapter14英文习题Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 14 Central Banks: A Global Perspective14.1 Origins of the Federal Reserve System1) The First Bank of the United StatesA) was disbanded in 1811 when its charter was not renewed.B) had its charter renewal vetoed in 1832.C) was fundamental in helping the Federal Government finance the War of 1812.D) None of the above.Answer: AAACSB: Reflective Thinking2) The Second Bank of the United StatesA) was disbanded in 1811 when its charter was not renewed.B) had its charter renewal vetoed in 1832.C) is considered to be the primary cause of the bank panic of 1907.D) None of the above.Answer: BAACSB: Reflective Thinking3) The public's fear of centralized power and distrust of moneyed interests led to the demise of the first two experiments in central banking, otherwise known asA) the First Bank of the United States and the Second Bank of the United States.B) the First Bank of the United States and the Central Bank of the United States.C) the First Central Bank of the United States and the SecondCentral Bank of the United States.D) the First Bank of North America and the Second Bank of North America.Answer: AAACSB: Reflective Thinking4) The financial panic of 1907 resulted in such widespread bank failures and substantial losses to depositors that the American public finally became convinced thatA) the First Bank of the United States had failed to serve as a lender of last resort.B) the Second Bank of the United States had failed to serve as a lender of last resort.C) the Federal Reserve System had failed to serve as a lender of last resort.D) a central bank was needed to prevent future panics.Answer: DAACSB: Reflective Thinking5) What makes the Federal Reserve so unique compared to other central banks around the world is itsA) centralized structure.B) decentralized structure.C) regulatory functions.D) monetary policy functions.Answer: BAACSB: Reflective Thinking14.2 Structure of the Federal Reserve System1) Which of the following is NOT an entity of the Federal Reserve System?A) Federal Reserve BanksB) the Comptroller of the CurrencyC) the Board of GovernorsD) the Federal Open Market CommitteeAnswer: BAACSB: Reflective Thinking2) Which of the following is an entity of the Federal Reserve System?A) the U.S. Treasury SecretaryB) the FOMCC) the Comptroller of the CurrencyD) the FDICAnswer: BAACSB: Reflective Thinking3) The three largest Federal Reserve banks (New York, Chicago, and San Francisco) combined hold more than ________ percent of the assets of the Federal Reserve System.A) 25B) 33C) 50D) 67Answer: CAACSB: Analytical Thinking4) The Federal Reserve Banks are ________ institutions since they are owned by the ________.A) quasi-public; private commercial banks in the district where the Reserve Bank is locatedB) public; private commercial banks in the district where the Reserve Bank is locatedC) quasi-public; Board of GovernorsD) public; Board of GovernorsAnswer: AAACSB: Reflective Thinking5) Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors.A) three; sixB) four; fiveC) five; fourD) six; threeAnswer: DAACSB: Reflective Thinking6) The nine directors of the Federal Reserve Banks are split into three categories: ________ are professional bankers, ________ are leaders from industry, and ________ are to represent the public interest and are not allowed to be officers, employees, or stockholders of banks.A) 5; 2; 2B) 2; 5; 2C) 4; 2; 3D) 3; 3; 3Answer: DAACSB: Reflective Thinking7) Member commercial banks have purchased stock in their district Fed banks; the dividend paid by that stock is limited by law to ________ percent annually.A) fourB) fiveC) sixD) eightAnswer: CAACSB: Reflective Thinking8) The Federal Reserve Bank of ________ houses the open market desk.A) BostonB) New YorkC) ChicagoD) San FranciscoAnswer: BAACSB: Reflective Thinking9) The president from which Federal Reserve Bank always hasa vote in the Federal Open Market Committee?A) PhiladelphiaB) BostonC) San FranciscoD) New YorkAnswer: DAACSB: Reflective Thinking10) An important function of the regional Federal Reserve Banks isA) setting reserve requirements.B) clearing checks.C) determining monetary policy.D) setting margin requirements.Answer: BAACSB: Reflective Thinking11) Which of the following functions is NOT performed by any of the twelve regional Federal Reserve Banks?A) check clearingB) conducting economic researchC) setting interest rates payable on time depositsD) issuing new currencyAnswer: CAACSB: Reflective Thinking12) All ________ are required to be members of the Fed.A) state chartered banksB) national banks chartered by the Office of the Comptroller of the CurrencyC) banks with assets less than $100 millionD) banks with assets less than $500 millionAnswer: BAACSB: Reflective Thinking13) Of all commercial banks, about ________ belong to the Federal Reserve System.A) 10%B) one halfC) one thirdD) 90%Answer: CAACSB: Reflective Thinking14) Prior to 1980, member banks left the Federal Reserve System due toA) the high cost of discount loans.B) the high cost of required reserves.C) a desire to avoid interest rate regulations.D) a desire to avoid credit controls.Answer: BAACSB: Reflective Thinking15) The Fed's support of the Depository Institutions Deregulation and Monetary Control Act of 1980 stemmed in part from itsA) concern over declining Fed membership.B) belief that all banking regulations should be eliminated.C) belief that interest rate ceilings were too high.D) belief that depositors had to become more knowledgeable of banking operations. Answer: AAACSB: Reflective Thinking16) Banks subject to reserve requirements set by the Federal Reserve System includeA) only nationally chartered banks.B) only banks with assets less than $100 million.C) only banks with assets less than $500 million.D) all banks whether or not they are members of the Federal Reserve System.Answer: DAACSB: Reflective Thinking17) The Depository Institutions Deregulation and Monetary Control Act of 1980A) established higher reserve requirements for nonmember than for member banks.B) established higher reserve requirements for member than for nonmember banks.C) abolished reserve requirements.D) established uniform reserve requirements for all banks.Answer: DAACSB: Reflective Thinking18) There are ________ members of the Board of Governors of the Federal Reserve System.A) 5B) 7C) 12D) 19Answer: BAACSB: Reflective Thinking19) Members of the Board of Governors areA) chosen by the Federal Reserve Bank presidents.B) appointed by the newly elected president of the United States, as are cabinet positions.C) appointed by the president of the United States and confirmed by the Senate.D) never allowed to serve more than 7-year terms.Answer: CAACSB: Reflective Thinking20) Each governor on the Board of Governors can serveA) only one nonrenewable fourteen-year term.B) one full nonrenewable fourteen-year term plus part of another term.C) only one nonrenewable eight-year term.D) one full nonrenewable eight-year term plus part of another term.Answer: BAACSB: Reflective Thinking21) The Chairman of the Board of Governors is chosen from among the seven governors and serves a ________, renewable term.A) one-yearB) two-yearC) four-yearD) eight-yearAnswer: CAACSB: Reflective Thinking22) While the discount rate is "established" by the regionalFederal Reserve Banks, in truth, the rate is determined byA) Congress.B) the president of the United States.C) the Senate.D) the Board of Governors.Answer: DAACSB: Reflective Thinking23) Which of the followings is a duty of the Board of Governors of the Federal Reserve System?A) setting margin requirements, the fraction of the purchase price of the securities that has to be paid for with cashB) setting the maximum interest rates payable on certain types of time deposits under Regulation QC) regulating credit with the approval of the president under the Credit Control Act of 1969D) All governors advise the president of the United States on economic policy.Answer: AAACSB: Reflective Thinking24) Which of the followings is NOT a current duty of the Board of Governors of the Federal Reserve System?A) setting margin requirements, the fraction of the purchase price of the securities that has to be paid for with cashB) setting the maximum interest rates payable on certain types of time deposits under Regulation QC) approving the discount rate "established" by the Federal Reserve banksD) voting on the conduct of open market operationsAnswer: BAACSB: Reflective Thinking25) The Federal Open Market Committee usually meets ________ times a year.A) fourB) sixC) eightD) twelveAnswer: CAACSB: Reflective Thinking26) The Federal Reserve entity that makes decisions regarding the conduct of open market operations is theA) Board of Governors.B) chairman of the Board of Governors.C) Federal Open Market Committee.D) Open Market Advisory CouncilAnswer: CAACSB: Reflective Thinking27) The Federal Open Market Committee consists of theA) five senior members of the seven-member Board of Governors.B) seven members of the Board of Governors and seven presidents of the regional Fed banks.C) seven members of the Board of Governors and five presidents of the regional Fed banks.D) twelve regional Fed bank presidents and the chairman of the Board of Governors. Answer: CAACSB: Reflective Thinking28) The majority of members of the Federal Open Market Committee areA) Federal Reserve Bank presidents.B) members of the Federal Advisory Council.C) presidents of member banks.D) the seven members of the Board of Governors.Answer: DAACSB: Reflective Thinking29) Each Fed bank president attends FOMC meetings; although only ________ Fed bank presidents vote on policy, all ________ provide input.A) three; tenB) five; tenC) three; twelveD) five; twelveAnswer: DAACSB: Reflective Thinking30) Although reserve requirements and the discount rate are not actually set by the ________, decisions concerning these policy tools are effectively made there.A) Federal Reserve Bank of New YorkB) Board of GovernorsC) Federal Open Market CommitteeD) Federal Reserve BanksAnswer: CAACSB: Reflective Thinking31) The research document given to the Federal Open Market Committee that contains information on the state of the economy in each Federal Reserve district is called theA) beige book.B) green book.C) blue book.D) black book.Answer: AAACSB: Reflective Thinking32) The teal book is the Fed research document containingA) the forecast of national economic variables for the next three years.B) forecasts of the money aggregates conditional on different monetary policy stances.C) information on the state of the economy in each Federal Reserve district.D) both A and B.E) A, B and C.Answer: DAACSB: Reflective Thinking33) The Federal Open Market Committee's "balance of risks" is an assessment of whether, in the future, its primary concern will beA) higher exchange rates or higher unemployment.B) higher inflation or a stronger economy.C) higher inflation or a weaker economy.D) lower inflation or a stronger economy.Answer: CAACSB: Reflective Thinking34) Subject to the approval of the Board of Governors, the decision of choosing the president ofa district Federal Reserve Bank is made byA) all nine district bank directors.B) the six district bank directors elected by the member banks.C) three district bank directors who are professional bankers.D) district bank directors who are not professional bankers.E) class A and class B directors.Answer: DAACSB: Ethical understanding and reasoning abilities35) Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System?Answer: The New York district contains the largest banks in the country. The New York Fed supervises and examines these banks to insure their soundness and the safety of the nation's financial system. The New York Fed conducts open market operations and foreign exchange transactions for the Fed and Treasury. The New York Fed belongs to the Bank for International Settlements, so its president and the chairman of the Board of Governors represent the U.S. at the monthly meetings of the world's central banks. The New York Fed president is the only president of a regional Fed who is a permanent voting member of the FOMC.AACSB: Reflective Thinking36) Who are the voting members of the Federal Open Market Committee and why is this committee important? Where does the power lie within this committee?Answer: The FOMC determines the monetary policy of the United States through its decisions about open market operations. It also effectively determines the discount rate and reserve requirements. The seven members of the Board of Governors, the president of the New York Fed, and four of the other eleven regional bank presidents are voting members on a rotating basis. Within the FOMC, the chairman of the Board of Governors wields the power.AACSB: Reflective Thinking14.3 How Independent is the Fed?1) Instrument independence is the ability of ________ to setmonetary policy ________.A) the central bank; goalsB) Congress; goalsC) Congress; instrumentsD) the central bank; instrumentsAnswer: DAACSB: Reflective Thinking2) The ability of a central bank to set monetary policy instruments isA) political independence.B) goal independence.C) policy independence.D) instrument independence.Answer: DAACSB: Reflective Thinking3) Goal independence is the ability of ________ to set monetary policy ________.A) the central bank; goalsB) Congress; goalsC) Congress; instrumentsD) the central bank; instrumentsAnswer: AAACSB: Reflective Thinking4) The ability of a central bank to set monetary policy goals isA) political independence.B) goal independence.C) policy independence.D) instrument independence.Answer: BAACSB: Reflective Thinking5) Members of Congress are able to influence monetary policy, albeit indirectly, through their ability toA) withhold appropriations from the Board of Governors.B) withhold appropriations from the Federal Open Market Committee.C) propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies.D) instruct the General Accounting Office to audit the foreign exchange market functions of the Federal Reserve.Answer: CAACSB: Reflective Thinking6) Explain two concepts of central bank independence. Is the Fed politically independent? Why do economists think central bank independence is important?Answer: Instrument independence is the ability of the central bank to set its instruments, and goal independence is the ability of a central bank to set its goals. The Fed enjoys both types of independence. The Fed is largely independent of political pressure due to its earnings and the conditions of appointment of the Board of Governors and its chairman. However, some political pressure can be applied through the threat or enactment of legislation affecting the Fed. Independence is important because there is some evidence that independent central banks pursue lower rates of inflation without harming overall economic performance.AACSB: Reflective Thinking14.4 Should the Fed be Independent?1) The case for Federal Reserve independence does NOTinclude the idea thatA) political pressure would impart an inflationary bias to monetary policy.B) a politically insulated Fed would be more concerned with long-run objectives and thus be a defender of a sound dollar and a stable price level.C) policy is always performed better by an elite group such as the Fed.D) a Federal Reserve under the control of Congress or the president might make the so-called political business cycle more pronounced.Answer: CAACSB: Reflective Thinking2) The political business cycle refers to the phenomenon that just before elections, politicians enact ________ policies. After the elections, the bad effects of these policies (for example, ________ ) have to be counteracted with ________ policies.A) expansionary; higher unemployment; contractionaryB) expansionary; a higher inflation rate; contractionaryC) contractionary; higher unemployment; expansionaryD) contractionary; a higher inflation rate; expansionaryAnswer: BAACSB: Analytical Thinking3) The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impartA) an inflationary bias to monetary policy.B) a deflationary bias to monetary policy.C) a disinflationary bias to monetary policy.D) a countercyclical bias to monetary policy.Answer: AAACSB: Ethical understanding and reasoning abilities4) Critics of the current system of Fed independence contend thatA) the current system is undemocratic.B) voters have too much say about monetary policy.C) the president has too much control over monetary policy on a day-to-day basis.D) the Board of Governors is held responsible for policy missteps.Answer: AAACSB: Diverse and multicultural work environments5) Recent research indicates that inflation performance (low inflation) has been found to be best in countries withA) the most independent central banks.B) political control of monetary policy.C) money financing of budget deficits.D) a policy of always keeping interest rates low.Answer: AAACSB: Reflective Thinking6) Make the case for and against an independent Federal Reserve.Answer: Case for: 1. An independent Federal Reserve can shield the economy from the political business cycle, and it will be less likely to have an inflationary bias to monetary policy.2. Control of the money supply is too important to leave to inexperienced politicians.Case against: 1. It is undemocratic to have monetary policy be controlled by a small number of individuals that are not accountable. 2. In the past, an independent Fed has not used itsfreedom wisely. 3. Its independence may encourage it to pursue its own self-interest rather than the public's interest.AACSB: Ethical understanding and reasoning abilities14.5 Explaining Central Bank Behavior1) The theory of bureaucratic behavior suggests that the objective of a bureaucracy is to maximizeA) the public's welfare.B) profits.C) its own welfare.D) conflict with the executive and legislative branches of government.Answer: CAACSB: Reflective Thinking2) The theory of bureaucratic behavior when applied to the Fed helps to explain why the FedA) was supportive of congressional attempts to limit the central bank's autonomy.B) was so secretive about the conduct of future monetary policy.C) sought less control over banks in the 1980s.D) was willing to take on powerful groups that may threaten its autonomy.Answer: BAACSB: Reflective Thinking3) What is the theory of bureaucratic behavior and how can it be used to explain the behavior of the Federal Reserve?Answer: The theory of bureaucratic behavior concludes that the main objective of any bureaucracy is to maximize its own welfare, which is related to power and prestige. This can explain why the Federal Reserve has defended its autonomy, avoidsconflict with Congress and the president, and its push to gain more control over banks.AACSB: Analytical Thinking14.6 Structure and Independence of the European Central Bank1) Under the European System of Central Banks, the Executive Board is similar in structure to the ________ of the Federal Reserve System.A) Board of GovernorsB) Federal Open Market CommitteeC) Federal Reserve BanksD) Federal Advisory CouncilAnswer: AAACSB: Reflective Thinking2) Under the European System of Central Banks, the Governing Council is similar in structure to the ________ of the Federal Reserve System.A) Board of GovernorsB) Federal Open Market CommitteeC) Federal Reserve BanksD) Federal Advisory CouncilAnswer: BAACSB: Reflective Thinking3) Under the European System of Central Banks, the National Central Banks have the same role as the ________ of the Federal Reserve System.A) Board of GovernorsB) Federal Open Market CommitteeC) Federal Reserve BanksD) Federal Advisory CouncilAnswer: CAACSB: Reflective Thinking4) Members of the Executive Board of the European System of Central Banks are appointed to ________ year, nonrenewable terms.A) fourB) eightC) tenD) fourteenAnswer: BAACSB: Reflective Thinking5) Which of the following statements comparing the European System of Central Banks and the Federal Reserve System is TRUE?A) The budgets of the Federal Reserve Banks are controlled by the Board of Governors, while the National Central Banks control their own budgets and the budget of the European Central Bank.B) The European Central Bank has similar power over the National Central Banks when compared to the level of power the Board of Governors has over the Federal Reserve Banks. C) Just like the Federal Reserve System, monetary operations are centralized in the European System of Central Banks with the European Central Bank.D) The European Central Bank's involvement in supervision and regulation of financial institutions is comparable to the Board of Governors' involvement.Answer: AAACSB: Reflective Thinking6) The Governing Council usually meets ________ times a year.A) fourB) sixC) eightD) twelveAnswer: DAACSB: Reflective Thinking7) In the Governing Council, the decision of what policy to implement is made byA) majority vote of the Executive Board members.B) majority vote of the heads of the National Banks.C) consensus.D) majority vote of all members of the Governing Council.Answer: CAACSB: Reflective Thinking8) The central bank which is generally regarded as the