米什金《金融市场与金融机构》课后习题答案
金融市场与金融机构中文答案
金融市场与金融机构中文答案【篇一：fabozzi_金融市场与金融机构基础课后答案】the u.s. federal reserveand the creation of moneycentral banks and their purposethe primary role of a central bank is to maintain the stability of the currency and money supply for a country or a group of countries. the role of central banks can be categorized as: (1) risk assessment, (2) risk reduction, (3) oversight of payment systems, (4) crisis management.one of the major ways a central bank accomplishes its goals is through monetary policy. for this reason, central banks are sometimes called monetary authority. in implementing monetary policy, central banks, acting as a reserve bank, require private banks to maintain and deposit the required reserves with the central bank. in times of financial crisis, central banks perform the role of lender of last resort for the banking system. countries throughout the world may have central banks. additionally, the european central bank is responsible for implementing monetary policy for the member countries of the european union.in implementing monetary and economic policies, the united states is a member of an informal network of nations. this group started in 1976 as the group of 6, or g6: us, france, germany, uk, italy, and japan. thereafter, canada joined to for the g7. in 1998, russia joined to form the g8.the central bank of the united states: the federal reserve systemthe federal reserve system consists of 12 banking districts covering the entire country. created in 1913, the federal reserve is the government agency responsible for the management of the us monetary and banking systems. it is independent of the political branches of government. the fed is managed by a seven-member board of governors, who are appointed by the president and approved by congress.the fed’s tools for monetary management have been made more difficult by financial innovations. the public’s increasing acceptance of money market mutual funds has funneled alarge amount of money into what are essentially interest-bearing checking accounts. securitization permits commercial banks to change what once were illiquid consumer loans of several varieties into securities. selling these securities gives the banks a source of funding that is outside the fed’s influence.instrument of monetary policy: how the fed influences the supply of moneythe fed has three instruments at its disposal to affect the level of reserves.under our fractional reserve banking system have to maintain specified fractional amounts of reserves against their deposits. the fed can raise or lower these required reserve ratios, thereby permitting banks to decrease or increase their lending and investment portfolios. a bank’s total reserves equal its required reserves plus any excess reserves.the fed’s most powerful instrument is its authority to conduct open market operation. it buys and sells in open debt markets government securities for its own accounts. the fed prefers to use treasury bills because it can make its substantial transactions without seriously disrupting the prices or yields of bills.the federal open market committee, or fomc, is the unit that decides on the general issues of changing the rate of growth in the money supply, by open market sales or purchases of securities. the implementation of policy through open market operations is the responsibility of the trading desk of the federal reserve bank of new york.the fed often employs variants of simple open market purchases and sales, these are called the repurchase agreement (or repo) and the reverse repo. in a repo, the fed buys a particular amount of securities from a seller that agrees to repurchase the same number of securities for a higher price at some future time. in a reverse repo, the fed sells securities and makes a commitment to buy them back at a higher price later.a bank borrowing from the fed is said to use the discount window. the discount rate is the rate charged to banks borrowing directly from the fed. raising the rate is designed todiscourage such borrowing, while lowering should have the opposite effect.different kinds of moneymoney is that item which serves as a numeraire. in a basic sense money can be defined as anything that serves as a unit of account and medium of exchange. we measure prices in dollars and exchange dollars for goods. hence coins, currency, and any items readily exchanged into dollars (checking deposits or now accounts) constitute our money supply.money and monetary aggregatesmonetary aggregates measure the amount of money available to the economy at any time. the monetary base is defined as currency in circulation (coins and federal reserve notes) and reserves in the banking system. the instruments that serve as a medium of exchange can be narrowly defined as m1, which is currency and demand deposits. m2 is m1 plus time and savings accounts, and money market mutual funds. finally, m3 is m2 plus short-term treasury liabilities. while all three aggregates are watched and monitored, m1 is the most common form of the money supply, with its trait as being the most liquid. the ratio of the money supply to the economy’s income is known as the velocity of money.the money multipier: the expansion of the money supplythe money multiplier effect arises from the fact that a small change in reserves can produce a large change in the money supply. through our fractional reserve system, a small increase will allow an individual bank, to lend out the greater part of these additional funds. these loans subsequently become deposits in other banks allowing them to expand proportionately. so, while one bank can expand its loans (or deposits) by an amount 1% of reserves required, all banks in the system can do likewise. thus, in a simple format total change in deposits can be stated as change in reserves divided by the reserve requirement, which is also the formula for perpetuity. for example, if the change in the level of reserves is $100 and the reserve requirement is 20%, the change in total deposits will be $500 for a multiplier of 5. of course, major assumptions are that banks will fully loan out their excess reserves and that depositors will not withdraw any of these extra reserves.the impact of interest rates on the money supplyhigh rates of interest may make keeping excess reserves costly, since unused funds represent loans not made and interest not earned. high rates of interest will also affect the public’s demand for hol ding cash. if deposits pay competitive interest rates, customers will be more willing to hold such bank liabilities and less cash. therefore, a higher rate of interest can actually spur growth of the money supply. more likely, however, it will deter borrowing and slow monetary growth.the money supply process in an open economyin the modern era, almost every country has an open economy. foreign commercial and central banks hold dollar accounts in the united states. their purchases and sales of these deposits can affect exchange rates of the dollar against their own currency. the fed has responsibility for maintaining stability in exchange rates. a purchase of foreign exchange with dollars depreciates the dollar’s value, but it also adds dollars to the accounts of foreign banks in this country, thus adding to the u.s. monetary base. most central banks of large economies own or stand ready to own a large amount of each of the world’s major currencies, which are considered international reserves. sales of foreign exchange transactions have monetary base implication and hence consequences for the domestic money supply, emphasis is given to coordinating monetarypolicies among developed nations.answers to questions for chapter 4(questions are in bold print followed by answers.)1. what is the role of a central bank?the role of a central bank has several functions: risk assessment, risk reduction, oversight of payment systems, and crisis management. it can do this through monetary policies, and through the implementation of regulations.2. why is it argued that a central bank should be independent of the government?central banks should be independent of the short-term political interests and political influences generally in setting economic policies.3. identify each participant and its role in the process bywhich the money supply changes and monetary policy is implemented.the fed determines monetary policy and seeks to implement it through changes in reserves. it is up to the nation’s banking system to act on changes in reserves thereby affecting deposits, which constitute the greater part of the m1 definitionof the money supply.4. describe the structure of the board of governors of the federal reserve system.the board of governors of the federal reserve system consistsof 7 members who are appointed to staggered 14-year terms.the board reviews discount operations and sets legal reserve requirements. in addition, all 7 members of the board serve on the federal open market committee (fomc), which determinesthe direction and magnitude of open-market operations. such operations constitute the key instrument for implementing monetary policy.5.a. explain what is meant by the statement “the united stateshas a fractional reserve banking system.”b. how are these items related: total reserves, required reserves, and excess reserves?a. a fractional reserve system requires that a fraction orpercent of a bank’s reserve be placed either in currency invault or with the federal reserve system.b. total reserves are the amounts that banks hold in cash or at the fed. required reserves are amounts required by the fed to meet some specific or legal reserve ratio to deposits. excess reserves are bank reserves in currency and at the fed whichare in excess of legal requirements. since these amounts arenon-interest bearing, banks are often willing to lend these surplus funds to deficit banks at the fed funds rate.