most independent in the world because its charter cannot be changed by legislation is theA) Bank of England.B) Bank of Canada.C) European Central Bank.D) Bank of Japan.Answer: CAACSB: Reflective Thinking9) Explain the similarities and differences between the European System of Central Banks andthe Federal Reserve System.Answer: The similarities between the two are in their structure. The National Central Banks of the member countries of the Eurosystem have the same role as the Federal Reserve Banks in the Federal Reserve System. The Executive Board and theGoverning Council of the Eurosystem resemble the Board of Governors and the Federal Open Market Committee of the Federal Reserve System, respectively. There are three major differences between the two. The first difference is concerning the control of the budgets. In the Fed, the Board of Governors controls the budgets of the Reserve Banks while in the Eurosystem, the National Banks control the budget of the European Central Bank. The second difference is the monetary operations of the Eurosystem are conducted by the National Banks, so they are not as centralized as the monetary operations in the Federal Reserve System. Finally, the European Central Bank is not involved in the supervision and regulation of the financial institutions in the euro zone while the Federal Reserve is involved with the regulation and supervision of the financial institutions in the United States.AACSB: Reflective Thinking14.7 Structure and Independence of Other Foreign Central Banks1) On paper, the Bank of Canada has ________ instrument independence and ________ goal independence when compared to the Federal Reserve System.A) less; lessB) less; moreC) more; lessD) more; moreAnswer: AAACSB: Reflective Thinking2) The oldest central bank, having been founded in 1694, is theA) Bank of England.B) Deutsche Bundesbank.C) Bank of Japan.D) Federal Reserve System.Answer: AAACSB: Reflective Thinking3) While legislation enacted in 1998 granted the Bank of Japan new powers and greater autonomy, its critics contend that its independence isA) limited by the Ministry of Finance's veto power over a portion of its budget.B) too great because it need not pursue a policy of price stability even if that is the popular will of the people.C) too great since the Ministry of Finance no longer has veto power over the bank's budget.D) limited since the Ministry of Finance can dismiss senior bank officials.Answer: AAACSB: Reflective Thinking4) Regarding central bank independenceA) the Fed is more independent than the European Central Bank.B) the European Central Bank is more independent than the Fed.C) the trend in industrialized nations has been to reduce central bank independence.D) the Bank of England has the longest tradition of independence of any central bank in the world.Answer: BAACSB: Reflective Thinking5) The trend in recent years is that more and moregovernmentsA) have been granting greater independence to their central banks.B) have been reducing the independence of their central banks to make them more accountable for poor economic performance.C) have mandated that their central banks focus on controlling inflation.D) have required their central banks to cooperate more with their Ministers of Finance. Answer: AAACSB: Reflective Thinking6) Which of the following statements about central bank structure and independence is TRUE?A) In recent years, with the exception of the Bank of England and the Bank of Japan, most countries have reduced the independence of their central banks, subjecting them to greater democratic control.B) Before the Bank of England was granted greater independence, the Federal Reserve was the most independent of the world's central banks.C) Both theory and experience suggest that more independent central banks produce better monetary policy.D) While the European Central Bank is independent, it is not as independent as the Federal Reserve.Answer: CAACSB: Reflective Thinking。
国际财务管理(英文版)课后习题答案2
CHAPTER 1GLOBALIZATION AND THE MULTINATIONAL FIRMSUGGESTED ANSWERS TO END—OF-CHAPTER QUESTIONS QUESTIONS1 。
Why is it important to study international financial management？Answer: We are now living in a world where all the major economic functions, i.e.，consumption，production, and investment，are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance some twenty years ago. At that time, most professors customarily (and safely, to some extent) ignored international aspects of finance 。
This mode of operation has become untenable since then.2. How is international financial management different from domestic financial management？Answer ：There are three major dimensions that set apart international finance from domestic finance 。
_高级综合商务英语1_参考答案-Unit 1-副本
Unit 1 GlobalizationLead-in1. Quiz1) B 2) C 3) D 4) A 5) A2. A Mini CaseSuggested answers:●As Zara continues to expand, it might have to open other distribution centers onother continents. Language, culture, and work relations may vary significantly from the closely-managed operation currently in place in Spain. The company may run into more specific challenges in accommodating customers‘requirements due to a lack of cultural sensitivity. Zara‘s expansion globally may pose the challenge of moving from a more centralized management style to a more global style.●Lorena needs to ensure that she has a truly international team in place withmembers from both multilingual and multicultural background; draw up a plan on how global logistics will support global expansion; start a succession plan and train new logistics managers who could be ready to take on overseas responsibilities; and encourage store managers to include suggestions on cultural specifics which may help in making the final product and brand expansion successful.Text AI.Reading Comprehension1.Determine whether the following statements are true or false. Write a T fortrue, an F for false, and an NG for not given.1) T 2) F 3) T 4) F 5) F 6) T 7) T 8) F 9) T 10) NG2.Essay Questions1)The modern multinational companies have had passed through three phases. Firstcame the 19th-century ―international model‖, with firms based in their home country and selling goods through overseas sales offices. This was followed by the classic multinational firm in which the parent company created smaller versions of itself in countries around the world. And now it has been replaced by a single integrated global entity in which the firm will move people and jobs anywhere in the world, based on the right cost, the right skills and the right business environment.2)The big attractions from emerging markets are low-cost labor, highly skilledpersonnel, and a chance to cooperate with the government as a potential customer.3)They are lacking the management talents who can practice and support businessoperating models that will allow them to generate profitable growth in more mature markets over the long term.4)The single biggest challenge facing Western multinationals is the lack ofemerging-market experience in their senior ranks. Moreover, multinationals have great trouble retaining the managers they do have in emerging markets.―Well-trained, good, honest people are scarce in emerging markets. Multinationals are better at training these people than emerging-market companies, which prefer to poach them once they are trained.‖II.Blank-filling: Complete the following sentences with the words given in the box. Change the form when necessary.1) cutting-edge 2) commoditized 3) aggressive 4) forge 5) benchmark 6) blueprint 7) expatriates 8) deploy 9) ferocious 10) substantial III.Paraphrasing1.Rewriting: Rewrite the underlined part of each sentence in your own words.1) ―In the 97 years of the company‘s history, never had a particular kind of product or merchandise been managed outside the U.S.,‖he says excitedly, noting that ―Latin America now reports to Shanghai.‖2) But the assault on its services business led by a trio of Indian outsourcing upstarts, Tata Consulting Services, Infosys and Wipro, posed a big threat to the field that might be the main sources of growth for the company as expected by Mr. Palmisano.3) In many emerging markets the most attractive potential customer is the government, because of the government‘s urgent needs to improve the infrastructure facilities in a wide range, from the mobile telephone networks to roads, airports and ports, energy and water supply.4) A 2007 study of China‘s top 200 publicly traded companies found that it is still difficult even for the leading companies in China to compete with those global giants.5) American multinationals now have a ―ferocious interest in attracting non-Americans to the board‖, but they can find only a few qualified executives from the European countries, not to mention those from emerging markets.2. Sentence Transformation: Complete the following sentences based on the structures given.1) Because of the fact that hot labor markets in emerging markets are causing extremely high turnover rates, every big multinational is aiming to win the ―war for talent‖ and taking it as one of the most urgent issues.2) It is believed that as a big multinational company it enjoys advantages in recruiting and retaining talented managers than the local competitors.3) Despite the growth of their revenue which increased on the back of China‘s continued economic growth, they could only create half of the value of their global competitors.4) No longer the ―young bucks or retirement-posing types‖as they used to be,nowadays the expatriate managers appointed by multinationals to work in emerging markets are generally of a much higher quality.5) Compared with those old multinationals, the firms in emerging markets are typically lacking the depth of management talent, though the founders are often impressive.IV.Translation1.Sentence Translation1) 这一雄心勃勃的策略是对来自新兴市场的激烈竞争做出的回应。
米什金货币金融学英文版习题答案chapter6英文习题
米什金货币金融学英文版习题答案chapter6英文习题Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 6 The Risk and Term Structure of Interest Rates6.1 Risk Structure of Interest Rates1) The risk structure of interest rates isA) the structure of how interest rates move over time.B) the relationship among interest rates of different bonds with the same maturity.C) the relationship among the term to maturity of different bonds.D) the relationship among interest rates on bonds with different maturities.Answer: BAACSB: Reflective Thinking2) The risk that interest payments will not be made, or that the face value of a bond is not repaid when a bond matures isA) interest rate risk.B) inflation risk.C) liquidity risk.D) default risk.Answer: DAACSB: Application of Knowledge3) Bonds with no default risk are calledA) flower bonds.B) no-risk bonds.C) default-free bonds.D) zero-risk bonds.Answer: CAACSB: Application of Knowledge4) Which of the following bonds are considered to be default-risk free?A) municipal bondsB) investment-grade bondsC) U.S. Treasury bondsD) junk bondsAnswer: CAACSB: Analytical Thinking5) U.S. government bonds have no default risk becauseA) they are issued in strictly limited quantities.B) the federal government can increase taxes or print money to pay its obligations.C) they are backed with gold reserves.D) they can be exchanged for silver at any time.Answer: BAACSB: Reflective Thinking6) The spread between the interest rates on bonds with default risk and default-free bonds is called theA) risk premium.B) junk margin.C) bond margin.D) default premium.Answer: AAACSB: Application of Knowledge7) If the probability of a bond default increases because corporations begin to suffer large losses, then the default risk on corporate bonds will ________ and the expected return on these bonds will ________, everything else held constant.A) decrease; increaseB) decrease; decreaseC) increase; increaseD) increase; decreaseAnswer: DAACSB: Reflective Thinking8) A bond with default risk will always have a ________ risk premium and an increase in its default risk will ________ the risk premium.A) positive; raiseB) positive; lowerC) negative; raiseD) negative; lowerAnswer: AAACSB: Reflective Thinking9) If a corporation begins to suffer large losses, then the default risk on the corporate bond willA) increase and the bond's return will become more uncertain, meaning the expected return on the corporate bond will fall.B) increase and the bond's return will become less uncertain, meaning the expected return on the corporate bond will fall.C) decrease and the bond's return will become less uncertain, meaning the expected return on the corporate bond will fall.D) decrease and the bond's return will become less uncertain, meaning the expected return on the corporate bond will rise.Answer: AAACSB: Reflective Thinking10) If the possibility of a default increases because corporations begin to suffer losses, then the default risk on corporate bonds will ________, and the bonds' returns will become________ uncertain, meaning that the expected return on these bonds will decrease, everything else held constant.A) increase; lessB) increase; moreC) decrease; lessD) decrease; moreAnswer: BAACSB: Reflective Thinking11) Other things being equal, an increase in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________.A) right; rightB) right; leftC) left; rightD) left; leftAnswer: CAACSB: Reflective Thinking12) Other things being equal, a decrease in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________.A) right; rightB) right; leftC) left; rightD) left; leftAnswer: BAACSB: Reflective Thinking13) A(n) ________ in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the yield oncorporate bonds, all else equal.A) increase; increase; increaseB) increase; decrease; increaseC) decrease; increase; increaseD) decrease; decrease;decreaseAnswer: BAACSB: Reflective Thinking14) An increase in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant.A) increase; increaseB) reduce; reduceC) reduce; increaseD) increase; reduceAnswer: CAACSB: Reflective Thinking15) A decrease in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant.A) increase; increaseB) reduce; reduceC) reduce; increaseD) increase; reduceAnswer: DAACSB: Reflective Thinking16) An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant.A) increase; increaseB) reduce; reduceC) increase; reduceD) reduce; increaseAnswer: CAACSB: Reflective Thinking17) A decrease in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant.A) increase; increaseB) decrease; decreaseC) increase; decreaseD) decrease; increaseAnswer: DAACSB: Reflective Thinking18) An increase in default risk on corporate bonds ________ the demand for these bonds, but ________ the demand for default-free bonds, everything else held constant.A) increases; lowersB) lowers; increasesC) does not change; greatly increasesD) moderately lowers; does not changeAnswer: BAACSB: Reflective Thinking19) A decrease in default risk on corporate bonds ________ the demand for these bonds, and________ the demand for default-free bonds, everything else held constant.A) increases; lowersB) lowers; increasesC) does not change; greatly increasesD) moderately lowers; does not changeAnswer: AAACSB: Reflective Thinking20) As default risk increases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.A) increases; lessB) increases; moreC) decreases; lessD) decreases; moreAnswer: DAACSB: Reflective Thinking21) As default risk decreases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant.A) increases; lessB) increases; moreC) decreases; lessD) decreases; moreAnswer: AAACSB: Reflective Thinking22) As their relative riskiness ________, the expected return on corporate bonds ________ relative to the expected return on default-free bonds, everything else held constant.A) increases; increasesB) increases; decreasesC) decreases; decreasesD) decreases; does not changeAnswer: BAACSB: Reflective Thinking23) Which of the following statements are TRUE?A) A decrease in default risk on corporate bonds lowers the demand for these bonds, but increases the demand for default-free bonds.B) The expected return on corporate bonds decreases as default risk increases.C) A corporate bond's return becomes less uncertain as default risk increases.D) As their relative riskiness increases, the expected return on corporate bonds increases relative to the expected return on default-free bonds.Answer: BAACSB: Reflective Thinking24) Everything else held constant, if the federal government were to guarantee today that it will pay creditors if a corporation goes bankrupt in the future, the interest rate on corporate bonds will ________ and the interest rate on Treasury securities will ________.A) increase; increaseB) increase; decreaseC) decrease; increaseD) decrease; decreaseAnswer: CAACSB: Reflective Thinking25) Bonds with relatively high risk of default are calledA) Brady bonds.B) junk bonds.C) zero coupon bonds.D) investment grade bonds.Answer: BAACSB: Analytical Thinking26) Junk bonds, bonds with a low bond rating, are also known asA) high-yield bonds.B) investment grade bonds.C) high quality bonds.D) zero-coupon bonds.Answer: AAACSB: Application of Knowledge27) Bonds with relatively low risk of default are called ________ securities and have a rating of Baa (or BBB) and above; bonds with ratings below Baa (or BBB) have a higher default risk and are called ________.A) investment grade; lower gradeB) investment grade; junk bondsC) high quality; lower gradeD) high quality; junk bondsAnswer: BAACSB: Analytical Thinking28) Which of the following bonds would have the highest default risk?A) municipal bondsB) investment-grade bondsC) U.S. Treasury bondsD) junk bondsAnswer: DAACSB: Reflective Thinking29) Which of the following long-term bonds has the highest interest rate?A) corporate Baa bondsB) U.S. Treasury bondsC) corporate Aaa bondsD) municipal bondsAnswer: AAACSB: Reflective Thinking30) Which of the following securities has the lowest interest rate?A) junk bondsB) U.S. Treasury bondsC) investment-grade bondsD) corporate Baa bondsAnswer: BAACSB: Reflective Thinking31) The spread between interest rates on low quality corporate bonds and U.S. government bondsA) widened significantly during the Great Depression.B) narrowed significantly during the Great Depression.C) narrowed moderately during the Great Depression.D) did not change during the Great Depression.Answer: AAACSB: Reflective Thinking32) During the Great Depression years 1930-1933 there wasa very high rate of business failures and defaults, we would expect the risk premium for ________ bonds to be very high.A) U.S. TreasuryB) corporate AaaC) municipalD) corporate BaaAnswer: DAACSB: Reflective Thinking33) Risk premiums on corporate bonds tend to ________during business cycle expansions and ________ during recessions, everything else held constant.A) increase; increaseB) increase; decreaseC) decrease; increaseD) decrease; decreaseAnswer: CAACSB: Reflective Thinking34) The collapse of the subprime mortgage marketA) did not affect the corporate bond market.B) increased the perceived riskiness of Treasury securities.C) reduced the Baa-Aaa spread.D) increased the Baa-Aaa spread.Answer: DAACSB: Reflective Thinking35) The collapse of the subprime mortgage market increased the spread between Baa and default-free U.S. Treasury bonds. This is due toA) a reduction in risk.B) a reduction in maturity.C) a flight to quality.D) a flight to liquidity.Answer: CAACSB: Analytical Thinking36) During a "flight to quality"A) the spread between Treasury bonds and Baa bonds increases.B) the spread between Treasury bonds and Baa bonds decreases.C) the spread between Treasury bonds and Baa bonds is notaffected.D) the change in the spread between Treasury bonds and Baa bonds cannot be predicted. Answer: AAACSB: Reflective Thinking37) If you have a very low tolerance for risk, which of the following bonds would you be least likely to hold in your portfolio?A) a U.S. Treasury bondB) a municipal bondC) a corporate bond with a rating of AaaD) a corporate bond with a rating of BaaAnswer: DAACSB: Reflective Thinking38) Which of the following statements is TRUE?A) A liquid asset is one that can be quickly and cheaply converted into cash.B) The demand for a bond declines when it becomes less liquid, decreasing the interest rate spread between it and relatively more liquid bonds.C) The differences in bond interest rates reflect differences in default risk only.D) The corporate bond market is the most liquid bond market.Answer: AAACSB: Reflective Thinking39) Corporate bonds are not as liquid as government bonds becauseA) fewer corporate bonds for any one corporation are traded, making them more costly to sell.B) the corporate bond rating must be calculated each timethey are traded.C) corporate bonds are not callable.D) corporate bonds cannot be resold.Answer: AAACSB: Reflective Thinking40) When the Treasury bond market becomes more liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.A) right; rightB) right; leftC) left; rightD) left; leftAnswer: CAACSB: Reflective Thinking41) When the Treasury bond market becomes less liquid, other things equal, the demand curve for corporate bonds shifts to the ________ and the demand curve for Treasury bonds shifts to the ________.A) right; rightB) right; leftC) left; rightD) left; leftAnswer: BAACSB: Reflective Thinking42) A decrease in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________.A) right; rightB) right; leftC) left; leftD) left; rightAnswer: DAACSB: Reflective Thinking43) An increase in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________.A) right; rightB) right; leftC) left; leftD) left; rightAnswer: BAACSB: Reflective Thinking44) A(n) ________ in the liquidity of corporate bonds will ________ the price of corporatebonds and ________ the yield on corporate bonds, all else equal.A) increase; increase; decreaseB) increase; decrease; decreaseC) decrease; increase; increaseD) decrease; decrease; decreaseAnswer: AAACSB: Reflective Thinking45) An increase in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield of Treasury bonds, everything else held constant.A) increase; increaseB) reduce; reduceC) increase; reduceD) reduce; increaseAnswer: AAACSB: Reflective Thinking46) A decrease in the liquidity of corporate bonds will ________ the yield of corporate bonds and ________ the yield of Treasury bonds, everything else held constant.A) increase; increaseB) decrease; decreaseC) increase; decreaseD) decrease; increaseAnswer: CAACSB: Reflective Thinking47) The risk premium on corporate bonds reflects the fact that corporate bonds have a higher default risk and are ________ U.S. Treasury bonds.A) less liquid thanB) less speculative thanC) tax-exempt unlikeD) lower-yielding thanAnswer: AAACSB: Analytical Thinking48) Which of the following statements is TRUE?A) State and local governments cannot default on their bonds.B) Bonds issued by state and local governments are called municipal bonds.C) All government issued bonds—local, state, and federal—are federal income tax exempt.D) The coupon payment on municipal bonds is usually higherthan the coupon payment on Treasury bonds.Answer: BAACSB: Reflective Thinking49) Everything else held constant, if the tax-exempt status of municipal bonds were eliminated, thenA) the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds.B) the interest rate on municipal bonds would equal the rate on Treasury bonds.C) the interest rate on municipal bonds would exceed the rate on Treasury bonds.D) the interest rates on municipal, Treasury, and corporate bonds would all increase. Answer: CAACSB: Reflective Thinking50) Municipal bonds have default risk, yet their interest rates are lower than the rates ondefault-free Treasury bonds. This suggests thatA) the benefit from the tax-exempt status of municipal bonds is less than their default risk.B) the benefit from the tax-exempt status of municipal bonds equals their default risk.C) the benefit from the tax-exempt status of municipal bonds exceeds their default risk.D) Treasury bonds are not default-free.Answer: CAACSB: Reflective Thinking51) Everything else held constant, an increase in marginal tax rates would likely have the effect of ________ the demand for municipal bonds, and ________ the demand for U.S. government bonds.A) increasing; increasingB) increasing; decreasingC) decreasing; increasingD) decreasing; decreasingAnswer: BAACSB: Reflective Thinking52) Everything else held constant, a decrease in marginal tax rates would likely have the effect of ________ the demand for municipal bonds, and ________ the demand for U.S. government bonds.A) increasing; increasingB) increasing; decreasingC) decreasing; increasingD) decreasing; decreasingAnswer: CAACSB: Reflective Thinking53) Everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on Treasury securities whenA) income tax rates are lowered.B) income tax rates are raised.C) municipal bonds become more widely traded.D) corporate bonds become riskier.Answer: AAACSB: Reflective Thinking54) Everything else held constant, if income tax rates were lowered, thenA) the interest rate on municipal bonds would fall.B) the interest rate on Treasury bonds would rise.C) the interest rate on municipal bonds would rise.D) the price of Treasury bonds would fall.Answer: CAACSB: Reflective Thinking55) Everything else held constant, abolishing the individual income tax willA) increase the interest rate on corporate bonds.B) reduce the interest rate on municipal bonds.C) increase the interest rate on municipal bonds.D) increase the interest rate on Treasury bonds.Answer: CAACSB: Reflective Thinking56) Which of the following statements are TRUE?A) An increase in tax rates will increase the demand for Treasury bonds, lowering their interest rates.B) Because the tax-exempt status of municipal bonds was of little benefit to bond holders when tax rates were low, they had higher interest rates than U.S. government bonds before World War II.C) Interest rates on municipal bonds will be higher than comparable bonds without the tax exemption.D) Because coupon payments on municipal bonds are exempt from federal income tax, the expected after-tax return on them will be higher for individuals in lower income tax brackets. Answer: BAACSB: Reflective Thinking57) The Obama administration increased the tax on the top income tax bracket from 35% to 39%. Supply and demand analysis predicts the impact of this change was a ________ interest rate on municipal bonds and a ________ interest rate on Treasury bonds, all else the same.A) higher; lowerB) lower; lowerC) higher; higherD) lower; higherAnswer: DAACSB: Reflective Thinking58) Three factors explain the risk structure of interest ratesA) liquidity, default risk, and the income tax treatment of a security.B) maturity, default risk, and the income tax treatment of a security.C) maturity, liquidity, and the income tax treatment of a security.D) maturity, default risk, and the liquidity of a security.Answer: AAACSB: Application of Knowledge59) The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression years 1930-1933. Explain this difference using the bond supply and demand analysis.Answer: During the Great Depression many businesses failed. The default risk for the corporate bond increased compared to the default-free Treasury bond. The demand for corporate bonds decreased while the demand for Treasury bonds increased resulting in a larger risk premium.AACSB: Reflective Thinking60) If the federal government where to raise the income tax rates, would this have any impact ona state's cost of borrowing funds? Explain.Answer: Yes, if the federal government raises income taxrates, demand for municipal bonds which are federal income tax exempt would increase. This would lower the interest rate on the municipal bonds thus lowering the cost to the state of borrowing funds.AACSB: Reflective Thinking6.2 Term Structure of Interest Rates1) The term structure of interest rates isA) the relationship among interest rates of different bonds with the same maturity.B) the structure of how interest rates move over time.C) the relationship among the term to maturity of different bonds.D) the relationship among interest rates on bonds with different maturities.Answer: DAACSB: Reflective Thinking2) A plot of the interest rates on default-free government bonds with different terms to maturity is calledA) a risk-structure curve.B) a default-free curve.C) a yield curve.D) an interest-rate curve.Answer: CAACSB: Application of Knowledge3) Differences in ________ explain why interest rates on Treasury securities are not all the same.A) riskB) liquidityC) time to maturityD) tax characteristicsAnswer: CAACSB: Analytical Thinking4) The typical shape for a yield curve isA) gently upward sloping.B) mound shaped.C) flat.D) bowl shaped.Answer: AAACSB: Analytical Thinking5) When yield curves are steeply upward slopingA) long-term interest rates are above short-term interest rates.B) short-term interest rates are above long-term interest rates.C) short-term interest rates are about the same as long-term interest rates.D) medium-term interest rates are above both short-term and long-term interest rates. Answer: AAACSB: Reflective Thinking6) When yield curves are flatA) long-term interest rates are above short-term interest rates.B) short-term interest rates are above long-term interest rates.C) short-term interest rates are about the same as long-term interest rates.D) medium-term interest rates are above both short-term and long-term interest rates. Answer: CAACSB: Reflective Thinking7) When yield curves are downward slopingA) long-term interest rates are above short-term interest rates.B) short-term interest rates are above long-term interest rates.C) short-term interest rates are about the same as long-term interest rates.D) medium-term interest rates are above both short-term and long-term interest rates. Answer: BAACSB: Reflective Thinking8) An inverted yield curveA) slopes up.B) is flat.C) slopes down.D) has a U shape.Answer: CAACSB: Application of Knowledge9) Economists' attempts to explain the term structure of interest ratesA) illustrate how economists modify theories to improve them when they are inconsistent with the empirical evidence.B) illustrate how economists continue to accept theories that fail to explain observed behavior of interest rate movements.C) prove that the real world is a special case that tends to get short shrift in theoretical models.D) have proved entirely unsatisfactory to date.Answer: AAACSB: Reflective Thinking10) According to the expectations theory of the term structure, the interest rate on a long-term bond will equal the ________ of the short-term interest rates that people expect tooccur over the life of the long-term bond.A) averageB) sumC) differenceD) multipleAnswer: AAACSB: Analytical Thinking11) If bonds with different maturities are perfect substitutes, then the ________ on these bonds must be equal.A) expected returnB) surprise returnC) surplus returnD) excess returnAnswer: AAACSB: Analytical Thinking12) If the expected path of one-year interest rates over the next five years is 4 percent, 5 percent, 7 percent, 8 percent, and 6 percent, then the expectations theory predicts that today's interest rate on the five-year bond isA) 4 percent.B) 5 percent.C) 6 percent.D) 7 percent.Answer: CAACSB: Analytical Thinking13) If the expected path of 1-year interest rates over the next four years is 5 percent, 4 percent, 2 percent, and 1 percent, then the expectations theory predicts that today's interest rate on the four-year bond isA) 1 percent.C) 3 percent.D) 4 percent.Answer: CAACSB: Analytical Thinking14) If the expected path of 1-year interest rates over the next five years is 1 percent, 2 percent, 3 percent, 4 percent, and 5 percent, the expectations theory predicts that the bond with the highest interest rate today is the one with a maturity ofA) two years.B) three years.C) four years.D) five years.Answer: DAACSB: Analytical Thinking15) If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 percent, the expectations theory predicts that the bond with the lowest interest rate today is the one with a maturity ofA) one year.B) two years.C) three years.D) four years.Answer: AAACSB: Analytical Thinking16) Over the next three years, the expected path of 1-year interest rates is 4, 1, and 1 percent. The expectations theory of the term structure predicts that the current interest rate on 3-year bond isA) 1 percent.C) 3 percent.D) 4 percent.Answer: BAACSB: Analytical Thinking17) According to the expectations theory of the term structureA) the interest rate on long-term bonds will exceed the average of short-term interest rates that people expect to occur over the life of the long-term bonds, because of their preference for short-term securities.B) interest rates on bonds of different maturities move together over time.C) buyers of bonds prefer short-term to long-term bonds.D) buyers require an additional incentive to hold long-term bonds.Answer: BAACSB: Reflective Thinking18) According to the expectations theory of the term structureA) when the yield curve is steeply upward sloping, short-term interest rates are expected to remain relatively stable in the future.B) when the yield curve is downward sloping, short-term interest rates are expected to remain relatively stable in the future.C) investors have strong preferences for short-term relative to long-term bonds, explaining why yield curves typically slope upward.D) yield curves should be equally likely to slope downward as slope upward.Answer: DAACSB: Reflective Thinking19) According to the segmented markets theory of the term structureA) bonds of one maturity are close substitutes for bonds of other maturities, therefore, interest rates on bonds of different maturities move together over time.B) the interest rate for each maturity bond is determined by supply and demand for that maturity bond.C) investors' strong preferences for short-term relative to long-term bonds explains why yield curves typically slope downward.D) because of the positive term premium, the yield curve will not be observed to be downward-sloping.Answer: BAACSB: Reflective Thinking20) According to the segmented markets theory of the term structureA) the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds.B) buyers of bonds do not prefer bonds of one maturity over another.C) interest rates on bonds of different maturities do not move together over time.D) buyers require an additional incentive to hold long-term bonds.Answer: CAACSB: Reflective Thinking21) A key assumption in the segmented markets theory is that bonds of different maturities。
高级商务英语4 Unit 1 Key 答案
Unit 1Business EthicsLead-in1.Discussion1)Ethics, also known as moral philosophy, is a branch of philosophy that involvessystematizing, defending, and recommending concepts of right and wrong conduct. In philosophy, ethics studies the moral behavior in humans, and how one should act.2)Ethics to consider in business:1) Ethics about business input:This involves ethics in gaining resources, forinstance purchasing equipments, r aising fund, recruiting staff…2) Ethics about business process:This involves ethical practice in R&D,production, administration, finance, marketing, HR management, logistics…3) Ethics about business output:This involves ethical practice in providingquality products, service, etc and dealing with waste properly and protecting environment.2.A Mini Case1)The local people claimed three things: a) There’s a decrease in the amount ofwater available to them and Coca-Cola was to blame; b) Their livelihood has been destroyed since the building of the plant; c) the number of people working on the land has dropped considerably.2)Coca-Cola claimed that its waste sludge was a useful fertilizer.3)Coca-Cola claimed that the reports were scurrilous. Its response was veryarrogant and offensive.Text AOnly the Ethical SurviveExercisesI.Reading Comprehension1.Determine whether the following statements are true or false based on theinformation you get from the text. Write a T for true, an F for false, and an NGfor not given.1) F 2) T 3) NG 4) T 5) T 6) NG 7) T 8) T2. Discuss the following questions with your partner.1)Management should be ethical in making decisions. Price reasonably. Do notexploit the labor force. Produce quality products. Be ethical while pursuing profit.Encourage ethical behaviors and gain support from staff.2)Research hints: KFC’s ―Sudan Red‖ crisis; Siemens’ bribery scandal;Coca-Cola’s Poisoning Orange Juice; Toyota’s product recall, etc.II.Blank-fillingplete the following sentences with the words or phrases given in the box.Change the form when necessary.1) levy 2) Peer 3) hires 4) were thrust5) accountability 6) instinct 7) subnormal 8) manuals2.Find the synonyms for the words or phrases in the brackets from the text and fillin the blanks with the proper forms of the words you’ve found.1) remedy 2) aligned 3) anonymous 4) policing5) emulate 6) analogy 7) override 8) ubiquitousIII.Paraphrasing1.Rewrite the following sentences with the words or phrases given in the brackets,keeping the meaning unchanged.1)In fact, it is what the management actually does that decides a company’sculture because staff would imitate and follow their leaders’ behavior.2)Employees need to know that those people who have behaved ethically shouldbe recognized and promoted by the company, though it may mean extra expense in the short run. In contrast, those who have demonstrated unethical behavior will be dismissed or be held responsible for their behavior in certain ways.3)Instead of fixing the current problem, they recalled all products, not just thosein the area where the problem took place, and then they launched the fake product prevention seal which is omnipresent now. Accordingly, they continued to get greater market share and higher customer loyalty.4)Wiles was famous for his effective concentration of the company business onfive key objectives each quarter and for his persistent pursuit of the five goals.He encouraged staff to try every means to accomplish their goals.5)If employees do not trust their leaders, they would prioritize their individualinterest. As a result, there’ll be huge cost in poor operation, company disorder, and in restructuring.2.Rewrite the following sentences in your own words.1)Staff sometimes will protect top managers or even forgive them for theirunethical behavior because it would be destructive if they leave the company.However, the fact is that company leaders should stick to highest standards of ethics.2)If the original company who charges extraordinarily high price had started tooperate more ethically with an average rate of return, then it would not suffer greater cost (losses or even being wiped out of the industry) unless it works efficiently (which is almost impossible).3)At the beginning, Wiles’ strategy helped improve company performance,boost sales and gain market-share. However, as there’s more pressure to achieve the objectives at any expense, staff began to behave carelessly with improper behaviors.4)At first, Intel did not admit the problem, causing both financial losses andreputation losses for the company. Yet Intel finally took the right approach and solved the problem with a relatively mild cost. In fact, very few Pentium processors were returned.5)Due to the omnipresent, prompt and unidentified communication provided bythe Internet, excessive unethical practices can be easily found and spread at low cost or even no cost.IV.Translation1.Sentence Translation1)当然，每个员工要对自己的行为负责。
商务英语复习题及答案
商务英语复习题及答案第一篇：商务英语复习题及答案商务英语复习资料Section ⅠDirections: fill in the blanks with the appropriate word.1.When granting(按揭贷款)loan to individuals, banks should closely evaluateany assets being put up as collateral.2.A tax（避税地）is a place where certain taxes are levied at a low rate or not at all.3.A joint(合资企业)(often abbreviated JV)is an entity formed between two ormore parties to undertake economic activity nd （地产储备）is the practice of purchasing land with the intent to hold on toit until such a time as it is highly profitable to sell it on to others for substantially more thanwas initially paid.5.Banks provide loan（过渡性贷款）to help the borrowers to bridge the gap in timebetween buying a new house and selling the old house.6.Averages are of two kinds：average（一般海损）and particular average.7.A golden(金降落伞)is a clause(or several)in an executive’s employmentcontract specifying that they will receive certain significant benefits if their employment isterminated when their company is acquired.8.Different companies in different nations will have their own advantages，which decide theirpositions in the world industrial.(产业链)9.The exchange（比价）today is 300 Japanese yen to thepanies that sell world-wide have benefited from economies of（规模经济）11.(保证金)money is money given to the seller as a first payment by the buyer toshow that he agrees to the contract of sale and intends to honor it.12.The rate（比价）today is 300 Japanese yen to the pound.13.(不清洁提单)B/L is one into which the ship-owners have put a clause stating that theconditions of the goods or packing when received were unsatisfactory.14.A note(贷项通知单)is a monetary instrument issued by a seller that allows abuyer to purchase an item or service from that seller on a future date.15.(国际贸易术语解释通则)are a set of international rules published by theInternational Chamber of Commerce，Paris，for deciding the exact meaning of the chief termsused in foreign-trade contracts.Sectio n ⅡDirections: translate the following terms and expressions from Chinese into English.2.百货批发（general wholesale）3.半成品（semi-finished product或intermediate goods）4.报关（declare sth at customs或apply to customs）5.不冻港（ice-free port或open port）6.法人（artificial person或legal person或legal entity）7.多式联运（multimodaltransport或forwarding）8.多米诺(骨牌)效应（domino effect）9.集装箱（container）10.AA制（go Dutch 或go fifty-fifty）11.处理价（bargain price或reduced price）12.报盘（quotation）13.净重（net weight）14.唛头（shipping marks）15.不可抗力（an act ofGod与force majeure）16.代理人（man of business）17.舱位（shipping space）18.1.跨国公司（multinational company或transnational corporation或MNC）超前消费（excessive consumption）Section ⅢDirections: translate the following terms and expressions from English into Chinese.1.go Dutch（AA制）2.force majeure （不可抗力）3.best-seller（畅销）4.shelf life（pull date保质期）5.BRIC group（金砖四国） weight（净重）7.bill of exchange（draft汇票）8.trade quotas（贸易配额）9.adverse balance（逆差）10.bar code（条形码）11.offer（报价或报盘）12.pyramid selling（传销）13.counter-offer（还价或还盘）14.domino effect（多米诺骨牌效应）15.artificial person（legal person法人）16.down-market goods（低档货）17.Bretton Woods system（布雷顿森林体系18.cash on delivery（货到付款）19.futures market（期货市场）20.break even（收支平衡）Section ⅣDirections: translate the following sentences from Chinese into English.1.我们通常用个案分析为客户提供咨询服务。