【篇二：金融市场与金融机构基础(第9章) 英文版答案】ter 9(questions are in bold print followed by answers.)1. your broker is recommending that you purchase u.s. government bonds. here is the explanation: listen, in thesetimes of uncertainty, with many companies going bankrupt, itmakes sense to play it safe and purchase long-term government bonds. they are issued by the u.s. government, so they are risk free. how would you respond to the broker?u.s. government bonds may be free of default risk, but they are not free from interest rate risk, which may cause the bond price to decline, resulting in a capital loss should the holder of bond sell it before maturity. even then there is the inflation premium risk, which means that the principal may have less purchasing power at maturity than it does today.2. you just inherited 30,000 shares of a company you have never heard of, abd corporation. you call your broker to find out if you have finally struck it rich. afterseveral minutes, she comes back on the telephone and says: “i don’t have a clue about these shares. it’s too bad they are not traded in a financial market. that would make life a lot easier for you. ”what does she mean by this?if the shares are traded on the market, and if the market is efficient, the current price would denote the value of the stock. without market price information, share value would have to be approximated through other time-consuming and less reliable methods.3. suppose you own a bond that pays $75 yearly in coupon interest and that is likely to be called in two years (because the firm has already announced that it will redeem the issue early). the call price will be $1,050.what is the price of your bond now, in the market, if the appropriate discount rate for this asset is 9%?po = $75 (pvifa) 2.09 + $1050 (pvif) 2.09= $75 x 1.7591 + $1050 x .8417 = $1015.724. your broker has advised you to buy shares of hungry boy fast foods, which has paid a dividend of $1.00 per year for 10 years and will (according to the broker) continue to do so for many years. the broker believes that the stock, which now has a price of $12, will be worth $25 per share in five years. you have good reason to think that the discount rate for this firm’s stock is 22% per year, because that rate compensates the buyer for all pertinent risks. is the stock’s present price a good approximation of its true financial value?po = $1 (pvifa) 5.22 + $25 x (pvif) 5.22 = .3715 = $12.15the price is right, in fact the stock is slightly undervalued.5. you have been considering a zero-coupon bond, which pays no interest but will pay a principal of $1,000 at the end of five years. the price of the bond is now $712.99, and its required rate of return is 7.0%. this morning’s news contained a surprising development. the government announced that the rate of inflation appears to be 5.5% instead of the 4% that most people had been expecting. (suppose most people had thought the real rate of interest was 3%.) what would be the price of the bond, once the market began to absorb this new information about inflation?the nominal required rate of return is (real rate plus inflation) ir + if or currently 3% plus 4% = 7%. if if becomes 5.5% then the new required rate of return becomes 8.5%. the price of the bond would then be $1000/(1.085)5 or $665.05.6. state the difference in basis points between each of the following:a. 5.5% and 6.5%b. 7% and 9%c. 6.4% and 7.8%d. 9.1% and 11.9%a. 100 basis pointsb. 200 basis pointsc. 140 basis pointsd. 280 basis points7.a. does a rise of 100 basis points in the discount rate change the price of a 20-year bond as much as it changes the price of a four-year bond, assuming that both bonds have the same coupon rate and offer the same yield?b. does a rise of 100 basis points in the discount rate change the price of a 4% coupon bond as much as it changes the price of a 10% coupon bond, assuming that both bonds have the same maturity and offer the same yield?c. does a rise of 100 basis points in the discount rate change the price of a 10-year bond to the same extent if the discount rate is 4% as it does if the discount rate is 12%?a. the price of the 20-year bond will fall more than that of the 4-year bond because there are more years for the new discount to apply to the cash flows of the 20-year bond.b. the price of the low coupon bond will change more due to the low amount of cash flows that can be reinvested at the higher rate.c. a change from the 4% base will lead to a larger change in price.8.during the early 1980s, interest rates for many long-term bonds were above 14%. in the early 1990s, rates on similar bonds were far lower. what do you think this dramatic decline in market interest rates means for the price volatility of bonds in response to a change in interest rates?since the direction of the interest rate change is downward, price volatility should increase.9.a. what is the cash flow of a 6% coupon bond that pays interest annually, matures in seven years, and has a principal of $1,000?b. assuming a discount rate of 8%, what is the price of this bond?c. assuming a discount rate of 8.5%, what is the price of this bond?d. assuming a discount rate of 7.5%, what is the price of this bond?e. what is the duration of this bond, assuming that the price is the one you calculated in part (b)?f. if the yield changes by 100 basis points, from 8% to 7%, by how much would you approximate the percentage price change to be using your estimate of duration in part (e)?g. what is the actual percentage price change if the yield changes by 100 basis points?a. $60 a year interest for 7 years plus $1000 principal in year 7 for a total of $1420 in cash flow.b. 5.2064 x $60 + .583 x $1000 = $895.38c. 5.119 x $60 + .565 x $1000 = $872.14d. 5.297 x $60 + .603 x $1000 = $920.82e. =$48.68/8.95=5.44$895.38 (0.85-.075)f. applying the formula-d (change in yield) = -5.44 (.01) or a price increase of 5.42%.g. price at 8% =$895.88, at 7% = $946.06, so actual percentage change is ($946.06 - $895.88)/$895.88=5.6%.10. why is it important to be able to estimate the duration of a bond or bond portfolio?to answer this question, we must understand that duration is related to percentage price change.a simple formula can be used to calculate the approximate duration of a bond or bond portfolio. all we are interested in is the percent price change of a bond when interest rates change by a small amount. to control interest rate risk, it is thus necessary to be able to measure it. duration provides that measure.11. explain why you agree or disagree with the following statement: “determining the duration of a financial asset is a simple process.”disagree. determining the duration of a financial asset is not simple process. because for most assets, the cash flow can change when interest rates change. therefore, if a change in the cash flow is not considered, duration calculations can be misleading.12. explain why the effective duration is a more appropriate measure of a complexfinancial instrument’s price sensitiv ity to interest rate changes than is modified duration.modified duration is derived with the assumption that cash flows do not change as interest rates change. effective duration is calculated with the assumption of changing cash flows. for complex finan cial instruments’ price sensitivity to interest rate changes could be very large. hence, the importance of effective duration becomes significant.【篇三：米什金《金融市场与金融机构》课后习题及其答案】class=txt>345。
金融市场与金融机构答案中文