(完整word版)国际财务管理课后习题答案chapter9
CHAPTER 9 MANAGEMENT OF ECONOMIC EXPOSURESUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTERQUESTIONS AND PROBLEMSQUESTIONS1. How would you define economic exposure to exchange risk?Answer: Economic exposure can be defined as the possibility that the firm’s cash flows and thus its market value may be affected by the unexpected exchange rate changes.2. Explain the following statement: “Exposure is the regression coefficient.”Answer: Exposure to currency risk can be appropriately measured by th e sensitivity of the firm’s future cash flows and the market value to random changes in exchange rates. Statistically, this sensitivity can be estimated by the regression coefficient. Thus, exposure can be said to be the regression coefficient.3. Suppose that your company has an equity position in a French firm. Discuss the condition under which the dollar/franc exchange rate uncertainty does not constitute exchange exposure for your company.Answer: Mere changes in exchange rates do not necessarily constitute currency exposure. If the French franc value of the equity moves in the opposite direction as much as the dollar value of the franc changes, then the dollar value of the equity position will be insensitive to exchange rate movements. As a result, your company will not be exposed to currency risk.4. Explain the competitive and conversion effects of exchange rate changes on the firm’s operating cash flow.Answer: The competitive effect: exchange rate changes may affect operating cash flows by altering the firm’s competitive position.The conversion effect: A given operating cash flows in terms of a foreign currency will be converted into higher or lower dollar (home currency)amounts as the exchange rate changes.5. Discuss the determinants of operating exposure.Answer: The main determinants of a firm’s operating exposure are (1) the structure of the markets in which the firm sources its inputs, such as labor and materials, and sells its products, and (2) the firm’s ability to mitigate the effect of exchange rate changes by adjusting its markets, product mix, and sourcing.6. Discuss the implications of purchasing power parity for operating exposure.Answer: If the exchange rate changes are matched by the inflation rate differential between countries, firms’ competitive positions will not be altered by exchange rate changes. Firms are not subject to operating exposure.7. General Motors exports cars to Spain but the strong dollar against the peseta hurts sales of GM cars in Spain. In the Spanish market, GM faces competition from the Italian and French car makers, such as Fiat and Renault, whose currencies remain stable relative to the peseta. What kind of measures would you recommend so that GM can maintain its market share in Spain.Answer: Possible measures that GM can take include: (1) diversify the market; try to market the cars not just in Spain and other European countries but also in, say, Asia; (2) locate production facilities in Spain and source inputs locally; (3) locate production facilities, say, in Mexico where production costs are low and export to Spain from Mexico.8. What are the advantages and disadvantages of financial hedging of the firm’s operating exposure vis-à-vis operational hedges (such as relocating manufacturing site)?Answer: Financial hedging can be implemented quickly with relatively low costs, but it is difficult to hedge against long-term, real exposure with financial contracts. On the other hand, operational hedges are costly, time-consuming, and not easily reversible.9. Discuss the advantages and disadvantages of maintaining multiple manufacturing sites as a hedge against exchange rate exposure.Answer: To establish multiple manufacturing sites can be effective in managing exchange risk exposure, but it can be costly because the firm may not be able to take advantage of the economy of scale.10. Evaluate the following statement: “A firm can reduce its currency exposure by diversifying across different business lines.”Answer: Conglomerate expansion may be too costly as a means of hedging exchange risk exposure. Investment in a different line of business must be made based on its own merit.11. The exchange rate uncertainty may not necessarily mean that firms face exchange risk exposure. Explain why this may be the case.Answer: A firm can have a natural hedging position due to, for example, diversified markets, flexible sourcing capabilities, etc. In addition, to the extent that the PPP holds, nominal exchange rate changes do not influenc e firms’ competitive positions. Under these circumstances, firms do not need to worry about exchange risk exposure.PROBLEMS1. Suppose that you hold a piece of land in the City of London that you may want to sell in one year. As a U.S. resident, you are concerned with the dollar value of the land. Assume that, if the British economy booms in the future, the land will be worth £2,000 and one British pound will be worth $1.40. If the British economy slows down, on the other hand, the land will be worth less, i.e., £1,500, but the pound will be stronger, i.e., $1.50/£. You feel that the British economy will experience a boom with a 60% probability and a slow-down with a 40% probability.(a) Estimate your exposure b to the exchange risk.(b) Compute the variance of the dollar value of your property that is attributable to the exchange rate uncertainty.(c) Discuss how you can hedge your exchange risk exposure and also examine the consequences of hedging.Solution: (a) Let us compute the necessary parameter values:E(P) = (.6)($2800)+(.4)($2250) = $1680+$900 = $2,580E(S) = (.6)(1.40)+(.4)(1.5) = 0.84+0.60 = $1.44Var(S) = (.6)(1.40-1.44)2 + (.4)(1.50-1.44)2= .00096+.00144 = .0024.Cov(P,S) = (.6)(2800-2580)(1.4-1.44)+(.4)(2250-2580)(1.5-1.44)= -5.28-7.92 = -13.20b = Cov(P,S)/Var(S) = -13.20/.0024 = -£5,500.You have a negative exposure! As the pound gets stronger (weaker) against the dollar, the dollar value of your British holding goes down (up).(b) b2Var(S) = (-5500)2(.0024) =72,600($)2(c) Buy £5,500 forward. By doing so, you can eliminate the volatility of the dollar value of your British asset that is due to the exchange rate volatility.2. A U.S. firm holds an asset in France and faces the following scenario:In the above table, P* is the euro price of the asset held by the U.S. firm and P is the dollar price of the asset.(a) Compute the exchange exposure faced by the U.S. firm.(b) What is the variance of the dollar price of this asset if the U.S. firm remains unhedged against thisexposure?(c) If the U.S. firm hedges against this exposure using the forward contract, what is the variance of thedollar value of the hedged position?Solution: (a)E(S) = .25(1.20 +1.10+1.00+0.90) = $1.05/€E(P) = .25(1,800+1,540+1,300 +1,080) = $1,430Var(S) = .25[(1.20-1.05)2 +(1.10-1.05)2+(1.00-1.05)2+(0.90-1.05)2]= .0125Cov(P,S) = .25[(1,800-1,430)(1.20-1.05) + (1,540-1,430)(1.10-1.05)(1,300-1,430)(1.00-1.05) + (1,080-1,430)(0.90-1.05)]= 30b = Cov(P,S)/Var(S) = 30/0.0125 = €2,400.(b) Var(P) = .25[(1,800-1,430)2+(1,540-1,430)2+(1,300-1,430)2+(1,080-1,430)2]= 72,100($)2.(c) Var(P) - b2Var(S) = 72,100 - (2,400)2(0.0125) = 100($)2.This means that most of the volatility of the dollar value of the French asset can be removed by hedging exchange risk. The hedging can be achieved by selling €2,400 forward.MINI CASE: ECONOMIC EXPOSURE OF ALBION COMPUTERS PLCConsider Case 3 of Albion Computers PLC discussed in the chapter. Now, assume that the pound is expected to depreciate to $1.50 from the current level of $1.60 per pound. This implies that the pound cost of the imported part, i.e., Intel’s microprocessors, is £341 (=$512/$1.50). Other variables, such as the unit sales volume and the U.K. inflation rate, remain the same as in Case 3.(a) Compute the projected annual cash flow in dollars.(b) Compute the projected operating gains/losses over the four-year horizon as the discounted present value of change in cash flows, which is due to the pound depreciation, from the benchmark case presented in Exhibit 12.4.(c) What actions, if any, can Albion take to mitigate the projected operating losses due to the pound depreciation?Suggested Solution to Economic Exposure of Albion Computers PLCa) The projected annual cash flow can be computed as follows:______________________________________________________Sales (40,000 units at £1,080/unit) £43,200,000Variable costs (40,000 units at £697/unit) £27,880,000Fixed overhead costs 4,000,000Depreciation allowances 1,000,000Net profit before tax £15,315,000Income tax (50%) 7,657,500Profit after tax 7,657,500Add back depreciation 1,000,000Operating cash flow in pounds £8,657,500Operating cash flow in dollars $12,986,250______________________________________________________b) ______________________________________________________Benchmark CurrentVariables Case Case______________________________________________________Exchange rate ($/£) 1.60 1.50Unit variable cost (£) 650 697Unit sales price (£) 1,000 1,080Sales volume (units) 50,000 40,000Annual cash flow (£) 7,250,000 8,657,500Annual cash flow ($) 11,600,000 12,986,250Four-year present value ($) 33,118,000 37,076,946Operating gains/losses ($) 3,958,946______________________________________________________c) In this case, Albion actually can expect to realize exchange gains, rather than losses. This is mainly due to the fact that while the selling price appreciates by 8% in the U.K. market, the variable cost of imported input increased by about 6.25%. Albion may choose not to do anything.。
2001 专八真题 附带答案解析
2001年英语专八考试试卷及答案Part Ⅰ Listening Comprehension (40 min)In Sections A, B and C you will hear everything ONCE ONLY. Listencarefully a nd then answer the questions that follow. Mark the correct response to each ques tion on your Coloured Answer Sheet.SECTION A TALKQuestions 1 to 5 refer to the talk in this section. At the end ofthe talk you w ill be given 15 seconds to answer each of the following five questions. Now list en to the talk.1. Changes in the size of the World Bank’ s operations refer to ___.A. the expansion of its loan programmeB. the inclusion of its hard loansC. the inclusion of its soft loansD. the previous lending policies2. What actually made the Bank change its overall lending strategy?A. Reluctance of people in poor countries to have small families.B. Lack of basic health services and inequality in income distribution.C. The discovery that a low fertility rate would lead to economicdevelopment.D. Poor nutrition and low literacy in many poor countries of the world.3. The change in emphasis of the Bank’s lending policies meant that the Bank would ___.A. be more involved in big infrastructure projectsB. adopt similar investment strategies in poor and rich countriesC. embark upon a review of the investment in huge dams and steel millsD.invest in projects that would benefit the low-incomesector of society4. Which of the following is NOT a criticism of the bank?A. Colossal travel expenses of its staff.169B. Fixed annual loans to certain countries.C. Limited impact of the Bank’s projects.D. Role as a financial deal maker.5. Throughout the talk, the speaker is ___ while introducing the Wor ld Bank.A. biasedB. unfriendlyC. objectiveD. sensationalSECTION B CONVERSATIONQuestions 6 to 10 are based on a conversation. At the end of the conversation yo u will be given 15 seconds to answer the question.Now listen to the conversatio n.6. The man sounds surprised at the fact that ___.A. many Australians are taking time off to travelB. the woman worked for some time in New ZealandC. the woman raised enough money for travelD. Australians prefer to work in New Zealand7. We learn that the woman liked Singapore mainly because of its___.A. cleannessB. multi-ethnicityC. modern characteristicsD. shopping opportunities8. From the conversation we can infer that Kaifeng and Yinchuan impressed the woman with their ___A. respective locationsB. historic interestsC. ancient tombsD. Jewish descendants9. Which of the following words can best describe the woman’s feelings a bout Tibet?A. Amusement.170B. Disbelief.C. Ecstasy.D. Delig ht10. According to the conversation, it was___that made the woman ready to stop traveling.A. the unsettledness of travelB. the difficulties of trekkingC. the loneliness of travelD. the unfamiliar environmentSECTION C NEWS BROADCASTQuestions 11 and 12 are based on the following news. At the end ofthe news item , you will be given 30 seconds to answer the questions. Now listen to the news.11. Mike Tyson was put in prison last August because he ___.A. violated the traffic lawB. illegally attacked a boxerC. attacked sb. after a traffic accidentD. failed to finish his contract12. The license granted to Tyson to fight will be terminated ___.A. by the end of the yearB. in over a yearC. in AugustD. in a few weeksQuestion 13 is based on the following news. At the end of the newsitem, you wil l be given 15 seconds to answer the question. Now listen to the news.13. The Russian documents are expected to draw great attention because ___.A. they cover the whole story of the former US presidentB. the assassin used to live in the former Soviet unionC. they are the only official documents released about KennedyD. they solved the mystery surrounding Kennedy’s assassination171Question 14 and 15 are based on the following news. At the end ofthe news item,you will be given 30 seconds to answer the questions. New listento the news.14. In the recent three months, Hong Kong’s unemployment rate has ___.A. increased slowlyB. decreased graduallyC. stayed steadyD. become unpredictable15. According to the news, which of the following statements is TRUE?A. Business conditions have worsened in the past three months.B. The past three months have seen a declining trend in job offers.C. The rise of unemployment rate in some sectors equals the fall in others.D. The unemployment rate in all sectors of the economy remains unchanged.SECTION D NOTE-TAKING AND GAP-FILLINGFill each of gaps with ONE word. You may refer to your notes. Makesure the word you fill in is both grammatically and semanticallyacceptable.The Press ConferenceThe press conference has certain advantages. The first advantage lies with the(1)___ nature of the event itself; public officials are supposed to 1.___submit to scrutiny by responding to various questions at a press conference.Secondly, statements previously made at a press conference can be used as a(2)___ in judging following statements or policies. Moreover, in case 2.___of important events, press conferences are an effective way to break the news to groups of reporters.172However, from the point of view of (3)___, the press conference 3.___possesses some disadvantages, mainly in its(4)___ and news source.4.___The provider virtually determines the manner in which a pressconference proceeds. This, sometimes, puts news reporters at a(n)(5)___ , as can 5.___be seen on live broadcasts of news conferences. Factors in getting valuable information preparation: a need to keep up to date on journalistic subject matter;―(6)___ of the news source: 6.___1 ) news source’ s (7)___ to 7.___provide information;2)news-gathering methods.Conditions under which news reporters cannot trust the informationprovided by a news source― not knowing the required information;― knowi ng and willing to share the information, but without(8)___skills; 8.___― knowing the information, but unwilling to share;― willing to share, but unable to recall.(9)___ of questions asked 9.___Ways of improving the questions:no words with double meanings;no long questions;― specific time, place, etc.;― (10)___ questions; 10.___― clear alternatives, or no alternatives in answers.改错Part Ⅱ Proofreading and Error Correction (15 min) The following passage contains TEN errors. Each line containsa maximum of ONE error. In each case, only ONE word is involved.You should proofread the passage and correct it in the following way. For a wrong word, underline the wrong word and wri te thecorrect one in the blank provided at the end of the line. For a missing word, mark the position of the missing word with a173“∧” sign and write the word you believe to be missing in the blank provided at the end of the line. For an unnecessary wordcross out the unnecessary word with a slash “/’ and put the wordin the blank provided at the end of the line. ExampleWhen∧art museum wants a new exhibit, (1) an it never ／ buys things in finished form and hangs (2) never them on the wall. When a natural history museum wants an exhibition, it must often build it. (3) exhibitDuring the early years of this century, wheat was seen as thevery lifeblood of Western Canada. People on city streets watchedthe yields and the price of wheat in almost as much feeling as if1.___they were growers. The marketing of wheat became an increasing 2.___favorite topic of conversation.War set the stage for the most dramatic events in marketingthe western crop. For years, farmers mistrusted speculative grainselling as carried on through the Winnipeg Grain Exchange.Wheat prices were generally low in the autumn, so farmers could 3.___not wait for markets to improve. It had happened too often thatthey sold their wheat soon shortly after harvest when farm debts4.___were coming due, just to see prices rising and speculators gettingrich. 5.___On various occasions, producer groups, asked firmer control, 6.___but the government had no wish to become involving, at 7.___least not until wartime when wheat prices threatened to runwild.Anxious to check inflation and rising life costs, the federal8.___government appointed a board of grain supervisors to deal withdeliveries from the crops of 1917 and 1918. Grain Exchangetrading was suspended, and farmers sold at prices fixed by theboard. To handle with the crop of 1919, the government 9.___appointed the first Canadian Wheat Board, with total authority to17410.___buy, sell, and set prices.阅读理解 APart Ⅲ Reading Comprehension (40 min)编辑本段回目录SECTION A READING COMPREHENSION (30 min)In this section there are four reading passages followed by a total of fifteen multiple-choice questions. Read the passages and thenmark answers on your Coloured Answer Sheet.TEXT A“Twenty years ago, Blackpool turned its back on the sea andtried to make i tself into an entertainment centre. ” say Robin Wood, a local official. “Now t he thinking is that we should try,to refocus on the sea and make Blackpool a fami ly destination again.” To say that Blackpool neglected the sea is to put it mil d ly. In 1976 the European Community, as it then was called, instructed member nati ons to make their beaches conform to certain minimum standards of cleanliness wi thin ten years. Britain, rather thancomplying, took the novel strategy of conte nding that many of its most popular beaches were not swimming beaches at all. Be causeof Britain’s climate the sea-bathing season is short, and most people don ’t go in above their knees anyway-and hence can’t really be said to be swimming. By averaging out the number of people actually swimming across 365 days of the y ear, the government was able to persuade itself, if no one else, that Britain ha d hardly any real swimming beaches.As one environmentalist put it to me: “You had the ludicroussituation in w hich Luxembourg had mere listed public bathing beaches than the whole of the Uni ted Kingdom. It was preposterous.”Meanwhile, Blackpool continued to discharge raw sewage straight into the se a. Finally after much pressure from bothenvironmental groups and the European U nion, the local water authority built a new waste-treatment facility for the who le of Blackpool and neighbouring communities. The facility came online in June 1 996. For the first time since the industrial revolution Blackpool’s waters are safe to swim in.175That done, the town is now turning its attention to making the sea-front me re visually attractive. The promenade, once a rather elegant place to stroll, ha d become increasingly tatty and neglected. “It was built in Victorian times and needed a thorough overhaul anyway, ”says Wood, “so we decided to make aestheti c improvements at thesame time, to try to draw people back to it.” Bla ckpool rec e ntly spent about .4 million building new kiosks for vendors and improving seat ing around the Central Pier and plans to spend a further$ 15 million on various amenity projects.The most striking thing about Blackpool these days compared with 20 years a go is how empty its beaches are. When the tide is out, Blackpool’s beaches are a vast plain of beckoning sand. They look spaciousenough to accommodate comforta bly the entire populace of northernEngland. Ken Welsby remembers days when, as he puts it, “ you couldn’t lay down a handkerchief on this beach, it was that c rowded.”Welsby comes from Preston, 20 miles down the road, and has been visiting Bl ackpool all his life. Now retired, he had come forthe day with his wife, Kitty, and their three young grandchildrenwho were gravely absorbed in building a san dcastle. “Two hundredthousand people they’d have on this beach sometimes.” W elsby said. “You can’t imagine it now, can you?”Indeed I could not. Though it was a bright sunny day in the middle of summe r. I counted just 13 people scattered along a halfmile or so of open sand. Exce pt for those rare times when hot weather and a public holiday coincide, it is li ke this nearly alwaysnow.“You can’t imagine how exciting it was to come here for the day when we w er e young.” Kitty said. “Even from Preston, it was a big treat.Now children don ’t want the beach. They want arcade games and rides in helicoptersand goodness kn ows what else.” She stared out over the glitterywater. “We’ll never see thos e days again. It’s sad really.”“But your grandchildren seem to be enjoying it,” I pointedout.176“For the moment, ”Ken said. “For the moment.”Afterward I went for a long walk along the empty beach, thenwent back to th e town centre and treated myself to a large portion of fish-and-chips wrapped in paper. The way they cook it in Blackpool, it isn’t so much a meal as an invita t ion to a heart attack, but it wasdelicious. Far out over the sea the sun was se tting with such splendor that I would almost have sworn I could hear the water h isswhere it touched.Behind me the lights of Blackpool Tower were just twinkling on, and the str eets were beginning to fill with happy evening throngs. In the purply light of d usk the town looked peaceful and happy ― enchanting even ― and there was an engaging air of expectancy, of fun about to happen. Somewhat to my surprise, I r ealized that this place was beginning to grow on me.16. At the beginning, the passage seems to suggest that Blackpool___.A. will continue to remain as an entertainment centreB. complied with EC’s standards of clearlinessC. had no swimming beaches all alongD. is planning to revive its former attraction17. We can learn from the passage that Blackpool used to ___.A. have as many beaches as LuxumbourgB. have seriously polluted drinking waterC. boast some imposing seafront sightsD. attract few domestic holiday makers18. What Blackpool’s beaches strike visitors most is their ___.A. emptinessB. cleanlinessC. modernityD. monotonyTEXT BPundits who want to sound judicious are fond of warning against generalizin g. Each country is different, they say, and no onestory fits all of Asia. This is, of course, silly: all of these economies plunged into economic crisis within a few months of each o177ther, so they must have had something in common.In fact, the logic of catastrophe was pretty much the same inThailand, Mal aysia, Indonesia and South Korea. (Japan is a verydifferent story. ) In each ca se investors――mainly, but not entirely, foreign banks who had made short-term loans――all tried to pull their money out at the same time. The result wasa co mbined banking and currency crisis: a banking crisis becauseno bank can convert all its assets into cash on short notice; acurrency crisis because panicked in vestors were trying not only to convert long-term assets into cash, but to conve rt baht or rupiah into dollars. In the face of the stampede, governments had no good options. If they let their currencies plunge inflation would soar and compa nies that had borrowed in dollars would go bankrupt;if they tried to support th eir currencies by pushing up interestrates, the same firms would probably go bu st from the combination of debt burden and recessi on. In practice, countries’ s plit the difference―― and paid a heavy price regardless.Was the crisis a punishment for bad economic management? Likemost cliches, the catchphrase“ crony capitalism” has prospered because it gets at something real: excessively cozy relationships between government and business really did l ead to a lot of bad investments. The still primitive financial structure of Asia n business also made the economiespeculiarly vulnerable to a loss of confidence . But the punishmentwas surely disproportionate to the crime, and many investme nts that look foolish in retrospect seemed sensible at the time.Given that there were no good policy options, was the policyresponse mainl y on the fight track? There was frantic blame-shifting when everything in Asia s eemed to be going wrong: now there is a race to claim credit when some things ha ve started to go right. The international Monetary Fund points to Korea’s recov e ry―― and more generally to the fact that the sky didn’t fall a fter all ―― a s proof that its policy recommendations were right. Never mind that other IMF cli ents have done far worse,and that the economy of Malaysia ―― which refused IM F help, and horrified respectable opinion by imposing capital controls ――also seems to be on the mend. Malaysia’s prime Minister, by contrast, claims full cr e dit for any good n178ews――even though neighbouring economies also seem to have bo ttomed out.The truth is that an observer without any ax to grind would probably concl ude that none of the policies adopted either on or in defiance of the IMF’s adv i ce made much difference either way. Budget policies, interest rate policies, ban king reform ―― whatever countries tried,just about all the capital that could flee, did. And when there was no mere money to run, the natural recuperative powers of the economies finally began to prevail. At best, the money doctors whop urported to offer cures provided a helpful bedside manner; at worst, they were l ike medieval physicians who prescribed bleeding as a remedy for all ills.Will the patients stage a full recovery? It depends on exactly what you me an by “full”. South Korea’s industrial production is already above its pre-cr isi s level; but in the spring of 1997 anyone who had predicted zero growth in Korea n industry over the next two years would have been regarded as a reckless doomsa yer. So if by recovery you mean not just a return to growth, but one that brings the region’s performance back to something like what people used to regard asthe Asian norm, they have a long way to go.19. According to the passage, which of the following is NOT the writer’s opinion?A. Countries paid a heavy price for whichever measure taken.B. Countries all found themselves in an economic dilemma.C. Withdrawal of foreign capital resulted in the crisis.D. Most governments chose one of the two options.20. The writer thinks that those Asian countries ___.A. well deserved the punishmentB. invested in a senseless way at the timeC. were unduly punished in the crisisD. had bad relationships between government and business21. It can be inferred from the passage that IMF policy recommendations ___.179A. were far from a panacea in all casesB. were feasible in their recipient countriesC. failed to work in their recipient countriesD. were rejected unanimously by Asian countries22. At the end of the passage, the writer seems to think that a full reco very of the Asian economy is ___.A. dueB. remoteC. imaginativeD. unpredictableTEXT CHuman migration: the term is vague. What people usually think of is the per manent movement of people from one home to another. More broadly, though, migrat ion means all the ways――from the seasonal drift of agricultural workers within a countryto the relocation of refugees from one country to another.Migration is big, dangerous, compelling. It is 60 million Europeans leaving home from the 16th to the 20th centuries. It is some 15 million Hindus, Skihs, and Muslims swept up in a tumultuous shuffle of citizens between India and Pakis tan after the partitionof the subcontinent in 1947.Migration is the dynamic undertow of population change: everyone’s solutio n , everyone’s conflict. As the century turns, migration, with its inevitable eco n omic and political turmoil, has been called “ one of the greatest challenges of the coming century.”But it is much more than that. It is, as has always been, thegreat adventu re of human life. Migration helped create humans, drove us to conquer the planet , shaped our societies, and promisesto reshape them again.“You have a history book written in your genes, ”said Spencer Wells. The bo ok he’s trying toread goes back to long before even the first word was written , and it is a story of migration.Wells, a tall, blond geneticist at Stanford University, spentthe summer of 1998 exploring remote parts of Transcaucasia and C180entral Asia with three collea gues in a Land Rover, looking for drops of blood. In the blood, donated by the p eople he met, he willsearch for the story that genetic markers can tell of the long paths human life has taken across the Earth. Genetic studies are thelatest technique in a long effort of modern humans t o find out where they have come from. But however the paths are traced, the basi c story is simple: people have been moving since they were people. If early huma ns hadn’t moved and intermingled as much as they did, they probably wouldhave c ontinued to evolve into different species. From beginningsin Africa, most resea rchers agree, groups ofhunter-gatherers spread out, driven to the ends of the E arth.To demographer Kingsley Davis, two things made migration happen. First, hum an beings, with their tools and language, could adapt to different conditions wi thout having to wait for evolution to make them suitable for a new niche. Second , as populations grew, cultures began to differ, and inequalities developed betw een groups. The first factor gave us the keys to the door of any room onthe pla net; the other gave us reasons to use them.Over the centuries, as agriculture spread across the planet,people moved t oward places where metal was found and worked and to centres of commerce that th en became cities. Those places were,in turn, invaded and overrun by people later generations called barbarians.In between these storm surges were steadier but similarly profound fides in which people moved out to colonize or were capturedand brought in as slaves. F or a while the population of Athens,that city of legendary enlightenment was as much as 35 percent slaves.“What strikes me is how important migration is as a cause and effect in the great world events. ”Mark Miller, co-author of The Age of Migration and a prof essor of political science at the University of Delaware, told me recently.It is difficult to think of any great events that did not involve migration . Religions spawned pilgrims or settlers; wars drove refugees before them and ma de new land available for the conquerors; political upheavals displaced thousand s or millions; economic innovations drew workers and entrepreneurs like magnets; envir181onmental disasters like famine or disease pushed their bedraggledsur vivor s anywhere they could replant hope. “It’s part of our nature, this movement,” Miller said, “It’s just a fact of the human condition.”23. Which of the following statements is INCORRECT?A. Migration exerts a great impact on populationchange.B. Mi gration contributes to Mankind’s progress.C. Migration brings about desirable and undesirable effects.D. Migration may not be accompanied by human conflicts.24. According to Kingsley Davis, migration occurs asa result of the foll owing reasons EXCEPF ___.A. human adaptabilityB. human evolutionC. cultural differencesD. inter-group inequalities25. Which of the following groups is NOT mentioned as migrants inthe pas sage?A. Farmers.B. Workers.C. Settlers.D. Colon izers.26. There seems to be a(n) ___ relationship between great events an d migration.A. looseB. indefiniteC. causalD. rem oteTEXT DHow is communication actually achieved? It depends, of course, either on a common language or on known conventions, or at leaston the beginnings of these. If the common language and the conventions exist, the contributor, for example, the creative artist, the performer, or the reporter, tries touse them as well as he can. But often, especially with original artists and thinkers, the problem is in one way that of creating a language, or creating a convention, or at leas t of developing thelanguage and conventions to the point where they are capable of bearing his precise meaning. In literature, in music, in the visualarts, in the sciences, in social thinking, in philosophy, this kind of development has o ccurred again and again. It often takes a l182ong time to get through, and for many people it will remain difficult. But we need never think that it is impossible; creative energy is much more powerful than we sometimes suppose. While a man isengaged in this struggle to say new things in new ways, he is usually more than ever concentrated on the actual work, and not on its possible audience. Many ar tists and scientists share this fundamental unconcern about the ways in which th eir work will be received. They may be glad if it is understood and appreciated, hurt if it is not, but while the work is being done there can be no argument. T he thing has to come out as the man himself sees it.In this sense it is true that it is the duty of society to create condition s in which such men can live. For whatever the value of any individual contribut ion, the general body of work is ofimmense value to everyone. But of course thi ngs are not so formal, in reality. There is not society on the one hand and thes e individuals on the other. In ordinary living, and in his work, the contributor shares in the life of his society, which often affects him both in minor ways a nd in ways sometimes so deep that he is not even aware of them. His ability to m ake his work public dependson the actual communication system: the language its elf, or certain visual or musical or scientific conventions, and the institution s through which the communication will be passed.The effect ofthese on his act ual work can be almost infinitely variable. Forit is not only a communication s ystem outside him; it is also, however original he may be, a communication syste m which is in factpart of himself. Many contributors make active use of this ki ndof internal communication system. It is to themselves, in a way, that they fi rst show their conceptions, play their music, presenttheir arguments. Not only as a way of getting these clear, in theprocess of almost endless testing that a ctive composition involves. But also, whether consciously or not, as a way of pu tting theexperience into a communicable form. If one mind has grasped it, then it may be open to other minds.In this deep sense, the society is in some ways already present in the act of composition. This is always very difficult to understand, but often, when we have the advantage of looking back ata period, we can see, even if we cannot e xplain, how this was so. We can see how much even highly original individuals ha d in common, in their actual work, and in what is called their “structure183of fe e ling”, with other individual workers of the time, and with the society of that t ime to which they belonged. The historianis also continually struck by the fact that men of this kind felt isolated at the very time when in reality they were beginning toget through. This can also be noticed in our own time,。
米什金货币金融学英文版习题答案chapter8英文习题
米什金货币金融学英文版习题答案chapter8英文习题Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 8 An Economic Analysis of Financial Structure8.1 Basic Facts About Financial Structure Throughout the World1) American businesses get their external funds primarily fromA) bank loans.B) bonds and commercial paper issues.C) stock issues.D) loans from nonbank financial intermediaries.Answer: DAACSB: Analytical Thinking2) Of the sources of external funds for nonfinancial businesses in the United States, loans from banks and other financial intermediaries account for approximately ________ of the total.A) 6%B) 40%C) 56%D) 60%Answer: CAACSB: Analytical Thinking3) Of the sources of external funds for nonfinancial businesses in the United States, corporate bonds and commercial paper account for approximately ________ of the total.A) 5%B) 10%C) 32%D) 50%Answer: CAACSB: Analytical Thinking4) Of the following sources of external finance for American nonfinancial businesses, the least important isA) loans from banks.B) stocks.C) bonds and commercial paper.D) loans from other financial intermediaries.Answer: BAACSB: Analytical Thinking5) Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total.A) 2%B) 11%C) 20%D) 40%Answer: BAACSB: Analytical Thinking6) Of the four sources of external funding for nonfinancial businesses, the least often used in the U.S. isA) bank loans.B) nonbank loans.C) bonds.D) stock.Answer: DAACSB: Analytical Thinking7) Which of the following statements concerning externalsources of financing for nonfinancial businesses in the United States are TRUE?A) Stocks are a far more important source of finance than are bonds.B) Stocks and bonds, combined, supply less than one-half of the external funds.C) Financial intermediaries are the least important source of external funds for businesses.D) Since 1970, more than half of the new issues of stock have been sold to American households.Answer: BAACSB: Reflective Thinking8) Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are TRUE?A) Issuing marketable securities is the primary way that they finance their activities.B) Bonds are the least important source of external funds to finance their activities.C) Stocks are a relatively unimportant source of finance for their activities.D) Selling bonds directly to the American household is a major source of funding for American businesses.Answer: CAACSB: Reflective Thinking9) With regard to external sources of financing for nonfinancial businesses in the United States, which of the following are accurate statements?A) Marketable securities account for a larger share of external business financing in the United States than in Germany andJapan.B) Since 1970, most of the newly issued corporate bonds and commercial paper have been sold directly to American households.C) Direct finance accounts for more than 50 percent of the external financing of American businesses.D) Smaller businesses almost always raise funds by issuing marketable securities.Answer: AAACSB: Reflective Thinking10) Nonfinancial businesses in Germany, Japan, and Canada raise most of their fundsA) by issuing stock.B) by issuing bonds.C) from nonbank loans.D) from bank loans.Answer: DAACSB: Application of Knowledge11) As a source of funds for nonfinancial businesses, stocks are relatively more important inA) the United States.B) Germany.C) Japan.D) Canada.Answer: DAACSB: Application of Knowledge12) Direct finance involves the sale to ________ of marketable securities such as stocks and bonds.A) householdsB) insurance companiesC) pension fundsD) financial intermediariesAnswer: AAACSB: Application of Knowledge13) Regulation of the financial systemA) occurs only in the United States.B) protects the jobs of employees of financial institutions.C) protects the wealth of owners of financial institutions.D) ensures the stability of the financial system.Answer: DAACSB: Reflective Thinking14) One purpose of regulation of financial markets is toA) limit the profits of financial institutions.B) increase competition among financial institutions.C) promote the provision of information to shareholders, depositors and the public.D) guarantee that the maximum rates of interest are paid on deposits.Answer: CAACSB: Reflective Thinking15) Property that is pledged to the lender in the event that a borrower cannot make his or her debt payment is calledA) collateral.B) points.C) interest.D) good faith money.Answer: AAACSB: Application of Knowledge16) Collateralized debt is also know asA) unsecured debt.B) secured debt.C) unrestricted debt.D) promissory debt.Answer: BAACSB: Application of Knowledge17) Credit card debt isA) secured debt.B) unsecured debt.C) restricted debt.D) unrestricted debt.Answer: BAACSB: Application of Knowledge18) The predominant form of household debt isA) consumer installment debt.B) collateralized debt.C) unsecured debt.D) unrestricted debt.Answer: BAACSB: Analytical Thinking19) If you default on your auto loan, your car will be repossessed because it has been pledged as ________ for the loan.A) interestB) collateralC) dividendD) commodityAnswer: BAACSB: Analytical Thinking20) Commercial and farm mortgages, in which property is pledged as collateral, account forA) one-quarter of borrowing by nonfinancial businesses.B) one-half of borrowing by nonfinancial businesses.C) one-twentieth of borrowing by nonfinancial businesses.D) two-thirds of borrowing by nonfinancial businesses.Answer: AAACSB: Application of Knowledge21) A ________ is a provision that restricts or specifies certain activities that a borrower can engage in.A) residual claimantB) risk hedgeC) restrictive barrierD) restrictive covenantAnswer: DAACSB: Application of Knowledge22) A clause in a mortgage loan contract requiring the borrower to purchase homeowner's insurance is an example of aA) proscriptive covenant.B) prescriptive covenant.C) restrictive covenant.D) constraint-imposed covenant.Answer: CAACSB: Application of Knowledge23) Which of the following is NOT one of the eight