金融市场与金融机构答案中文【篇一：fabozzi_金融市场与金融机构基础课后答案】the u.s. federal reserveand the creation of moneycentral banks and their purposethe primary role of a central bank is to maintain the stability of the currency and money supply for a country or a group of countries. the role of central banks can be categorized as: (1) risk assessment, (2) risk reduction, (3) oversight of payment systems, (4) crisis management.one of the major ways a central bank accomplishes its goals is through monetary policy. for this reason, central banks are sometimes called monetary authority. in implementing monetary policy, central banks, acting as a reserve bank, require private banks to maintain and deposit the required reserves with the central bank. in times of financial crisis, central banks perform the role of lender of last resort for the banking system. countries throughout the world may have central banks. additionally, the european central bank is responsible for implementing monetary policy for the member countries of the european union.there is widespread agreement that central banks should be independent of the government so that decisions of the central bank will not be influenced for short-term political purposes such as pursuing a monetary policy to expand the economy but at the expense of inflation.in implementing monetary and economic policies, the united states is a member of an informal network of nations. this group started in 1976 as the group of 6, or g6: us, france, germany, uk, italy, and japan. thereafter, canada joined to for the g7. in 1998, russia joined to form the g8.the central bank of the united states: the federal reserve systemthe federal reserve system consists of 12 banking districts covering the entire country. created in 1913, the federal reserve is the government agency responsible for the management of the us monetary and banking systems. it is independent of the political branches of government. the fed ismanaged by a seven-member board of governors, who are appointed by the president and approved by congress.the fed’s tools for monetary management have been made more difficult by financial innovations. the public’s increasing acceptance of money market mutual funds has funneled a large amount of money into what are essentially interest-bearing checking accounts. securitization permits commercial banks to change what once were illiquid consumer loans of several varieties into securities. selling these securities gives the banks a source of funding that is outside the fed’s influence.instrument of monetary policy: how the fed influences the supply of moneythe fed has three instruments at its disposal to affect the level of reserves.under our fractional reserve banking system have to maintain specified fractional amounts of reserves against their deposits. the fed can raise or lower these required reserve ratios, thereby permitting banks to decrease or increase their lending and investment portfolios. a bank’s total reserves equal its required reserves plus any excess reserves.the fed’s most powerful instrument is its authority to conduct open market operation. it buys and sells in open debt markets government securities for its own accounts. the fed prefers to use treasury bills because it can make its substantial transactions without seriously disrupting the prices or yields of bills.the federal open market committee, or fomc, is the unit that decides on the general issues of changing the rate of growth in the money supply, by open market sales or purchases of securities. the implementation of policy through open market operations is the responsibility of the trading desk of the federal reserve bank of new york.the fed often employs variants of simple open market purchases and sales, these are called the repurchase agreement (or repo) and the reverse repo. in a repo, the fed buys a particular amount of securities from a seller that agrees to repurchase the same number of securities for a higher price at some future time. in a reverse repo, the fed sells securitiesand makes a commitment to buy them back at a higher price later.a bank borrowing from the fed is said to use the discount window. the discount rate is the rate charged to banks borrowing directly from the fed. raising the rate is designed to discourage such borrowing, while lowering should have the opposite effect.different kinds of moneymoney is that item which serves as a numeraire. in a basic sense money can be defined as anything that serves as a unit of account and medium of exchange. we measure prices in dollars and exchange dollars for goods. hence coins, currency, and any items readily exchanged into dollars (checking deposits or now accounts) constitute our money supply.money and monetary aggregatesmonetary aggregates measure the amount of money available to the economy at any time. the monetary base is defined as currency in circulation (coins and federal reserve notes) and reserves in the banking system. the instruments that serve as a medium of exchange can be narrowly defined as m1, which is currency and demand deposits. m2 is m1 plus time and savings accounts, and money market mutual funds. finally, m3 is m2 plus short-term treasury liabilities. while all three aggregates are watched and monitored, m1 is the most common form of the money supply, with its trait as being the most liquid. the ratio of the money supply to the economy’s income is known as the velocity of money.the money multipier: the expansion of the money supplythe money multiplier effect arises from the fact that a small change in reserves can produce a large change in the money supply. through our fractional reserve system, a small increase will allow an individual bank, to lend out the greater part of these additional funds. these loans subsequently become deposits in other banks allowing them to expand proportionately. so, while one bank can expand its loans (or deposits) by an amount 1% of reserves required, all banks in the system can do likewise. thus, in a simple format total change in deposits can be stated as change in reserves divided by the reserve requirement, which is also the formula for perpetuity. for example, if the change in the level ofreserves is $100 and the reserve requirement is 20%, the change in total deposits will be $500 for a multiplier of 5. of course, major assumptions are that banks will fully loan out their excess reserves and that depositors will not withdraw any of these extra reserves.the impact of interest rates on the money supplyhigh rates of interest may make keeping excess reserves costly, since unused funds represent loans not made and interest not earned. high rates of interest will also affect the pub lic’s demand for holding cash. if deposits pay competitive interest rates, customers will be more willing to hold such bank liabilities and less cash. therefore, a higher rate of interest can actually spur growth of the money supply. more likely, however, it will deter borrowing and slow monetary growth.the money supply process in an open economyin the modern era, almost every country has an open economy. foreign commercial and central banks hold dollar accounts in the united states. their purchases and sales of these deposits can affect exchange rates of the dollar against their own currency. the fed has responsibility for maintaining stability in exchange rates. a purchase of foreign exchange with dollars depreciates the dollar’s value, but it also adds dollars to the accounts of foreign banks in this country, thus adding to the u.s. monetary base. most central banks of large economies own or stand ready to own a large amount of each of the world’s major currencies, which are considered international reserves. sales of foreign exchange transactions have monetary base implication and hence consequences for the domestic money supply, emphasis is given to coordinating monetarypolicies among developed nations.answers to questions for chapter 4(questions are in bold print followed by answers.)1. what is the role of a central bank?the role of a central bank has several functions: risk assessment, risk reduction, oversight of payment systems, and crisis management. it can do this through monetary policies, and through the implementation of regulations.2. why is it argued that a central bank should be independent of the government?central banks should be independent of the short-term political interests and political influences generally in setting economic policies.3. identify each participant and its role in the process by which the money supply changes and monetary policy is implemented.the fed determines monetary policy and seeks to implement it through changes in reserves. it is up to the nation’s banking system to act on changes in reserves thereby affecting deposits, which constitute the greater part of the m1 definition of the money supply.4. describe the structure of the board of governors of the federal reserve system.the board of governors of the federal reserve system consists of 7 members who are appointed to staggered 14-year terms. the board reviews discount operations and sets legal reserve requirements. in addition, all 7 members of the board serve on the federal open market committee (fomc), which determines the direction and magnitude of open-market operations. such operations constitute the key instrument for implementing monetary policy.5.a. explain what is meant by the statement “the united states has a fractional reserve banking system.”b. how are these items related: total reserves, required reserves, and excess reserves?a. a fractional reserve system requires that a fraction or percent of a bank’s reserve be placed either in currency in vault or with the federal reserve system.b. total reserves are the amounts that banks hold in cash or at the fed. required reserves are amounts required by the fed to meet some specific or legal reserve ratio to deposits. excess reserves are bank reserves in currency and at the fed which are in excess of legal requirements. since these amounts are non-interest bearing, banks are often willing to lend these surplus funds to deficit banks at the fed funds rate.【篇二：米什金《金融市场与金融机构》课后习题及其答案】class=txt>345【篇三：金融市场习题及答案】>1．金融市场是一个包括许多子系统的大系统；子系统之间也并不是简单的并列关系。
金融市场学双语题库及答案(第十四章)米什金《金融市场与机构》
Financial Markets and Institutions, 8e (Mishkin)Chapter 14 The Mortgage Markets14.1 Multiple Choice1) Which of the following are important ways in which mortgage markets differ from the stock and bond markets?A) The usual borrowers in the capital markets are government entities and businesses, whereas the usual borrowers in the mortgage markets are individuals.B) Most mortgages are secured by real estate, whereas the majority of capital market borrowing is unsecured.C) Because mortgages are made for different amounts and different maturities, developing a secondary market has been more difficult.D) All of the above are important differences.E) Only A and B of the above are important differences.Answer: DTopic: Chapter 14.1 What Are Mortgages?Question Status: Previous Edition2) Which of the following are important ways in which mortgage markets differ from stock and bond markets?A) The usual borrowers in capital markets are government entities, whereas the usual borrowers in mortgage markets are small businesses.B) The usual borrowers in capital markets are government entities and large businesses, whereas the usual borrowers in mortgage markets are small businesses.C) The usual borrowers in capital markets are government entities and large businesses, whereas the usual borrowers in mortgage markets are small businesses and individuals.D) The usual borrowers in capital markets are businesses and government entities, whereas the usual borrowers in mortgage markets are individuals.Answer: DTopic: Chapter 14.1 What Are Mortgages?Question Status: Previous Edition3) Which of the following are true of mortgages?A) A mortgage is a long-term loan secured by real estate.B) A borrower pays off a mortgage in a combination of principal and interest payments that result in full payment of the debt by maturity.C) Over 80 percent of mortgage loans finance residential home purchases.D) All of the above are true of mortgages.E) Only A and B of the above are true of mortgages.Answer: DTopic: Chapter 14.1 What Are Mortgages?Question Status: Previous Edition4) Which of the following are true of mortgages?A) A mortgage is a long-term loan secured by real estate.B) Borrowers pay off mortgages over time in some combination of principal and interest payments that result in full payment of the debt by maturity.C) Less than 65 percent of mortgage loans finance residential home purchases.D) All of the above are true of mortgages.E) Only A and B of the above are true of mortgages.Answer: ETopic: Chapter 14.1 What Are Mortgages?Question Status: Previous Edition5) Which of the following are true of mortgage interest rates?A) Interest rates on mortgage loans are determined by three factors: current long-term market rates, the term of the mortgage, and the number of discount points paid.B) Mortgage interest rates tend to track along with Treasury bond rates.C) The interest rate on 15-year mortgages is lower than the rate on 30-year mortgages, all else the same.D) All of the above are true.E) Only A and B of the above are true.Answer: DTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition6) Which of the following are true of mortgages?A) More than 80 percent of mortgage loans finance residential home purchases.B) The National Banking Act of 1863 rewarded banks that increased mortgage lending.C) Most mortgages during the 1920s and 1930s were balloon loans.D) All of the above are true.E) Only A and C of the above are true.Answer: ETopic: Chapter 14.1 What Are Mortgages?Question Status: Previous Edition7) Which of the following is true of mortgage interest rates?A) Longer-term mortgages have lower interest rates than shorter-term mortgages.B) Mortgage rates are lower than Treasury bond rates because of the tax deductibility of mortgage interest rates.C) In exchange for points, lenders reduce interest rates on mortgage loans.D) All of the above are true.E) Only A and B of the above are true.Answer: CTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition8) Typically, discount points should not be paid if the borrower will pay off the loan in ________ years or less.A) 5B) 10C) 15D) 20Answer: ATopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition9) Which of the following is true of mortgage interest rates?A) Longer-term mortgages have higher interest rates than shorter-term mortgages.B) In exchange for points, lenders reduce interest rates on mortgage loans.C) Mortgage rates are lower than Treasury bond rates because of the tax deductibility of mortgage interest payments.D) All of the above are true.E) Only A and B of the above are true.Answer: ETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition10) Which of the following reduces moral hazard for the mortgage borrower?A) CollateralB) Down paymentsC) Private mortgage insuranceD) Borrower qualificationsAnswer: BTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition11) Which of the following protects the mortgage lender's right to sell property if the underlying loan defaults?A) A lienB) A down paymentC) Private mortgage insuranceD) Borrower qualificationE) AmortizationAnswer: ATopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition12) Which of the following is true of mortgage interest rates?A) Mortgage rates are closely tied to Treasury bond rates, but mortgage rates tend to stay below Treasury rates because mortgages are secured with collateral.B) Longer-term mortgages have higher interest rates than shorter-term mortgages.C) Interest rates are higher on mortgage loans on which lenders charge points.D) All of the above are true.E) Only A and B of the above are true.Answer: BTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition13) During the early years of an amortizing mortgage loan, the lender appliesA) most of the monthly payment to the outstanding principal balance.B) all of the monthly payment to the outstanding principal balance.C) most of the monthly payment to interest on the loan.D) all of the monthly payment to interest on the loan.E) the monthly payment equally to interest on the loan and the outstanding principal balance.Answer: CTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition14) During the last years of an amortizing mortgage loan, the lender appliesA) most of the monthly payment to the outstanding principal balance.B) all of the monthly payment to the outstanding principal balance.C) most of the monthly payment to interest on the loan.D) all of the monthly payment to interest on the loan.E) the monthly payment equally to interest on the loan and the outstanding principal balance.Answer: ATopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition15) During the last years of a balloon mortgage loan, the lender appliesA) most of the monthly payment to the outstanding principal balance.B) all of the monthly payment to the outstanding principal balance.C) most of the monthly payment to interest on the loan.D) all of the monthly payment to interest on the loan.E) the monthly payment equally to interest on the loan and the outstanding principal balance.Answer: DTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition16) During the early years of a balloon mortgage loan, the lender appliesA) most of the monthly payment to the outstanding principal balance.B) all of the monthly payment to the outstanding principal balance.C) most of the monthly payment to interest on the loan.D) all of the monthly payment to interest on the loan.E) the monthly payment equally to interest on the loan and the outstanding principal balance.Answer: DTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition17) A borrower who qualifies for an FHA or VA loan enjoys the advantage thatA) the mortgage payment is much lower.B) only a very low or zero down payment is required.C) the cost of private mortgage insurance is lower.D) the government holds the lien on the property.Answer: BTopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition18) (I) Conventional mortgages are originated by private lending institutions, and FHA or VA loans are originated by the government. (II) Conventional mortgages are insured by private companies, and FHA or VA loans are insured by the government.