basic puzzles about financial structure?A) Stocks are the most important source of finance for American businesses.B) Issuing marketable securities is not the primary way businesses finance their operations.C) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds directly from lenders in financialmarkets.D) Banks are the most important source of external funds to finance businesses.Answer: AAACSB: Reflective Thinking24) Which of the following is NOT one of the eight basic puzzles about financial structure?A) Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrower.B) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds directly from lenders in financial markets.C) Collateral is a prevalent feature of debt contracts for both households and business.D) There is very little regulation of the financial system.Answer: DAACSB: Reflective Thinking8.2 Transaction Costs1) The current structure of financial markets can be best understood as the result of attempts by financial market participants toA) adapt to continually changing government regulations.B) deal with the great number of small firms in the United States.C) reduce transaction costs.D) cartelize the provision of financial services.Answer: CAACSB: Reflective Thinking2) The reduction in transactions costs per dollar of investment as the size of transactions increases isA) discounting.B) economies of scale.C) economies of trade.D) diversification.Answer: BAACSB: Application of Knowledge3) By bundling share purchases of many investors together mutual funds can take advantage of economies of scale and thereby lowerA) adverse selection.B) moral hazard.C) transactions costs.D) diversification.Answer: CAACSB: Analytical Thinking4) Which of the following is NOT a benefit to an individual purchasing a mutual fund?A) reduced riskB) lower transactions costsC) free-ridingD) diversificationAnswer: CAACSB: Analytical Thinking5) Financial intermediaries develop ________ in things such as computer technology whichallows them to lower transactions costs.A) expertiseB) diversificationC) regulationsD) equityAnswer: AAACSB: Information Technology6) Financial intermediaries' low transaction costs allow them to provide ________ services that make it easier for customers to conduct transactions.A) liquidityB) conductionC) transcendentalD) equitableAnswer: AAACSB: Reflective Thinking7) How does a mutual fund lower transactions costs through economies of scale?Answer: The mutual fund takes the funds of the individuals who have purchased shares and uses them to purchase bonds or stocks. Because the mutual fund will be purchasing large blocks of stocks or bonds they will be able to obtain them at lower transactions costs than the individual purchases of smaller amounts could.AACSB: Reflective Thinking8.3 Asymmetric Information: Adverse Selection and Moral Hazard1) A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is calledA) moral hazard.B) asymmetric information.C) noncollateralized risk.D) adverse selection.Answer: BAACSB: Reflective Thinking2) The presence of ________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.A) noncollateralized riskB) free-ridingC) asymmetric informationD) costly state verificationAnswer: CAACSB: Analytical Thinking3) 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 Knowledge4) If bad credit risks are the ones who most actively seek loans then financial intermediaries face the problem ofA) moral hazard.B) adverse selection.C) free-riding.D) costly state verification.Answer: BAACSB: Reflective Thinking5) The problem faced by the lender that the borrower may take on additional risk after receiving the loan is calledA) adverse selection.B) moral hazard.C) transactions costs.D) diversification.Answer: BAACSB: Analytical Thinking6) An example of the ________ problem would be if Brian borrowed money from Sean in order to purchase a used car and instead took a trip to Atlantic City using those funds.A) moral hazardB) adverse selectionC) costly state verificationD) agencyAnswer: AAACSB: Ethical understanding and reasoning abilities7) The analysis of how asymmetric information problems affect economic behavior is called________ theory.A) unevenB) parallelC) principalD) agencyAnswer: DAACSB: Application of Knowledge8.4 The Lemons Problem: How Adverse Selection Influences Financial Structure1) The "lemons problem" exists because ofA) transactions costs.B) economies of scale.C) rational expectations.D) asymmetric information.Answer: DAACSB: Application of Knowledge2) Because of the "lemons problem" the price a buyer of a used car pays isA) equal to the price of a lemon.B) less than the price of a lemon.C) equal to the price of a peach.D) between the price of a lemon and a peach.Answer: DAACSB: Analytical Thinking3) 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 lender's inability to restrict the borrower from changing his behavior once given a loan. Answer: AAACSB: Reflective Thinking4) The ________ problem helps to explain why the private production and sale of information cannot eliminate ________.A) free-rider; adverse selectionB) free-rider; moral hazardC) principal-agent; adverse selectionD) principal-agent; moral hazardAnswer: AAACSB: Reflective Thinking5) The free-rider problem occurs becauseA) people who pay for information use it freely.B) people who do not pay for information use it.C) information can never be sold at any price.D) it is never profitable to produce information.Answer: BAACSB: Reflective Thinking6) In the United States, the government agency requiring that firms that sell securities in public markets adhere to standard accounting principles and disclose information about their sales, assets, and earnings is theA) Federal Communications Commission.B) Federal Trade Commission.C) Securities and Exchange Commission.D) Federal Reserve System.Answer: CAACSB: Analytical Thinking7) Government regulations require publicly traded firms to provide information, reducingA) transactions costs.B) the need for diversification.C) the adverse selection problem.D) economies of scale.Answer: CAACSB: Analytical Thinking8) A lesson of the Enron collapse is that government regulationA) always fails.B) can reduce but not eliminate asymmetric information.C) increases the problem of asymmetric information.D) should be reduced.Answer: BAACSB: Reflective Thinking9) That most used cars are sold by intermediaries (i.e., used car dealers) provides evidence that these intermediariesA) have been afforded special government treatment, since used car dealers do not provide information that is valued by consumers of used cars.B) are able to prevent potential competitors from free-riding off the information that they provide.C) have failed to solve adverse selection problems in this market because "lemons" continue to be traded.D) have solved the moral hazard problem by providing valuable information to their customers. Answer: BAACSB: Reflective Thinking10) Analysis of adverse selection indicates that financial intermediaries, especially banksA) have advantages in overcoming the free-rider problem, helping to explain why indirect finance is a more important source of business finance than is direct finance.B) despite their success in overcoming free-rider problems, nevertheless play a minor role in moving funds to corporations.C) provide better-known and larger corporations a higher percentage of their external funds than they do to newer and smaller corporations which rely to a greater extent on the new issues market for funds.D) must buy securities from corporations to diversify the riskthat results from holdingnon-tradable loans.Answer: AAACSB: Reflective Thinking11) The concept of adverse selection helps to explain all of the following EXCEPTA) why 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) why the financial system is so heavily regulated.Answer: CAACSB: Reflective Thinking12) As information technology improves, the lending role of financial institutions such as banks shouldA) increase somewhat.B) decrease.C) stay the same.D) increase significantly.Answer: BAACSB: Information Technology13) External financing by ________ should be more important in developing countries than in industrialized countries because information about private firms is more difficult to collect in developing countries.A) financial intermediariesB) bondsC) stockD) direct lendingAnswer: AAACSB: Reflective Thinking14) That only large, well-established corporations have access to securities marketsA) explains why indirect finance is such an important source of external funds for businesses.B) can be explained by the problem of moral hazard.C) can be explained by government regulations that prohibit small firms from acquiring funds in securities markets.D) explains why newer and smaller corporations rely so heavily on the new issues market for funds.Answer: AAACSB: Reflective Thinking15) Because of the adverse selection problemA) good credit risks are more likely to seek loans causing lenders to make a disproportionate amount of loans to good credit risks.B) lenders may refuse loans to individuals with high net worth, because of their greater proclivity to "skip town."C) lenders are reluctant to make loans that are not secured by collateral.D) lenders will write debt contracts that restrict certain activities of borrowers.Answer: CAACSB: Reflective Thinking16) Net worth can perform a similar role toA) diversification.B) collateral.C) intermediation.D) economies of scale.Answer: BAACSB: Analytical Thinking17) The problem of adverse selection helps to explainA) why firms are more likely to obtain funds from banks and other financial intermediaries, rather than from securities markets.B) why collateral is an important feature of consumer, but not business, debt contracts.C) why direct finance is more important than indirect finance as a source of business finance.D) why lenders refuse loans to individuals with high net worth.Answer: AAACSB: Reflective Thinking18) The concept of adverse selection helps to explainA) why collateral is not a common feature of many debt contracts.B) why large, well-established corporations find it so difficult to borrow funds in securities markets.C) why financial markets are among the most heavily regulated sectors of the economy.D) why stocks are the most important source of external financing for businesses.Answer: CAACSB: Reflective Thinking19) Tools to help solve the adverse selection problem in financial markets include all of the following EXCEPTA) diversification.B) government regulations to increase information.C) the use of financial intermediaries.D) the private production and sale of information.Answer: AAACSB: Application of Knowledge20) How does collateral help to reduce the adverse selection problem in credit market? Answer: Collateral is property that is promised to the lender if the borrower defaults thus reducing the lender's losses. Lenders are more willing to make loans when there is collateral that can be sold if the borrower defaults.AACSB: Reflective Thinking8.5 How Moral Hazard Affects the Choice Between Debt and Equity Contracts1) Equity contractsA) are claims to a share in the profits and assets of a business.B) have the advantage over debt contracts of a lower costly state verification.C) are used much more frequently to raise capital than are debt contracts.D) are not subject to the moral hazard problem.Answer: AAACSB: Application of Knowledge2) A problem for equity contracts is a particular type of ________ called the ________ problem.A) adverse selection; principal-agentB) moral hazard; principal-agentC) adverse selection; free-riderD) moral hazard; free-riderAnswer: BAACSB: Reflective Thinking3) Moral hazard in equity contracts is known as the ________ problem because the manager of the firm has fewer incentives to maximize profits than the stockholders might ideally prefer.A) principal-agentB) adverse selectionC) free-riderD) debt deflationAnswer: AAACSB: Reflective Thinking4) Managers (________) may act in their own interest rather than in the interest of the stockholder-owners (________) because the managers have less incentive to maximize profits than the stockholder-owners do.A) principals; agentsB) principals; principalsC) agents; agentsD) agents; principalsAnswer: DAACSB: Ethical understanding and reasoning abilities5) The principal-agent problemA) occurs when managers have more incentive to maximize profits than the stockholders-owners do.B) in financial markets helps to explain why equity is a relatively important source of finance for American business.C) would not arise if the owners of the firm had complete information about the activities of the managers.D) explains why direct finance is more important than indirect finance as a source of business finance.Answer: CAACSB: Reflective Thinking6) The principal-agent problem would not occur if ________ ofa firm had complete information about actions of the ________.A) owners; customersB) owners; managersC) managers; customersD) managers; ownersAnswer: BAACSB: Reflective Thinking7) The recent Enron and Tyco scandals are an example ofA) the free-rider problem.B) the adverse selection problem.C) the principal-agent problem.D) the "lemons problem."Answer: CAACSB: Ethical understanding and reasoning abilities8) The name economists give the process by which stockholders gather information by frequent monitoring of the firm's activities isA) costly state verification.B) the free-rider problem.C) costly avoidance.D) debt intermediation.Answer: AAACSB: Application of Knowledge9) Because information is scarceA) helps explain why equity contracts are used so much more frequently to raise capital than are debt contracts.B) monitoring managers gives rise to costly state verification.C) government regulations, such as standard accounting principles, have no impact on problems such as moral hazard.D) developing nations do not rely heavily on banks for business financing.Answer: BAACSB: Reflective Thinking10) Government regulations designed to reduce the moral hazard problem includeA) laws that force firms to adhere to standard accounting principles.B) light sentences for those who commit the fraud of hiding and stealing profits.C) state verification subsidies.D) state licensing restrictions.Answer: AAACSB: Reflective Thinking11) One financial intermediary in our financial structure that helps to reduce the moral hazard from arising from the principal-agent problem is theA) venture capital firm.B) money market mutual fund.C) pawn broker.D) savings and loan association.Answer: AAACSB: Application of Knowledge12) A venture capital firm protects its equity investment from moral hazard through which of the following means?A) It places people on the board of directors to better monitor the borrowing firm's activities.B) It writes contracts that prohibit the sale of an equity investment to the venture capital firm.C) It prohibits the borrowing firm from replacing itsmanagement.D) It requires a 50% stake in the company.Answer: AAACSB: Reflective Thinking13) One way the venture capital firm avoids the free-rider problem is byA) prohibiting the sale of equity in the firm to anyone except the venture capital firm.B) prohibiting members from serving on the board of directors.C) prohibiting the borrowing firm from replacing management.D) requiring collateral equal to the value of the borrowed funds.Answer: AAACSB: Reflective Thinking14) Equity contracts account for a small fraction of external funds raised by American businesses becauseA) costly state verification makes the equity contract less desirable than the debt contract.B) of the reduced scope for moral hazard problems under equity contracts, as compared to debt contracts.C) equity contracts do not permit borrowing firms to raise additional funds by issuing debt.D) there is no moral hazard problem when using a debt contract.Answer: AAACSB: Reflective Thinking15) Debt contractsA) are agreements by the borrowers to pay the lenders fixeddollar amounts at periodic intervals.B) have a higher cost of state verification than equity contracts.C) are used less frequently to raise capital than are equity contracts.D) never result in a loss for the lender.Answer: AAACSB: Application of Knowledge16) Since they require less monitoring of firms, ________ contracts are used more frequently than ________ contracts to raise capital.A) debt; equityB) equity; debtC) debt; loanD) equity; stockAnswer: AAACSB: Reflective Thinking17) Solutions to the moral hazard in equity contracts include all of the following EXCEPTA) government regulations to increase information.B) the use of financial intermediaries.C) the use of debt contracts.D) government ownership of resources.Answer: DAACSB: Application of Knowledge18) Explain the principal-agent problem as it pertains to equity contracts.Answer: The principals are the stockholders who own most of the equity. The agents are the managers of the firm who generally own only a small portion of the firm. The problemoccurs because the agents may not have as much incentive to profit maximize as the stockholders. AACSB: Reflective Thinking8.6 How Moral Hazard Influences Financial Structure in Debt Markets1) Although debt contracts require less monitoring than equity contracts, debt contracts are still subject to ________ since borrowers have an incentive to take on more risk than the lender would like.A) moral hazardB) agency theoryC) diversificationD) the "lemons" problemAnswer: AAACSB: Reflective Thinking2) A debt contract is incentive compatibleA) if the borrower has the incentive to behave in the way that the lender expects and desires, since doing otherwise jeopardizes the borrower's net worth in the business.B) if the borrower's net worth is sufficiently low so that the lender's risk of moral hazard is significantly reduced.C) if the debt contract is treated like an equity.D) if the lender has the incentive to behave in the way that the borrower expects and desires. Answer: AAACSB: Reflective Thinking3) High net worth helps to diminish the problem of moral hazard problem byA) requiring the state to verify the debt contract.B) collateralizing the debt contract.C) making the debt contract incentive compatible.D) giving the debt contract characteristics of equity contracts.。
米什金货币金融学英文版习题答案chapter12英文习题