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: BTopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition19) Borrowers tend to prefer ________ to ________, whereas lenders prefer ________.A) fixed-rate loans; ARMs; fixed-rate loansB) ARMs; fixed-rate loans; fixed-rate loansC) fixed-rate loans; ARMs; ARMsD) ARMs; fixed-rate loans; ARMsAnswer: CTopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition20) (I) ARMs offer lower initial rates and the rate may fall during the life of the loan. (II) Conventional mortgages do not allow a borrower to take advantage of falling interest rates.A) (I) is true, (II) is false.B) (I) is false, (II) is true.C) Both are true.D) Both are false.Answer: ATopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition21) Growing-equity mortgages (GEMs)A) help the borrower pay off the loan in a shorter time.B) have such low payments in the first few years that the principal balance increases.C) offer borrowers payments that are initially lower than the payments on aconventional mortgage.D) do all of the above.E) do only A and B of the above.Answer: ATopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition22) A borrower with a 30-year loan can create a GEM byA) simply increasing the monthly payments beyond what is required and designating that the excess be applied entirely to the principal.B) converting his ARM into a conventional mortgage.C) converting his conventional mortgage into an ARM.D) converting his conventional mortgage into a GPM.Answer: ATopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition23) Which of the following are useful for home buyers who expect their income to rise in the future?A) GPMsB) RAMsC) GEMsD) Only A and B are useful.E) Only A and C are useful.Answer: ETopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition24) Which of the following are useful for home buyers who expect their income to fall in the future?A) GPMsB) RAMsC) GEMsD) Only A and B are useful.E) Only A and C are useful.Answer: BTopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition25) Retired people can live on the equity they have in their homes by using aA) GEM.B) GPM.C) SAM.D) RAM.Answer: DTopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition26) Second mortgages serve the following purposes:A) they give borrowers a way to use the equity they have in their homes as security for another loan.B) they allow borrowers to get a tax deduction on loans secured by their primary residence or vacation home.C) they allow borrowers to convert their conventional mortgages into GEMs.D) all of the above.E) only A and B of the above.Answer: ETopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition27) Which of the following is a disadvantage of a second mortgage compared to credit card debt?A) The loans are secured by the borrower's home.B) The borrower gives up the tax deduction on the primary mortgage.C) The borrower must pay points to get a second mortgage loan.D) The borrower will find it more difficult to qualify for a second mortgage loan.Answer: ATopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition28) The share of the mortgage market held by savings and loans isA) over 50 percent.B) approximately 40 percent.C) approximately 20 percent.D) less than 5 percent.Answer: DTopic: Chapter 14.4 Mortgage-Lending InstitutionsQuestion Status: Updated from Previous Edition29) The share of the mortgage market held by commercial banks is approximatelyA) 50 percent.B) 30 percent.C) 15 percent.D) 5 percent.Answer: BTopic: Chapter 14.4 Mortgage-Lending Institutions Question Status: Updated from Previous Edition30) A loan-servicing agent willA) package the loan for an investor.B) hold the loan in their investment portfolio.C) collect payments from the borrower.D) do both A and C of the above.E) do both B and C of the above.Answer: CTopic: Chapter 14.5 Loan ServicingQuestion Status: Previous Edition31) Distinct elements of a mortgage loan includeA) origination.B) investment.C) servicing.D) all of the above.E) only B and C of the above.Answer: DTopic: Chapter 14.6 Secondary Mortgage MarketQuestion Status: Previous Edition32) The Federal National Mortgage Association (Fannie Mae)A) was set up to buy mortgages from thrifts so that these institutions could make more loans.B) funds purchases of mortgages by selling bonds to the public.C) provides insurance for certain mortgage contracts.D) does all of the above.E) does only A and B of the above.Answer: ETopic: Chapter 14.6 Secondary Mortgage MarketQuestion Status: Previous Edition33) The Federal Housing Administration (FHA)A) was set up to buy mortgages from thrifts so that these institutions could make more loans.B) funds purchases of mortgages by selling bonds to the public.C) provides insurance for certain mortgage contracts.D) does all of the above.E) does only A and B of the above.Answer: CTopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition34) ________ issues participation certificates, and ________ provides federal insurance for participation certificates.A) Freddie Mac; Freddie MacB) Freddie Mac; Ginnie MaeC) Ginnie Mae; Freddie MacD) Ginnie Mae; Ginnie MaeE) Freddie Mac; no oneAnswer: ETopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition35) REMICs are most likeA) Freddie Mac pass-through securities.B) Ginnie Mae pass-through securities.C) participation certificates.D) collateralized mortgage obligations.Answer: DTopic: Chapter 14.8 What Is a Mortgage-Backed Security? Question Status: Previous Edition36) Ginnie MaeA) insures qualifying mortgages.B) insures pass-through certificates.C) insures collateralized mortgage obligations.D) does only A and B. of the above.E) does only B and C of the above.Answer: BTopic: Chapter 14.8 What Is a Mortgage-Backed Security? Question Status: Previous Edition37) Mortgage-backed securitiesA) have been growing in popularity in recent years as institutional investors look for attractive investment opportunities.B) are securities collateralized by a pool of mortgages.C) are securities collateralized by both insured and uninsured mortgages.D) are all of the above.E) are only A and B of the above.Answer: DTopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition38) The most common type of mortgage-backed security isA) the mortgage pass-through, a security that has the borrower's mortgage payments pass through the trustee before being disbursed to the investors.B) collateralized mortgage obligations, a security which reduces prepayment risk.C) the participation certificate, a security which passes the borrower's mortgage payments equally among all the owners of the certificates.D) the securitized mortgage, a security which increases the liquidity of otherwise illiquid mortgages.Answer: ATopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition39) The interest rate borrowers pay on their mortgages is determined byA) current long-term market rates.B) the term.C) the number of discount points.D) all of the above.Answer: DTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition40) A loan for borrowers who do not qualify for loans at the usual market rate of interest because of a poor credit rating or because the loan is larger than justified by their income isA) a subprime mortgage.B) a securitized mortgage.C) an insured mortgage.D) a graduated-payment mortgage.Answer: ATopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition41) The percentage of the total loan paid back immediately when a mortgage loan is obtained, which lowers the annual interest rate on the debt, is calledA) discount points.B) loan terms.C) collateral.D) down payment.Answer: ATopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition42) Which of the following terms are found in mortgage loan contracts to protect the lender from financial loss?A) CollateralB) Down paymentC) Private mortgage insuranceD) All of the aboveAnswer: DTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition43) What factors are used in determining a person's FICO score?A) Past payment historyB) Outstanding debtC) Length of credit historyD) All of the aboveAnswer: DTopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition44) Between 2000 and 2005, home prices increased an average of ________ per year.A) 2%B) 4%C) 8%D) 12%Answer: CTopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: New Question45) From 2000 to 2005, housing prices increased, on average, by over 40%. This run up in prices was caused byA) speculators.B) an increase in subprime loans, which increased demand for new and existing houses.C) both A and B.D) None of the above are correct.Answer: CTopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Updated from Previous Edition14.2 True/False1) In 2012, mortgage loans to farms represented the largest proportion of mortgage lending in the U.S.Answer: FALSETopic: Chapter 14.1 What Are Mortgages?Question Status: New Question2) Down payments are designed to reduce the likelihood of default on mortgage loans.Answer: TRUETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition3) Discount points (or simply points) are interest payments made at the beginning of a loan.Answer: TRUETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition4) A point on a mortgage loan refers to one monthly payment of principal and interest.Answer: FALSETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition5) Closing for a mortgage loan refers to the moment the loan is paid off.Answer: FALSETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition6) Private mortgage insurance is a policy that guarantees to make up any discrepancy between the value of the property and the loan amount, should a default occur.Answer: TRUETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition7) During the early years of a mortgage loan, the lender applies most of the payment to the principal on the loan.Answer: FALSETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition8) One important advantage to a borrower who qualifies for an FHA or VA loan is the very low interest rate on the mortgage.Answer: FALSETopic: Chapter 14.3 Types of Mortgages9) Adjustable-rate mortgages generally have lower initial interest rates than fixed-rate mortgages.Answer: TRUETopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition10) Mortgage interest rates loosely track interest rates on three-month Treasury bills.Answer: FALSETopic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition11) An advantage of a graduated-payment mortgage is that borrowers will qualify for a larger loan than if they requested a conventional mortgage.Answer: TRUETopic: Chapter 14.3 Types of Mortgages12) Nearly half the funds for mortgage lending comes from mortgage pools and trusts.Answer: FALSETopic: Chapter 14.4 Mortgage-Lending InstitutionsQuestion Status: Updated from Previous Edition13) Many institutions that make mortgage loans do not want to hold large portfolios of long-term securities, because it would subject them to unacceptably high interest-rate risk.Answer: TRUETopic: Chapter 14.4 Mortgage-Lending InstitutionsQuestion Status: Previous Edition14) A problem that initially hindered the marketability of mortgages in a secondary market was that they were not standardized.Answer: TRUETopic: Chapter 14.6 Secondary Mortgage MarketQuestion Status: Previous Edition15) Mortgage-backed securities have declined in popularity in recent years as institutional investors have sought higher returns in other markets.Answer: FALSETopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition16) Mortgage-backed securities are marketable securities collateralized by a pool of mortgages.Answer: TRUETopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition17) Fannie Mae and Freddie Mac together either own or insure the risk on nearly one-fourth of America's residential mortgages.Answer: FALSETopic: Chapter 14.4 Mortgage-Lending InstitutionsQuestion Status: Previous Edition18) A FICO score below 660 is considered good while a score above 720 is likely to cause problems in obtaining a loan.Answer: FALSETopic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition19) Subprime loans are those made to borrowers who do not qualify for loans at the usual market rate of interest because of a poor credit rating or because the loan is larger than justified by their income.Answer: TRUETopic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition14.3 Essay1) How has the modern mortgage market changed over recent years?Topic: Chapter 14.1 What Are Mortgages?Question Status: Previous Edition2) Explain the features of mortgage loans that are designed to reduce the likelihood of default.Topic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition3) What are points? What is their purpose?Topic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition4) How does an amortizing mortgage loan differ from a balloon mortgage loan?Topic: Chapter 14.2 Characteristics of the Residential MortgageQuestion Status: Previous Edition5) Evaluate the advantages and disadvantages, from both the lender's and borrower's perspectives, of fixed-rate and adjustable-rate mortgages.Topic: Chapter 14.3 Types of MortgagesQuestion Status: Previous Edition6) Why has the online lending market developed in recent years and what are the advantages and disadvantages of this development?Topic: Chapter 14.4 Mortgage-Lending InstitutionsQuestion Status: Previous Edition7) Why may Fannie Mae and Freddie Mac pose a threat to the health of the financial system?Topic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition8) What are mortgage-backed securities, why were they developed, whattypes of mortgage-backed securities are there, and how do they work?Topic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: Previous Edition9) What are the benefits and side effects of securitized mortgages?Topic: Chapter 14.7 Securitization of MortgagesQuestion Status: Previous Edition10) Discuss the pros and cons of a subprime market for residential mortgages in the U.S.Topic: Chapter 14.8 What Is a Mortgage-Backed Security?Question Status: New Question。
金融市场与金融机构课后习题2-13章完美版
第3章利率的含义及其在定价中的作用课后题（定量）1．计算5年期，到期收益率为6%的1000美元零息债券的现值。
2．一种彩票头奖每年偿付50万，共付20年，贴现率为6%，这份头奖的实际价值是多少？3．年息票利率为7%，面值1000美元，到期期限3年，到期收益率5%，计算当期价格。
4．票面价值为1000美元，息票利率为10%，当期售价1150美元，到期期限为8年，债券的到期收益率为多少？5．一种永续债券年支付1250美元，当前价格15625美元。
求年支付1250美元，20年期普通年金的当前价格。
6．一种永续债券年支付50美元，到期收益率为2.5%，求当前价格。
如果到期收益率翻倍，当前价格为多少。
7．10万美元的房产，财产税为每年2.66%，求财产税的现值。
（假设房产价值不变，财产税率不变，贴现率为9%）8．实际利率2%，下一年预期通货膨胀率6%，名义利率是多少？以名义利率存款1000美元，一年后能否购买1050美元的音响。
9．10年期息票债券，面值1000美元，息票利率7%，当前售价871.65美元，如果第二年以880.1美元出售，计算回报率。
10．5年期债券，息票利率8%，面值1000美元，当前以980.30美元购买，若在1年后售出，回报率为9%，求售出价。
11．期限3年，面值1000美元，息票利率6%的息票债券久期。
（到期收益率7%）12．第11题中，如果利率跌至6.75%，计算预期价格变动。
两种方法13．一种价值为1亿美元的资产组合久期为10年，4000万证券加入该组合后久期变为12.5年，求4000万证券的久期？14．银行有两种3年期贷款。
第一种价值为3000万美元，到期一次性还款3780万美元。
第二种价值为4000万美元，要求每年偿还360美元利息，本金到期后归还。
（1）银行贷款资产组合的久期。
（2）如果利率从8%提高为8.5%该资产组合的价值变化情况。
15．一种债券的现金流支付如下：年 1 2 3 4现金流160 170 180 230将其持有2.5年，然后售出。
最新金融市场与金融机构 (第七版 米什金) 课后练习答案
金融市场与金融机构第七版米什金课后练习答案第一章为什么研究金融市场和金融机构1、为什么金融市场对经济的健康运行很重要？答：因为金融市场将资金从无生产性用途一方转向有生产性用途一方来提高经济效率。
2、当利率上升时，公司和消费方的经济行为可能发生怎样的变化？答：当利率上升时，公司将减少投资消费，因为融资的成本现在比以前高。
而消费者将更愿意将资金放入融资机构以收取利息，而不愿意购买房屋和汽车。
3、利率变化如何影响金融机构的收益性？答：利率的变化将会影响金融机构获取资金的成本，也会影响资产的收益，如贷款；除此之外，利率的改变还会影响金融机构所持股票或债券的价格，会导致收益或损失。
4、当利率上升时，是否每个人的情况都变坏了？答：不会。
利率上升时，贷款购买房屋和汽车的消费者境况会变坏，因为利息提高而付出更多资金；但是对于存款人而言，他们的收益会因利息的提升而增加。
5、股票价格下跌对商业投资可能会有什么影响？答：股票下跌对企业来说将会使其获取的资金变少，会减少投资规模，如：延迟建造本应提供更多就业机会的新厂房，也会减少对新设备的购买。
6、股票价格上升对消费者的购买决策可能造成什么影响？答：股票价格上升对于股票持有者的消费者来说他的财富增加了，也会刺激他去扩大消费。
7、英镑价值下跌如何影响英国的消费者？答：英镑价值下跌意味着外国商品更昂贵，购买进口商品的成本更高，消费者将减少对外国商品的购买，而会增加对本国产品的消费。
8、英镑价值上升对美国的商业活动影响如何？答：英镑价值上升使英国商品相对美国商品而言更加昂贵，美国企业会发现其产品在国内和国外更畅销，其产品的购买需求增加。
9、汇率变化如何影响金融机构的赢利性？答：汇率的变化会改变金融机构所持资产的价格，如此改变其相关资产的收益和损失。
同时也会影响金融机构在进行外贸交易时的利润。
10、观察图1-3，你会选择哪些年份去亚利桑那州而不是伦敦旅游？答：在1970S的中晚期、80S的晚期、90S早期美元的汇率都比较低，出境旅游相对而言比较昂贵，但是国内游将是黄金时期，可以去看看大峡谷；在80S早期，美元的汇率升高，出境游比较划算，可以去看看伦敦塔。
(整理)米什金《金融市场与金融机构》课后习题答案
（第五版第六版通用）（1－11章）
（5）法律、行政法规和国务院规定的其他建设项目。
（4）跟踪评ห้องสมุดไป่ตู้的结论。
（二）环境影响经济损益分析的步骤
[答疑编号502334050102]
（4）建设项目环境保护措施及其技术、经济论证。
1.建设项目环境影响评价机构的资质管理
1.规划环境影响评价的技术依据
（1）内涵资产定价法
环境影响评价，是指对规划和建设项目实施后可能造成的环境影响进行分析、预测和评估，提出预防或者减轻不良环境影响的对策和措施，进行跟踪监测的方法和制度。
影响支付意愿的因素有：收入、替代品价格、年龄、教育、个人独特偏好以及对该环境物品的了解程度等。
金融市场与金融机构中文