⽶什⾦货币⾦融学英⽂版习题答案chapter12英⽂习题Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 12 Financial Crises in Advanced Economies12.1 What is a Financial Crisis?1) A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called aA) financial crisis.B) fiscal imbalance.C) free-rider problem.D) "lemons" problem.Answer: AAACSB: Application of Knowledge2) A financial crisis occurs when an increase in asymmetric information from a disruption in the financial systemA) causes severe adverse selection and moral hazard problems that make financial markets incapable of channeling funds efficiently.B) allows for a more efficient use of funds.C) increases economic activity.D) reduces uncertainty in the economy and increases market efficiency.Answer: AAACSB: Reflective Thinking3) A serious consequence of a financial crisis isA) a contraction in economic activity.B) an increase in asset prices.C) financial engineering.D) financial globalization.Answer: AAACSB: Reflective Thinking4) ________ are asymmetric information problems that act as a barrier to efficient allocation of capital.A) Asset pricesB) Credit imbalancesC) Financial frictionsD) Financial derivativesAnswer: CAACSB: Application of Knowledge12.2 Dynamics of Financial Crises1) Financial crises in advanced economies might start from aA) debt deflation.B) currency crisis.C) mismanagement of financial innovations.D) currency mismatch.Answer: CAACSB: Reflective Thinking2) When financial institutions go on a lending spree and expand their lending at a rapid pace they are participating in aA) credit boom.B) credit bust.C) deleveraging.D) market race.Answer: AAACSB: Application of Knowledge3) When the value of loans begins to drop, the net worth of financial institutions falls causing them to cut back on lending in a process calledA) deleveraging.B) releveraging.C) capitulation.D) deflation.Answer: AAACSB: Application of Knowledge4) When financial intermediaries deleverage, firms cannot fund investment opportunities resulting inA) a contraction of economic activity.B) an economic boom.C) an increased opportunity for growth.D) a call for government regulation.Answer: AAACSB: Reflective Thinking5) When asset prices rise above their fundamental economic values, a(n) ________ occurs.A) asset-price bubbleB) liability warC) decline in lendingD) decrease in moral hazardAnswer: AAACSB: Application of Knowledge6) Most U.S. financial crises have started during periods of ________ either after the start of a recession, a stock marketcrash, or the failure of a major financial institution.A) high uncertaintyB) low interest ratesC) low asset pricesD) high financial regulationAnswer: AAACSB: Reflective Thinking7) If uncertainty about banks' health causes depositors to begin to withdraw their funds from banks, the country experiences a(n)A) banking crisis.B) financial recovery.C) reduction of the adverse selection and moral hazard problems.D) increase in information available to investors.Answer: AAACSB: Reflective Thinking8) In a bank panic, the source of contagion is theA) free-rider problem.B) too-big-to-fail problem.C) transactions cost problem.D) asymmetric information problem.Answer: DAACSB: Reflective Thinking9) Debt deflation occurs whenA) an economic downturn causes the price level to fall and a deterioration in firms' net worth because of the increased burden of indebtedness.B) rising interest rates worsen adverse selection and moral hazard problems.C) lenders reduce their lending due to declining stock prices (equity deflation) that lowers the value of collateral.D) corporations pay back their loans before the scheduled maturity date.Answer: AAACSB: Reflective Thinking10) A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is calledA) debt deflation.B) moral hazard.C) insolvency.D) illiquidity.Answer: A11) A possible sequence for the three stages of a financial crisis might be ________ leads to________ leads to ________.A) asset price declines; banking crises; unanticipated decline in price levelB) unanticipated decline in price level; banking crises; increase in interest ratesC) banking crises; increase in interest rates; unanticipated decline in price levelD) banking crises; increase in uncertainty; increase in interest ratesAnswer: AAACSB: Reflective Thinking12) The economy recovers quickly from most recessions, but the increase in adverse selection and moral hazard problems in the credit markets caused by ________ led to the severe economic contraction known as The Great Depression.A) debt deflationB) illiquidityC) an improvement in banks' balance sheetsD) increases in bond pricesAnswer: AAACSB: Reflective Thinking13) The ________, the difference between the interest rate on Baa corporate bonds and U.S. Treasury bonds. rose sharply during the Great Depression.A) credit boomB) credit spreadC) adjustable-rateD) default swapAnswer: BAACSB: Application of Knowledge14) Typically, the economy recovers fairly quickly from a recession. Why did this NOT happen in the United States during the Great Depression?Answer: The 25% decline in the price level from 1930-1933 triggered a debt deflation. The loss of net worth increased adverse selection and moral hazard problems in the credit markets and increased and prolonged the economic contraction. AACSB: Reflective Thinking12.3 The Global Financial Crisis of 2007-20091) ________ is a process of bundling together smaller loans (like mortgages) into standard debt securities.A) SecuritizationB) OriginationC) Debt deflationD) DistributionAnswer: A2) A ________ pays out cash flows from a collection of assets in different tranches, with the highest-rated tranch paying out first, while lower ones paid out less if there are losses on the underlying assets.A) collateralized debt obligation (CDO)B) adjustable-rate mortgageC) negotiable CDD) discount bondAnswer: AAACSB: Application of Knowledge3) The originate-to-distribute business model has a serious ________ problem since the mortgage broker has little incentive to make sure that the mortgagee is a good credit risk.A) principal-agentB) debt deflationC) democratization of creditD) collateralized debtAnswer: AAACSB: Ethical understanding and reasoning abilities4) If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay offa loan, this creates aA) severe adverse selection problem.B) decline in mortgage applications.C) call to deregulate the industry.D) decrease in the demand for houses.Answer: AAACSB: Ethical understanding and reasoning abilities5) Agency problems in the subprime mortgage market included all of the following EXCEPTA) homeowners could refinance their houses with larger loans when their homes appreciated in value.B) mortgage originators had little incentives to make sure that the mortgagee is a good credit risk.C) underwriters of mortgage-backed securities had weak incentives to make sure that the holders of the securities would be paid back.D) the evaluators of securities, the credit rating agencies, were subject to conflicts of interest. Answer: AAACSB: Ethical understanding and reasoning abilities6) The growth of the subprime mortgage market led toA) increased demand for houses and helped fuel the boom in housing prices.B) a decline in the housing industry because of higher default risk.C) a decrease in home ownership as investors chose other assets over housing.D) decreased demand for houses as the less credit-worthy borrowers could not obtain residential mortgages.Answer: AAACSB: Reflective Thinking7) When housing prices began to decline after their peak in 2006, many subprime borrowers found that their mortgages were "underwater." This meant thatA) the value of the house fell below the amount of the mortgage.B) the basement flooded since they could not afford to fix the leaky plumbing.C) the roof leaked during a rainstorm.D) the amount that they owed on their mortgage was less than the value of their house. Answer: AAACSB: Reflective Thinking8) If a borrower takes out a $200 million loan in a repo agreement and is asked to post $220 million of mortgage-backed securities as collateral, the "haircut" isA) 5%.B) 10%.C) 20%.D) 50%.Answer: BAACSB: Analytical Thinking9) As "haircuts" increased during 2007-2009, financial institutions found that to borrow the same loan amount now required ________ collateral.A) lessB) noC) moreD) default-freeAnswer: CAACSB: Reflective Thinking10) Although the subprime mortgage market problem began in the United States, the first indication of the seriousness of the crisis began inA) Europe.B) Australia.C) China.D) South America.Answer: AAACSB: Application of Knowledge11) Which investment bank filed for bankruptcy on September 15, 2008 making it the largest bankruptcy filing in U.S. history?A) Lehman BrothersB) Merrill LynchC) Bear StearnsD) Goldman SachsAnswer: AAACSB: Application of Knowledge12) The global financial crisis of 2007-2009 not only led to a worldwide recession, but also a________ in the European nations that use the euro currency.A) currency devaluationB) budget surplusC) sovereign debt crisisD) tax cutAnswer: CAACSB: Application of Knowledge12.4 Government Intervention, Recovery, and Stabilization1) How does the process of financial innovation impact the effectiveness of macroprudential regulation?A) With financial innovation and new financial instruments created, legislation increased and made financial regulation more difficultB) It may be difficult for regulators to understand how new financial innovations will impact the overall financial systemC) With constantly changing financial innovations the efficiency of the system is reducedD) With financial innovation regulators better understand its impact on the financial system and may prevent a future bank crisis.Answer: BAACSB: Application of Knowledge2) Which of the following is a short term response?A) Financial support provided by governments to bail out banksB) Micro- and macroprudential policiesC) Consumer ProtectionD) Strengthening the financial infrastructure of an economyAnswer: AAACSB: Application of Knowledge12.5 Stabilizing the Global Financial System: Long term Responses1) Microprudential supervision focuses on the safety and soundness ofA) individual financial institutions.B) the financial system as a whole.C) the shadow banking system.D) government credit agencies.Answer: AAACSB: Application of Knowledge2) Microprudential supervision does all of the following EXCEPTA) checking capital ratios of a bank.B) checking a bank's compliance with disclosure requirements.C) assessing the riskiness of an individual bank's activities.D) focusing on financial system liquidity.Answer: DAACSB: Reflective Thinking3) Macroprudential supervision policies try to prevent a leverage cycle by changing capital requirements so that they________ during an expansion and ________ during a downturn.A) increase; decreaseB) increase; increaseC) decrease; increaseD) decrease; decreaseAnswer: AAACSB: Reflective Thinking12.6 Future Regulations and Policy Areas at the International Level1) Well designed macro- and microprudential policies combined with international supervisory cooperation among central banks and regulators aids inA) gauging the level of adherence of jurisdictions to regulatory standardsB) helping consumers acquire knowledge and better analyze informationC) plugging all potential loopholes of regulatory arbitrageD) enhancing global cooperationAnswer: CAACSB: Application of Knowledge2) The following are the main goals of the FSB (Financial Stability Board) EXCEPTA) To reveal regulatory gapsB) To monitors markets for asset price bubbles and the buildup of systemic riskC) To provide policymakers with useful recommendationsD) To harmonize financial regulations among national regulators and international financial institutionsAnswer: BAACSB: Application of Knowledge3) Why is the LIBOR scandal considered one of the most scandalous financial frauds?A) Various notable banks in London manipulated the LIBOR interest rates to boost their profits.B) Consumers were unable to unfold the complexity of financial instruments.C) It made payments to brokers for pushing borrowers into higher priced loans.D) Took large trading risksAnswer: AAACSB: Application of Knowledge。
英语职业模块(财经、商贸及服务类)答案
Unit 1 ReceptionSection A Warm Up1. rest room2. reception room3. waitress4. registration form5. bellboy6. guest bookSection B Listening and SpeakingWork AloneⅠ. 1. F 2. T 3. TⅡ.1. guide 2. coming to meet 3. AttentionⅢ. reservation, single room, of course, ninth, staySection C ReadingPost-readingⅠ. 1. T 2. F 3. TⅡ.1. basic2. attract3. approached4. respect5. Communication6. repeat Ⅲ.1.first name2. shake hands3. look forward to4. Stand up5. talk to Section D WritingⅠ.Ⅱ.Unit 2 Make an AppointmentSection B Listening and SpeakingWork AloneⅠ. 1. T 2. F 3. TⅡ. 1. be free 2. as soon as 3. messageⅢ. make an appointment, afraid, earlier, shall, a lotSection C ReadingPost-readingⅠ1. People may invite others by telephone or an invitation letter.2. You may say “Thank you for inviting me, but I will not be able to come”.3. Send a thank-you note or give a telephone call to inviter to express the appreciation for the invitation.Ⅱ1. idiom 2. wise 3. refuse 4. appropriate 5. consider 6. appreciationⅢ1.drop in2. in advance3. was unable to4. invitation letter5. a thank-you noteSection D WritingⅠFoundAn MP5 was found at the entrance to the Dahua Cinema on the evening of February 6th. Will the owner please contact the manager of Dahua Cinema?ⅡAn English Editor WantedOur school newspaper is looking for an editor for its English edition. The job mainly includes two parts: One is to choose proper English articles from other newspapers, magazines or Internet for us students. The other is to pick out articles form those written by students in our school and edit them for use.We hope that he/she could meet the following requirements: First, he/she is willing to devote some of his/her spare time to serving the others. Second, it’s necessary for him/her to be good at both English and fine arts. Besides, the ability to use the computer is important.Those who are interested in the job, please get in touch with the Students’ Union this week.Students’ UnionUnit 3 Bank ServiceSection A Warm Up1. passbook2. A TM3. banknote4. debit card5. coin6. queue machine7. currency counter8. check Section B Listening and SpeakingWork AloneⅠ1. F 2. T 3. FⅡ. 1. ordinary 2. overdraw 3. pick it upⅢpersonal check take cable charges instruct return cableSection C ReadingPost-readingⅠ.1. F 2. F 3. TⅡ1. password 2. overdraft 3. issued 4. deposit 5. plastic 6. stolenⅢ1. insteading of 2. Fill in 3. a large amount of 4. waiting for 5. from time to timeSection D WritingⅠ.ⅡUnit 4 Hotel ServiceSection B Listening and SpeakingWork AloneⅠ. 1. T 2. F 3. TⅡ1. hotel services 2. sign 3. luggageⅢcheck out, total, credit card, receipt, pleasureSection C ReadingPost-readingⅠ1. direct-dial telephone, 24-hour room service, color TV, controls for lights and air-conditioning, minibar, tea and coffee-making facilities and a personal safe.2. On the 19th floor.3. It is open from 8 am to 11 pm.Ⅱ1. gym 2. safe 3. lounge 4. control 5. facilities 6. availableⅢ1.less than 2. a range of 3. are equipped with 4. check outSection D WritingⅠ尊敬的张老师，由于我得了重感冒，所以我今天不能来上课，为此我感到非常抱歉。
MiniCase(topic2)(1)财务管理英文版教学课件大学二年级下学期用
Mini Case （Topic 2）Donna Jamison, a 2003 graduate of the University of Tennessee with four years of banking experience, was recently brought in as assistant to the chairman of the board of Computron Industries, a manufacturer of electronic calculators.The Company doubled its plant capacity, opened new sales offices outside its home territory, and launched an expensive advertising campaign. Computron’s results were not satisfactory, to put it mildly. Its board of directors, which consisted of its president and vice-president plus its major stockholders(who were all local businesspeople), was most upset when directors learned how the expansion was going. Suppliers were being paid late and were unhappy, and the bank was complaining about the deteriorating situation and threatening to cut off credit. As a result, Al Watkins, Computron’s president, was informed that changes would have to be made, and quickly, or he would be fired. Also, at the board’s insistence Donna Jamison was brought in and given the job of assistant to Fred Campo, a retired banker who was Computron’s Chairman and largest stockholder. Campo agreed to give up a few of his golfing days and to help nurse the company back to health, with Jamison’s help.Jamison began by gathering financial statements and other data.BALANCE SHEET 2008 2007AssetsCash $ 7,282 $ 9,000 Short-term investments 0 48,600 Accounts receivable 632,160 351,200 Inventories 1,287,360 715,200 Total current assets $ 1,926,802 $ 1,124,000 Gross fixed assets 1,202,950 491,000 Less accumulated depreciation 263,160 146,200Net fixed assets $ 939,790 $ 344,800 Total assets $ 2,866,592 $ 1,468,800 Liabilities and Equity 2008 2007 Accounts payable $ 524,160 $ 145,600 Notes payable 720,000 200,000 Accruals 489,600 136,000 Total current liabilities $ 1,733,760 $ 481,600 Long-term debt 1,000,000 323,432 Common stock(100,000 shares) 460,000 460,000 Retained earnings (327,168) 203,768 Total equity $ 132,832 $ 663,768 Total liabilities and equity $ 2,866,592 $ 1,468,800 INCOME STATEMENT 2008 2007Sales $ 5,834,400 $ 3,432,000Cost of goods sold 5,728,000 2,864,000 Other expenses 680,000 340,000 Depreciation 116,960 18,900Total operating costs $ 6,524,960 $ 3,222,900EBIT ($ 690,560) $ 209,100Interest expense 176,000 62,500EBT ($ 866,560) $ 146,600 Taxes(40%) (346,624) 58,640Net income ($ 519,936) $ 87,960EPS ($ 5.199) $ 0.880DPS $ 0.110 $ 0.220Book value per share $ 1.328 $ 6.638Stock price $ 2.25 $ 8.50 Shares outstanding 100,000 100,000Tax rate 40.00% 40.00% Lease payments 40,000 40,000 Sinking fund payments 0 0STA TAMENT OF RETAINED EARNINGS,2008Balance of retained earnings,12/31/07 $ 203,768Add: Net income,2008 (519,936)Less: Dividends paid (11,000)Balance of retained earnings,12/31/08 ($ 327,168)STA TEMENT OF CASH FLOWS, 2008Operating ActivitiesNet Income ($ 519,936) Adjustments:Noncash adjustments:Depreciation 116,960Changes in working capital:Change in accounts receivable (280,960)Change in inventories (572,160)Change in accounts payable 378,560Change in accruals 353,600Net cash provided by operating activities ($ 523,936)Long-Term Investing ActivitiesCash used to acquired fixed assets ($ 711,950) Financing ActivitiesChange in short-term investments $ 48,600Change in notes payable 520,000Change in long-term debt 676,568Payment of cash dividends (11,000)Net cash provided by financing activities $ 1,234,168Sum: Net change in cash (1,718)Plus: Cash at beginning of year $ 9,000Cash at end of year $ 7,282Assume that you are Jamison’s assistant, and you must help her answer the following questions for Campo.a.What effect did the expansion have on sales, net operating profit aftertaxes(NOPAT),net operating working capital, and net income?b.What effect did the expansion have on net cash flow, operating cash flow, and freecash flow?c.Jamison also has asked you to estimate Computron’s EV A. She estimates that theafter-tax cost of capital was 11 percent in 2007 and 13 percent in 2008.d.Looking at Computron’s stock price today, would you conclude that the expansionincreased or decreased MV A?putron purchases materials on 30-day terms, meaning that it is supposed topay for purchases within 30 days of receipt. Judging from its 2008 balance sheet, do you think Comptron pays suppliers on time? Explain. If not, what problems might this lead to?ptron spends money fro labor, materials, and fixed assets(depreciation) tomake products, and still more money to sell those products. Then, it makes sales that result in receivables, which eventually result in cash inflows. Does it appear that Comptron’s sales price exceeds its costs per unit sold? How does this affect the cash balance?g.Suppose Computron’s sales manager told the sales staff to start offering 60-daycredit terms rather than the 30-day terms now being offered. Computron’s competitors react by offering similar terms, so sales remain constant. What effect would this have on the cash account? How would the cash account be affected if sales doubled as a result of the credit policy change?h.Can you imagine a situation in which the sales price exceeds the cost of producingand selling a unit of output, yet a dramatic increase in sales volume causes the cash balance to decline?i.In general, could a company like Computron increase sales without acorresponding increase in inventory and other assets? Would the asset increase occur before the increase in sales, and, if so, how would that affect the cash account and the statement of cash flows?j.Did Computron finance its expansion program with internally generated funds(additions to retained earnings plus depreciation) or with external capital?How does the choice of financing affect the company’s financial strength?k.Refer to the income statements and the statement of cash flows.Suppose Computron broke even in 2008 in the sense that sales revenues equaled total operating costs plus interest charges. Would the asset expansion have caused the company to experience a cash shortage which required it to raise external capital? l.If Computron started depreciating fixed assets over 7 years rather than 10 years, would that affect (1)the physical stock of assets,(2)the balance sheet account for fixed assets,(3)the company’s reported net income, and (4)its cash position?Assume the same depreciation method is used for stockholder reporting and for tax calculations, and the accounting change has no effect on assets’ physical lives. m.Explain how(1)inventory valuation methods, (2)the accounting policy regarding expensing versus capitalizing research and development, and (3) the policy with regard to funding future retirement plan costs(retirement pay and retirees’ health benefits) could affect the financial statements.putron’s stock sells for $2.25 per share even though the company had largelosses. Does the positive stock price indicate that some investors are irrational? putron followed the standard practice of paying dividends on a quarterly basis. It paid a dividend during the first two quarters of 2008, then eliminated the dividend when management realized that a loss would be incurred for the year.The dividend was cut before the losses were announced, and at that point the stock price fell from $8.50 to $ would an $0.11, or even a $0.22, dividend reduction lead to a $5.00 stock price reduction?p.Explain how earnings per share, dividends per share, and book value per share are calculated, and what they mean. Why does the market price per share not equal the book value per share?q.How much new money did Computron borrow from its bank during 2007?How much additional credit did its suppliers extend? Its employees and the taxing authorities?r.If you were Computron’s banker, or the credit manager of one of its suppliers, would you be worried about your job? If you were a current Computron employee,a retiree, or a stockholder, should you be concerned?s.The 2008 income statement shows negative taxes, that is, a tax credit. How much taxes would the company have had to pay in the past to actually get this credit? If taxes paid within the last 2 years had been less than $346,624, what would have happened? Would this have affected the statement of cash flows and the ending cash balance?t.Working with Jamison has required you to put in a lot of overtime, so you have had very little time to spend on your private finances. It’s now April 1, and you have only two weeks left to file your income tax return. You have managed to get all the information together that you will need to complete your return.Computron paid you salary of $45,000, and you received $3,000 in dividend from common stock that you own. You are single, so your per personal exemption is $2,800, and your itemized deduction are $4,550.(1)On the basis of the information above and the individual tax rate scheduleshown in the topic, what is your tax liability?(2)What are your marginal and average tax rates?u.Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s tax liability?v.Assume that after paying your personal income tax as calculated in part t, you have $5,000 to invest. You have narrowed your investment choices down to California bonds with a yield of 7 percent or equally risky Exxon Mobil bonds with a yield of 10 percent. Which one should you choose and why? At what marginal tax rate would you be indifferent to the choice between California and Exxon Mobil bonds?。
Corporate Finance 第7版 答案Ch12CaseSolution
Minicase: ALLIED products – narrativeWe have made a number of necessary assumptions. The instructor may decide to make different assumptions.1. The average beta of companies in the commercial aircaraft market (Allied Signal, Boeing, etc) is one according to the latest Value Line Investment Survey. Please note that this may change from survey to survey. We assume that the average beta is the appropriate beta for Allied Products.2. We assume the debt to equity ratio for Allied Products is no different from the industry average.3. We assume the debt beta is zero.These are all questionable assumptions. However, they are as good as any others. (I tend to agree with the instructor that the mini case needs to be tightened up. The above assumptions should be put in the instructors manual.)_____Minicase: AlliedProducts Solution (RWJ, 7th Ed., Page 341-343)Assumptions ResultsPP&E Investment 42,000,000Useful life of PP&E Investment (years) 7Salvage Value of PP&E Investment 12,000,000Annual Depreciation Expense (7 year MACRS) Payback3.84Ending Book Discounted Payback 4.63Year MACRS % Depreciation Value AAR 20.81%1 14.29% 6,001,800 35,998,200 IRR15.76%2 24.49% 10,285,800 25,712,400 NPV$10,649,0553 17.49% 7,345,800 18,366,600 PI 1.254 12.49% 5,245,800 13,120,800Last year of project 5 8.93% 3,750,600 9,370,2006 8.93% 3,750,600 5,619,6007 8.93% 3,750,600 1,869,0008 4.45% 1,869,000 0NEW GPWS price/unit (Year 1) 70,000NEW GPWS variable cost/unit (Year 1) 50,000UPGRADE GPWS price/unit (Year 1) 35,000UPGRADE GPWS variable cost/unit (Year 1) 22,000Year 1 marketing and admin costs 3,000,000Annual inflation rate 3.00%Corporate Tax rate 40.00%Debt-to-Equity ratio 50.00%Rd (Cost of debt Capital) 6.20%Beta--Commercial Aircraft Industry Average 1.00Rf (5 year U.S. Treasury Bond) 6.20%Rm - Rf (S&P 500 recent year's average premium) 8.30%Re (from CAPM) 12.40%AlliedProducts' WACC 8.06%New Aircraft Production (i.e. NEW GPWS Market)Probability Year 1 Year 2 Year 3 Year 4 Year 5Strong Growth 0.15 350 403 463 532 612Moderate Growth 0.45 250 275 303 333 366Mild Recession 0.30 150 159 169 179 189Severe Recession 0.10 50 52 53 55 56Expected New Airplane Production 215 237 261 289 319NEW GPWS Market Growth (Strong Growth) 15.00%NEW GPWS Market Growth (Moderate Growth) 10.00%NEW GPWS Market Growth (Mild Recession) 6.00%NEW GPWS Market Growth (Severe Recession state of economy) 3.00%Total Annual Market for UPGRADE GPWS (units) 2,500AlliedProducts Market Share in each market 45.00%Year 0 1 2 3 4 5SalesNEWUnits 97 107 118 130 144Price 70,000 72,100 74,263 76,491 78,786Total NEW 6,772,500 7,688,654 8,736,317 9,935,345 11,308,721UPGRADEUnits 1,125 1,125 1,125 1,125 1,125Price 35,000 36,050 37,132 38,245 39,393Total UPGRADE 39,375,000 40,556,250 41,772,938 43,026,126 44,316,909Total Sales 46,147,500 48,244,904 50,509,254 52,961,470 55,625,630Variable CostsNEW 4,837,500 5,491,896 6,240,226 7,096,675 8,077,658 UPGRADE 24,750,000 25,492,500 26,257,275 27,044,993 27,856,343Total Variable Costs 29,587,500 30,984,396 32,497,501 34,141,668 35,934,001SG&A 3,000,000 3,090,000 3,182,700 3,278,181 3,376,526 Depreciation 6,001,800 10,285,800 7,345,800 5,245,800 3,750,600EBIT 7,558,200 3,884,708 7,483,253 10,295,821 12,564,503Interest 0 0 0 0 0Tax 3,023,280 1,553,883 2,993,301 4,118,329 5,025,801 Net Income 4,534,920 2,330,825 4,489,952 6,177,493 7,538,702OCF = EBIT + Dep - Taxes 10,536,720 12,616,625 11,835,752 11,423,293 11,289,302Less: Change in NWC 2,000,000 307,375 104,870 113,218 122,611 (2,648,074)Less: Captial Spending 42,000,000 (10,948,080)CF from Assets: (44,000,000) 10,229,345 12,511,755 11,722,534 11,300,682 24,885,455Cumulative CF 10,229,345 22,741,100 34,463,634 45,764,316 70,649,771 (9,536,366) 0.84Discounted OCF 9,466,357 10,714,904 9,290,233 8,287,906 16,889,655Cumulative Discounted CF 9,466,357 20,181,261 29,471,494 37,759,400 54,649,055 10,649,055 0.63Total Discounted OCF 54,649,055Less: Investment (44,000,000)Net Present Value $ 10,649,055。
minicase_answerschapter2_
CHAPTER 2CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDSBelow are the financial statements that you are asked to prepare.1.The income statement for each year will look like this:Income statement2008 2009 Sales $247,259 $301,392Cost of goods sold 126,038 159,143Selling & administrative 24,787 32,352Depreciation 35,581 40,217EBIT $60,853 $69,680Interest 7,735 8,866EBT $53,118 $60,814Taxes 10,624 12,163Net income $42,494 $48,651Dividends $21,247 $24,326Addition to retained earnings 21,247 24,3262.The balance sheet for each year will be:Balance sheet as of Dec. 31, 2008Cash $18,187 Accounts payable $32,143 Accounts receivable 12,887 Notes payable 14,651 Inventory 27,119 Current liabilities $46,794 Current assets $58,193Long-term debt $79,235 Net fixed assets $156,975 Owners' equity 89,139 Total assets Total liab. & equityIn the first year, equity is not given. Therefore, we must calculate equity as a plug variable.Since total liabilities & equity is equal to total assets, equity can be calculated as:Equity = $215,168 – 46,794 – 79,235Equity = $89,139Balance sheet as of Dec. 31, 2009Cash $27,478 Accounts payable $36,404 Accounts receivable 16,717 Notes payable 15,997 Inventory 37,216 Current liabilities $52,401 Current assets $81,411Long-term debt $91,195 Net fixed assets $191,250 Owners' equity 129,065 Total assets Total liab. & equityThe owner’s equity for 2009 is the beginning of year owner’s equity, plus the addition toretained earnings, plus the new equity, so:Equity = $89,139 + 24,326 + 15,600Equity = $129,065ing the OCF equation:OCF = EBIT + Depreciation – TaxesThe OCF for each year is:OCF2008 = $60,853 + 35,581 – 10,624OCF2008 = $85,180OCF2009 = $69,680 + 40,217 – 12,163OCF2009 = $97,7344.To calculate the cash flow from assets, we need to find the capital spending and change innet working capital. The capital spending for the year was:Capital spendingEnding net fixed assets $191,250– Beginning net fixed assets 156,975+ Depreciation 40,217Net capital spending $74,492And the change in net working capital was:Change in net working capitalEnding NWC $29,010– Beginning NWC 11,399Change in NWC $17,611So, the cash flow from assets was:Cash flow from assetsOperating cash flow $97,734– Net capital spending 74,492– Change in NWC 17,611Cash flow from assets $ 5,6315.The cash flow to creditors was:Cash flow to creditorsInterest paid $8,866– Net new borrowing 11,960Cash flow to creditors –$3,0946.The cash flow to stockholders was:Cash flow to stockholdersDividends paid $24,326– Net new equity raised 15,600Cash flow to stockholders $8,726Answers to questions1.The firm had positive earnings in an accounting sense (NI > 0) and had positive cash flowfrom operations. The firm invested $17,611 in new net working capital and $74,492 in new fixed assets. The firm gave $5,631 to its stakeholders. It raised $3,094 from bondholders, and paid $8,726 to stockholders.2.The expansion plans may be a little risky. The company does have a positive cash flow,but a large portion of the operating cash flow is already going to capital spending. The company has had to raise capital from creditors and stockholders for its current operations.So, the expansion plans may be too aggressive at this time. On the other hand, companies do need capital to grow. Before investing or loaning the company money, you would want to know where the current capital spending is going, and why the company is spending so much in this area already.。
剑桥商务英语第三版答案
剑桥商务英语第三版答案【篇一：新编剑桥商务英语(bec 第三版中级)module 1】txt>1.1 business topic ways of working 商务话题篇工作方式1) vocabulary: different ways of working (15 mins)regular hours正常工作时间flexible (working) hours/flex(i)time 弹性工作时间teleworking n.电子办公；在家中上班job-share v. / n.分担工作；工作分担制shift work 轮班工作，倒班制temping n 当临时工，任临时雇员specialist advice 专业咨询〔指将职工分成不同的班次，以便他们能共用一间办公室，一张办公桌和一台电脑〕office gossip 办公室小道消息，办公室飞短流长office news办公室新闻credit n.赞扬，功绩managing director 总裁，总经理〔美英chiefexecutive/president〕 brainpower n. 智能worst-case adj. 做最坏打算的，为最坏情况的，为最不利条件的scenario n. 事态，局面full-time adj. 全日制的delegate v. 授权，分派工作availability n. 利用〔或获得的〕可能性，可以利用的人〔物〕，人员、物资保证parental leave育儿假，照顾新生儿女假daily log 日志voice mail 语音信箱，语音邮件self-organization n. 自我组织能力1. how do you work most effectively? by working…regular hours/flexible hours? in a team/on your own?from home/ in an office? for a boss/as your own boss?参考词语和表达：routine type of person 按部就班的人have flexible management of time and work 灵活安排自己的时间和工作get support from each other相互支持co-operate with each other 相互合作share ideas 交流想法learn from other people’s strong points 学他人所长working in a team needs to have good interpersonal skills and is not necessarily efficiently.在团队工作需要有很好的人际交往技能，不一定效率就高can be more concentrated and thus more efficient in an office在办公室更容易集中精力因此也更有效率 have more flexibility 享有更多的灵活度feel more relaxed 感觉更轻松a dependent type of person and never make decisions myself 性格依赖，不喜欢自己拿主意an independent type of person and would like to make decisions myself性格独立，喜欢自己做决定don’t want to work under someone不想在别人手下工作5. reading: how to job-shareget organizedset your limits put pen to papertwo become one 安排有序规定限度签订协议合二为一open your mind plan for disaster find the perfect partner don’t feel guilty 敞开心胸/开拓视野有备无患理想搭档勿感内疚1. share credit and blame 分担成绩与过失，意译“功过与共”2. flexecutive 经营内容蕴含其中的公司名flexible与executive两词复合而成“弹性经营管理”。
英语电子商务英语50题
英语电子商务英语50题1. In e-commerce, a “cart” is used to ______.A. make paymentsB. store selected itemsC. compare pricesD. receive discounts答案：B。
解析：在电子商务中，“购物车”用于存储所选物品。
选项A“make payments”表示付款；选项C“compare prices”表示比较价格；选项D“receive discounts”表示获得折扣。
均不符合“cart”的功能。
2. Which of the following is NOT a common payment method in e-commerce?A. Credit cardB. Cash on deliveryC. Personal checkD. Barter答案：D。
解析：在电子商务中，以物易物（Barter）不是常见的支付方式。
选项A 信用卡、选项B 货到付款、选项C 个人支票都是常见的支付方式。
3. When shopping online, “product reviews” help customers ______.A. find similar productsB. decide whether to buyC. contact the sellerD. get free shipping答案：B。
解析：在网上购物时，“产品评论”帮助顾客决定是否购买。
选项A 找到类似产品；选项C 联系卖家；选项D 获得免费送货，均不是“product reviews”的主要作用。
4. In e-commerce, “inventory” refers to ______.A. customer ordersB. available goodsC. shipping costsD. marketing strategies答案：B。
mini-case-business-finance-答案
Refer to Mini-Case on Page 360 (Conch Republic Electronics)Questions:1.What is the pay back period of the project?2.What is the profitability index of the project?3.What is the IRR of the project?4.What is the NPV of the project?5.How sensitive is the NPV to changes in the price of the new PDA?6.How sensitive is the NPV to changes in the quantity sold?7.Should Conch Republic produce the new PDA?Answer:Working process- Year 0: CF= －15000000- Year 1: CF=3740000－2520000=1220000S=70000×250－ (80000×240－ (80000－15000)×220)=12600000VC=70000×86－15000×68=5000000OCF= (S－VC－F)×(1－T) +DT= (12600000－5000000－3000000)×(1－35%) +15000000÷7×0.35=3740000NWC=－12600000×20%=－2520000- Year2: CF=5066000－580000=4486000S=80000×250－(60000×240－(60000－15000)×220)=15500000VC=80000×86－15000×68=5860000OCF= (15500000－5860000－3000000)×(1－35%) +15000000÷7×0.35=5066000NWC=2520000－15500000×20%=－580000- Year 3: CF=9460000－1900000=7560000S=100000×250=25000000VC=100000×86=8600000OCF= (25000000－8600000－3000000)×(1－35%) +15000000÷7×0.35=9460000NWC=15500000×20%－25000000×20%=－1900000- Year 4: CF=7861000+750000=8611000S=85000×250=21250000VC=85000×86=7310000OCF= (21250000－7310000－3000000)×(1－35%)+15000000÷7×0.35=7861000NWC=25000000×20%－21250000×20%=750000- Year 5: CF=6795000+4250000+3450000=14495000S=75000×250=18750000VC=75000×86=6450000OCF= (18750000－6450000－3000000)×(1－35%)+15000000÷7×0.35=6795000NWC=21250000×20%=4250000A-t S=3000000－0.35×(3000000－15000000÷ 7×(7－5))=34500001. year1: 15000000－1220000=13780000year2: 13780000－4486000=9294000year3: 9294000－7560000=1734000year4: 1734000－8611000=－6877000Payback Period of the Project=3+1734000÷8611000=3.20years2. PI= (present value of the net cash flows)/ (initial cash outlay)= (1220000÷ (1+12%) +4486000÷ (1+12%) 2 +7560000 ÷ (1+12%) 3 +8611000÷ (1+12%) 4 + 14495000÷(1+12%) 5)/15000000=1.5829Decision rule:Accept if PI > 1Reject if PI < 13. IRR —Internal Rate of Return1220000÷ (1+k) +4486000÷ (1+k) 2 +7560000 ÷ (1+k) 3 +8611000÷ (1+k) 4 + 14495000÷ (1+k)5 －15000000=0Use the trail and error methodk=12%, NPV=23743854.57－15000000=8743854.569k=14%, NPV=22251443.49－15000000=7251443.492k=20%, NPV=18484841.18－15000000=3484841.178k=30%, NPV=13952830.78－15000000=－1047169.217k=25%, NPV=15994547.2－15000000=994547.2k=27%, NPV=15492474.77－15000000=492474.7671k=29%, NPV=14440324.44－15000000=－669675.5627k=28%, NPV=14722498.73－15000000=－277501.2739k=27.5%, NPV=－75684.7173; k=27.3%, NPV==6140.9647; k=27.4%, NPV=－34851.1433x=27.64%IRR=27.85%>12%4. NPV=－15000000+1220000÷ (1+12%) +4486000÷ (1+12%) 2 +7560000 ÷ (1+12%) 3+8611000÷ (1+12%) 4 + 14495000÷ (1+12%) 5=8743854.569 5. =∆∆P NPV 6048.14871125020098743854.5611308274.33=-- P 1=250P 2=200- Year 1: CF=1465000－1820000=－355000S=70000×200－ (80000×240－ (80000－15000)×220)=9100000VC=70000×86－15000×68=5000000OCF= (S －VC －F)×(1－T) +DT= (9100000－5000000－3000000)×(1－35%) +15000000÷7×0.35=1465000NWC=－9100000×20%=－1820000- Year2: CF=2466000－480000=1986000S=80000×200－(60000×240－(60000－15000)×220)=11500000VC=80000×86－15000×68=5860000OCF= (11500000－5860000－3000000)×(1－35%) +15000000÷7×0.35=2466000NWC=1820000－11500000×20%=－480000- Year 3: CF=6210000－1700000=4510000S=100000×200=20000000VC=100000×86=8600000OCF= (20000000－8600000－3000000)×(1－35%) +15000000÷7×0.35=6210000NWC=11500000×20%－20000000×20%=－1700000- Year 4: CF=7861000+600000=8611000S=85000×200=17000000VC=85000×86=7310000OCF= (17000000－7310000－3000000)×(1－35%)+15000000÷7×0.35=5098500NWC=20000000×20%－17000000×20%=600000- Year 5: CF=4357500+3400000+3450000=11207500S=75000×200=15000000VC=75000×86=6450000OCF= (15000000－6450000－3000000)×(1－35%)+15000000÷7×0.35=4357500NWC=17000000×20%=3400000A-t S=3000000－0.35×(3000000－15000000÷ 7×(7－5))=34500005. NPV 2=－15000000+(－355000)÷ (1+12%) +1986000÷ (1+12%) 2 +4510000 ÷ (1+12%) 3+8611000÷ (1+12%) 4 + 11207500÷ (1+12%) 5=1308274.331 6. =∆∆Q NPV ()75.11821000033083639.1298743854.56=-- Q 1=70000; 80000; 100000; 85000; 75000Q 2=60000; 70000; 90000; 75000; 65000- Year 1: CF=724000－1420000=－696000S=60000×200－ (80000×240－ (80000－15000)×220)=7100000VC=60000×86－15000×68=4140000OCF= (S－VC－F)×(1－T) +DT= (7100000－4140000－3000000)×(1－35%) +15000000÷7×0.35=724000NWC=－7100000×20%=－1420000- Year2: CF=1725000－480000=1245000S=70000×200－(60000×240－(60000－15000)×220)=9500000VC=70000×86－15000×68=5000000OCF= (9500000－5000000－3000000)×(1－35%) +15000000÷7×0.35=1725000NWC=1420000－9500000×20%=－480000- Year 3: CF=5469000－1700000=3769000S=90000×200=18000000VC=90000×86=7740000OCF= (18000000－7740000－3000000)×(1－35%) +15000000÷7×0.35=5469000NWC=9500000×20%－18000000×20%=－1700000- Year 4: CF=4357500+600000=4957500S=75000×200=15000000VC=75000×86=6450000OCF= (15000000－6450000－3000000)×(1－35%)+15000000÷7×0.35=4357500NWC=18000000×20%－15000000×20%=600000- Year 5: CF=3616500+3000000+3450000=10066500S=65000×200=13000000VC=65000×86=5590000OCF= (13000000－5590000－3000000)×(1－35%)+15000000÷7×0.35=3616500NWC=15000000×20%=3000000A-t S=3000000－0.35×(3000000－15000000÷ 7×(7－5))=3450000=－15000000+(－696000)÷ (1+12%) +1245000÷ (1+12%) 2 +3769000÷ (1+12%) 36.NPV2+4957500÷ (1+12%) 4 +10066500÷ (1+12%) 5=－3083639.1237.From the answer of question 4, we can see the NPV of the project is positive, so Conch Republicshould produce the new PDA6。
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Refer to Mini-Case on Page 360 (Conch Republic Electronics)Questions:1.What is the pay back period of the project?2.What is the profitability index of the project?3.What is the IRR of the project?4.What is the NPV of the project?5.How sensitive is the NPV to changes in the price of the new PDA?6.How sensitive is the NPV to changes in the quantity sold?7.Should Conch Republic produce the new PDA?Answer:Working process- Year 0: CF= －15000000- Year 1: CF=3740000－2520000=1220000S=70000×250－(80000×240－(80000－15000)×220)=12600000VC=70000×86－15000×68=5000000OCF= (S－VC－F)×(1－T) +DT= (12600000－5000000－3000000)×(1－35%) +15000000÷7×0.35=3740000NWC=－12600000×20%=－2520000- Year2: CF=5066000－580000=4486000S=80000×250－(60000×240－(60000－15000)×220)=15500000VC=80000×86－15000×68=5860000OCF= (15500000－5860000－3000000)×(1－35%) +15000000÷7×0.35 =5066000NWC=2520000－15500000×20%=－580000- Year 3: CF=9460000－1900000=7560000S=100000×250=25000000VC=100000×86=8600000OCF= (25000000－8600000－3000000)×(1－35%) +15000000÷7×0.35 =9460000NWC=15500000×20%－25000000×20%=－1900000- Year 4: CF=7861000+750000=8611000S=85000×250=21250000VC=85000×86=7310000OCF= (21250000－7310000－3000000)×(1－35%)+15000000÷7×0.35 =7861000NWC=25000000×20%－21250000×20%=750000- Year 5: CF=6795000+4250000+3450000=14495000S=75000×250=18750000VC=75000×86=6450000OCF= (18750000－6450000－3000000)×(1－35%)+15000000÷7×0.35 =6795000NWC=21250000×20%=4250000A-t S=3000000－0.35×(3000000－15000000÷ 7×(7－5))=34500001. year1: 15000000－1220000=13780000year2: 13780000－4486000=9294000year3: 9294000－7560000=1734000year4: 1734000－8611000=－6877000Payback Period of the Project=3+1734000÷8611000=3.20years2. PI= (present value of the net cash flows)/ (initial cash outlay)= (1220000÷ (1+12%) +4486000÷ (1+12%) 2 +7560000 ÷ (1+12%) 3 +8611000÷ (1+12%) 4+ 14495000÷ (1+12%) 5)/15000000=1.5829Decision rule:Accept if PI > 1Reject if PI < 13. IRR —Internal Rate of Return0)1(01=-+∑=C r CF nt t t 1220000÷ (1+k) +4486000÷ (1+k) 2 +7560000 ÷ (1+k) 3 +8611000÷ (1+k) 4 + 14495000÷ (1+k) 5 －15000000=0Use the trail and error methodk=12%, NPV=23743854.57－15000000=8743854.569k=14%, NPV=22251443.49－15000000=7251443.492k=20%, NPV=18484841.18－15000000=3484841.178k=30%, NPV=13952830.78－15000000=－1047169.217k=25%, NPV=15994547.2－15000000=994547.2k=27%, NPV=15492474.77－15000000=492474.7671k=29%, NPV=14440324.44－15000000=－669675.5627k=28%, NPV=14722498.73－15000000=－277501.2739k=27.5%, NPV=－75684.7173; k=27.3%, NPV==6140.9647; k=27.4%, NPV=－34851.1433 %277671.4924740%28%279)277501.273(1492474.767--=---x x=27.64%IRR=27.85%>12%4. NPV=－15000000+1220000÷ (1+12%) +4486000÷ (1+12%) 2 +7560000 ÷ (1+12%) 3+8611000÷ (1+12%) 4 + 14495000÷ (1+12%) 5=8743854.5695. =∆∆PN P V 6048.14871125020098743854.5611308274.33=-- P 1=250P 2=200- Year 1: CF=1465000－1820000=－355000S=70000×200－ (80000×240－ (80000－15000)×220)=9100000VC=70000×86－15000×68=5000000OCF= (S －VC －F)×(1－T) +DT= (9100000－5000000－3000000)×(1－35%) +15000000÷7×0.35=1465000NWC=－9100000×20%=－1820000 - Year2:CF=2466000－480000=1986000S=80000×200－(60000×240－(60000－15000)×220)=11500000VC=80000×86－15000×68=5860000OCF= (11500000－5860000－3000000)×(1－35%) +15000000÷7×0.35=2466000NWC=1820000－11500000×20%=－480000 - Year 3:CF=6210000－1700000=4510000S=100000×200=20000000VC=100000×86=8600000OCF= (20000000－8600000－3000000)×(1－35%) +15000000÷7×0.35=6210000NWC=11500000×20%－20000000×20%=－1700000 - Year 4:CF=7861000+600000=8611000S=85000×200=17000000VC=85000×86=7310000OCF= (17000000－7310000－3000000)×(1－35%)+15000000÷7×0.35=5098500NWC=20000000×20%－17000000×20%=600000 - Year 5:CF=4357500+3400000+3450000=11207500S=75000×200=15000000VC=75000×86=6450000OCF= (15000000－6450000－3000000)×(1－35%)+15000000÷7×0.35=4357500NWC=17000000×20%=3400000A-t S=3000000－0.35×(3000000－15000000÷ 7×(7－5))=34500005. NPV 2=－15000000+(－355000)÷ (1+12%) +1986000÷ (1+12%) 2 +4510000 ÷ (1+12%) 3+8611000÷ (1+12%) 4 + 11207500÷ (1+12%) 5=1308274.3316. =∆∆QNPV ()75.11821000033083639.1298743854.56=-- Q 1=70000; 80000; 100000; 85000; 75000Q 2=60000; 70000; 90000; 75000; 65000- Year 1: CF=724000－1420000=－696000S=60000×200－ (80000×240－ (80000－15000)×220)=7100000VC=60000×86－15000×68=4140000OCF= (S －VC －F)×(1－T) +DT= (7100000－4140000－3000000)×(1－35%) +15000000÷7×0.35 =724000NWC=－7100000×20%=－1420000- Year2: CF=1725000－480000=1245000S=70000×200－(60000×240－(60000－15000)×220)=9500000VC=70000×86－15000×68=5000000OCF= (9500000－5000000－3000000)×(1－35%) +15000000÷7×0.35 =1725000NWC=1420000－9500000×20%=－480000- Year 3: CF=5469000－1700000=3769000S=90000×200=18000000VC=90000×86=7740000OCF= (18000000－7740000－3000000)×(1－35%) +15000000÷7×0.35 =5469000NWC=9500000×20%－18000000×20%=－1700000- Year 4: CF=4357500+600000=4957500S=75000×200=15000000VC=75000×86=6450000OCF= (15000000－6450000－3000000)×(1－35%)+15000000÷7×0.35=4357500NWC=18000000×20%－15000000×20%=600000- Year 5: CF=3616500+3000000+3450000=10066500S=65000×200=13000000VC=65000×86=5590000OCF= (13000000－5590000－3000000)×(1－35%)+15000000÷7×0.35=3616500NWC=15000000×20%=3000000A-t S=3000000－0.35×(3000000－15000000÷ 7×(7－5))=3450000=－15000000+(－696000)÷ (1+12%) +1245000÷ (1+12%) 2 +3769000÷ (1+12%) 3 6.NPV2+4957500÷ (1+12%) 4 +10066500÷ (1+12%) 5=－3083639.1237.From the answer of question 4, we can see the NPV of the project is positive, so ConchRepublic should produce the new PDA6。