金融市场与金融机构答案中文 【篇一：fabozzi_ 金融市场与金融机构基础课后答案】the u.s. federal reserveand the creation of moneycentral banks and their purposethe primary role of a central bank is to maintain the stabilityof the currency and money supply for a country or a group of countries. the role of central banks can be categorized as: (1)risk assessment, (2) risk reduction, (3) oversight of payment systems, (4) crisis management.one of the major ways a central bank accomplishes its goalsis through monetary policy. for this reason, central banks are sometimes called monetary authority. in implementingmonetary policy, central banks, acting as a reserve bank,require private banks to maintain and deposit the requiredreserves with the central bank. in times of financial crisis,central banks perform the role of lender of last resort for the banking system. countries throughout the world may havecentral banks. additionally, the european central bank is responsible for implementing monetary policy for the member countries of the european union.there is widespread agreement that central banks should be independent of the government so that decisions of the central bank will not be influenced for short-term political purposessuch as pursuing a monetary policy to expand the economybut at the expense of inflation.in implementing monetary and economic policies, the unitedstates is a member of an informal network of nations. thisgroup started in 1976 as the group of 6, or g6: us, france, germany, uk, italy, and japan. thereafter, canada joined to forthe g7. in 1998, russia joined to form the g8.the central bank of the united states: the federal reservesystemthe federal reserve system consists of 12 banking districts covering the entire country. created in 1913, the federalreserve is the government agency responsible for the management of the us monetary and banking systems. it is independent of the political branches of government. the fed ismanaged by a seven-member board of governors, who are appointed by the president and approved by congress.the fed ’s tools for monetary management have been made more difficult by financial innovations. the public ’s increasing acceptance of money market mutual funds has funneled a large amount of money into what are essentially interest- bearing checking accounts. securitization permits commercial banks to change what once were illiquid consumer loans of several varieties into securities. selling these securities gives the banks a source of funding that is outside the fed ’s influence.instrument of monetary policy: how the fed influences the supply of moneythe fed has three instruments at its disposal to affect the level of reserves.under our fractional reserve banking system have to maintain specified fractional amounts of reserves against their deposits. the fed can raise or lower these required reserve ratios, thereby permitting banks to decrease or increase their lending and investment portfolios. a bank ’s total reserves equal its required reserves plus any excess reserves.the fed ’s most powerful instrument is its authority to conduct open market operation. it buys and sells in open debt markets government securities for its own accounts. the fed prefers to use treasury bills because it can make its substantial transactions without seriously disrupting the prices or yieldsof bills.the federal open market committee, or fomc, is the unit that decides on the general issues of changing the rate of growth in the money supply, by open market sales or purchases of securities. the implementation of policy through open market operations is the responsibility of the trading desk of the federal reserve bank of new york.the fed often employs variants of simple open market purchases and sales, these are called the repurchase agreement (or repo) and the reverse repo. in a repo, the fed buys a particular amount of securities from a seller that agrees to repurchase the same number of securities for a higher price at some future time. in a reverse repo, the fed sells securitiesand makes a commitment to buy them back at a higher price later.a bank borrowing from the fed is said to use the discount window. the discount rate is the rate charged to banks borrowing directly from the fed. raising the rate is designed to discourage such borrowing, while lowering should have the opposite effect.different kinds of moneymoney is that item which serves as a numeraire. in a basic sense money can be defined as anything that serves as a unit of account and medium of exchange. we measure prices in dollars and exchange dollars for goods. hence coins, currency, and any items readily exchanged into dollars (checking deposits or now accounts) constitute our money supply.money and monetary aggregatesmonetary aggregates measure the amount of money available to the economy at any time. the monetary base is defined as currency in circulation (coins and federal reserve notes) and reserves in the banking system. the instruments that serve as a medium of exchange can be narrowly defined as m1, which is currency and demand deposits. m2 is m1 plus time and savings accounts, and money market mutual funds. finally, m3 is m2 plus short-term treasury liabilities. while all three aggregates are watched and monitored, m1 is the most common form of the money supply, with its trait as being the most liquid. the ratio of the money supply to the economy ’s income is known as the velocity of money.the money multipier: the expansion of the money supplythe money multiplier effect arises from the fact that a small change in reserves can produce a large change in themoneysupply. through our fractional reserve system, a small increasewill allow an individual bank, to lend out the greater part of these additional funds. these loans subsequently become deposits in other banks allowing them to expand proportionately. so, while one bank can expand its loans (or deposits) by an amount 1% of reserves required, all banksinthe system can do likewise. thus, in a simple format total change in deposits can be stated as change in reserves divided by the reserve requirement, which is also theformulafor perpetuity. for example, if the change in the level ofreserves is $100 and the reserve requirement is 20%, the change in total deposits will be $500 for a multiplier of 5. of course, major assumptions are that banks will fully loan out their excess reserves and that depositors will not withdraw any of these extra reserves.the impact of interest rates on the money supplyhigh rates of interest may make keeping excess reserves costly, since unused funds represent loans not made and interest not earned. high rates of interest will also affect the pub lic ’s demand for holding cash. if deposits pay competitive interest rates, customers will be more willing to hold suchbank liabilities and less cash. therefore, a higher rate of interest can actually spur growth of the money supply. more likely, however, it will deter borrowing and slow monetary growth.the money supply process in an open economyin the modern era, almost every country has an open economy. foreign commercial and central banks hold dollar accounts in the united states. their purchases and sales of these deposits can affect exchange rates of the dollar against their own currency. the fed has responsibility for maintaining stability in exchange rates. a purchase of foreign exchange with dollars depreciates the dollar ’s value, but it also adds dollars to the accounts of foreign banks in this country, thus adding to the u.s. monetary base. most central banks of large economies own or stand ready to own a large amount of each of the world ’s major currencies, which are considered international reserves. sales of foreign exchange transactions have monetary base implication and hence consequences for the domestic money supply, emphasis is given to coordinating monetarypolicies among developed nations.answers to questions for chapter 4(questions are in bold print followed by answers.)1. what is the role of a central bank?the role of a central bank has several functions: risk assessment, risk reduction, oversight of payment systems,and crisis management. it can do this through monetary policies, and through the implementation of regulations.2. why is it argued that a central bank should be independent of the government?central banks should be independent of the short-term political interests and political influences generally in setting economic policies.3. identify each participant and its role in the process by which the money supply changes and monetary policy is implemented.the fed determines monetary policy and seeks to implement it through changes in reserves. it is up to the nation ’s banking system to act on changes in reserves thereby affecting deposits, which constitute the greater part of the m1 definition of the money supply.4. describe the structure of the board of governors of the federal reserve system.the board of governors of the federal reserve system consists of 7 members who are appointed to staggered 14-year terms. the board reviews discount operations and sets legal reserve requirements. in addition, all 7 members of the board serve on the federal open market committee (fomc), which determines the direction and magnitude of open-market operations. such operations constitute the key instrument for implementing monetary policy.5.a. explain what is meant by the statement “the united states has a fractional reserve banking system. ”b. how are these items related: total reserves, required reserves, and excess reserves?a. a fractional reserve system requires that a fraction or percent of a bank ’s reserve be placed either in currency in vault or with the federal reserve system.b. total reserves are the amounts that banks hold in cash or at the fed. required reserves are amounts required by the fed to meet some specific or legal reserve ratio to deposits. excess reserves are bank reserves in currency and at the fed which are in excess of legal requirements. since these amounts are non-interest bearing, banks are often willing to lend these surplus funds to deficit banks at the fed funds rate.【篇二：米什金《金融市场与金融机构》课后习题及其答案】class=txt>345【篇三：金融市场习题及答案】>1．金融市场是一个包含很多子系统的大系统；子系统之间也其实不是简单的并列关系。
《金融市场与金融的机构》课后习题答案
《金融市场与金融机构》米什金第七版课后习题答案
（请集中复习1-6、10-13、15章）
第一章为什么研究金融市场与金融机构
第二章金融体系概览
第三章利率的含义及其在定价中的作用
第四章为什么利率会变化
第五章利率的风险结构和期限结构如何影响利率
第六章金融市场是否有效
第十章货币政策传导：工具、目标战略和战术
第七版中的12题在第五六版中没有，此处的12-19题即为第七版的13-20题
第十一章货币市场
第十二章债券市场
第十三章股票市场
第十四章抵押贷款市场
第十五章外汇市场。
金融市场的与金融的机构 (第七版 米什金) 课后练习答案
金融市场与金融机构第七版米什金课后练习答案第一章为什么研究金融市场和金融机构1、为什么金融市场对经济的健康运行很重要？答：因为金融市场将资金从无生产性用途一方转向有生产性用途一方来提高经济效率。
2、当利率上升时，公司和消费方的经济行为可能发生怎样的变化？答：当利率上升时，公司将减少投资消费，因为融资的成本现在比以前高。
而消费者将更愿意将资金放入融资机构以收取利息，而不愿意购买房屋和汽车。
3、利率变化如何影响金融机构的收益性？答：利率的变化将会影响金融机构获取资金的成本，也会影响资产的收益，如贷款；除此之外，利率的改变还会影响金融机构所持股票或债券的价格，会导致收益或损失。
4、当利率上升时，是否每个人的情况都变坏了？答：不会。
利率上升时，贷款购买房屋和汽车的消费者境况会变坏，因为利息提高而付出更多资金；但是对于存款人而言，他们的收益会因利息的提升而增加。
5、股票价格下跌对商业投资可能会有什么影响？答：股票下跌对企业来说将会使其获取的资金变少，会减少投资规模，如：延迟建造本应提供更多就业机会的新厂房，也会减少对新设备的购买。
6、股票价格上升对消费者的购买决策可能造成什么影响？答：股票价格上升对于股票持有者的消费者来说他的财富增加了，也会刺激他去扩大消费。
7、英镑价值下跌如何影响英国的消费者？答：英镑价值下跌意味着外国商品更昂贵，购买进口商品的成本更高，消费者将减少对外国商品的购买，而会增加对本国产品的消费。
8、英镑价值上升对美国的商业活动影响如何？答：英镑价值上升使英国商品相对美国商品而言更加昂贵，美国企业会发现其产品在国内和国外更畅销，其产品的购买需求增加。
9、汇率变化如何影响金融机构的赢利性？答：汇率的变化会改变金融机构所持资产的价格，如此改变其相关资产的收益和损失。
同时也会影响金融机构在进行外贸交易时的利润。
10、观察图1-3，你会选择哪些年份去亚利桑那州而不是伦敦旅游？答：在1970S的中晚期、80S的晚期、90S早期美元的汇率都比较低，出境旅游相对而言比较昂贵，但是国内游将是黄金时期，可以去看看大峡谷；在80S早期，美元的汇率升高，出境游比较划算，可以去看看伦敦塔。
金融市场学双语题库及答案(第十三章)米什金《金融市场与机构》
Financial Markets and Institutions, 8e (Mishkin)Chapter 13 The Stock Market13.1 Multiple Choice1) (I) A share of common stock in a firm represents an ownership interest in that firm. (II) A share of preferred stock is as much like a bond as it is like common stock.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: CTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition2) Preferred stockholders hold a claim on assets that has priority over the claims ofA) both common stockholders and bondholders.B) neither common stockholders nor bondholders.C) common stockholders, but after that of bondholders.D) bondholders, but after that of common stockholders.Answer: CTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition3) (I) Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders, but after that of bondholders.(II) Firms issue preferred stock in far greater amounts than common stock.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: ATopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition4) (I) Preferred stockholders hold a claim on assets that has priority over the claims of common stockholders. (II) Bondholders hold a claim on assets that has priority over the claims of preferred stockholders.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: CTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition5) (I) Firms issue common stock in far greater amounts than preferred stock.(II) In a given year, the total volume of stock issued is much less than the volume of bonds issued.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: CTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition6) The riskiest capital market security isA) preferred stock.B) common stock.C) corporate bonds.D) Treasury bonds.Answer: BTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition7) (I) The largest of the organized stock exchanges in the United States is the New York Stock Exchange.(II) To be listed on the NYSE, a firm must have a minimum of $100 million in market value or $10 million in revenues.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: ATopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition8) To list on the NYSE, a firm mustA) have earnings of at least $10 million per year.B) have at least $500 million in outstanding debt.C) have a total of $100 million in market value.D) meet all of the above requirements.E) meet A and C of the above requirements.Answer: ETopic: Chapter 13.1 Investing in StocksQuestion Status: Updated from Previous Edition9) Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers "make a market" byA) buying stocks for inventory when investors want to sell.B) selling stocks from inventory when investors want to buy.C) doing both of the above.D) doing neither of the above.Answer: CTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition10) The most active stock exchange in the world is theA) Nikkei Stock Exchange.B) London Stock Exchange.C) Shanghai Stock Exchange.D) New York Stock Exchange.Answer: ATopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition11) Which of the following statements about trading operations in an organized exchange is correct?A) Floor traders all deal in a wide variety of stocks.B) In most trades, specialists match buy and sell orders.C) In most trades, specialists buy for or sell from their own inventories.D) The SuperDOT system is used to expedite large trades of over 100,000 shares. Answer: BTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition12) Which of the following is not an advantage of Electronic Communications Networks (ECNs)?A) All unfilled orders are available for review by ECN traders.B) Transactions costs are lower for ECN trades.C) Trades are made and confirmed faster.D) ECNs work well for thinly traded stocks.Answer: DTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition13) Which of the following statements is false regarding Electronic Communications Networks (ECNs)?A) Archipelago and Instinet are two examples of ECNs.B) Competition from ECNs has forced NASDAQ to cut its fees.C) Traders benefit from lower trading costs and faster service.D) ECNs allow institutional investors, but not individuals, to trade after hours. Answer: DTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition14) A basic principle of finance is that the value of any investment isA) the present value of all future net cash flows generated by the investment.B) the undiscounted sum of all future net cash flows generated by the investment.C) unrelated to the future net cash flows generated by the investment.D) unrelated to the degree of risk associated with the future net cash flows generated by the investment.Answer: ATopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition15) A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if she expects it to be selling for $30 in one year and requires a 15 percent return on equity investments?A) $30.24B) $26.30C) $26.09D) $27.74Answer: BTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition16) A stock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires a 12 percent return on equity investments?A) $38B) $33.50C) $34.50D) $33.93Answer: DTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition17) In the one-period valuation model, a stock's value will be higherA) the higher its expected future price is.B) the lower its dividend is.C) the higher the required return on investments in equity is.D) all of the above.Answer: ATopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition18) In the one-period valuation model, a stock's value falls if the ________ rises.A) dividendB) expected future priceC) required return on equityD) current priceAnswer: CTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition19) In the generalized dividend valuation model, a stock's value depends only onA) its future dividend payments and its future price.B) its future dividend payments and the required return on equity.C) its future price and the required return on investments on equity.D) its future dividend payments.Answer: BTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition20) Which of the following is not an element of the Gordon growth model of stock valuation?A) The stock's most recent dividend paidB) The expected constant growth rate of dividendsC) The required return on investments in equityD) The stock's expected future priceAnswer: DTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition21) According to the Gordon growth model, what is an investor's valuation of a stock whose current dividend is $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 11 percent?A) $110B) $100C) $11D) $10E) $5.24Answer: ATopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition22) According to the Gordon growth model, what is an investor's valuation of a stock whose current dividend is $1.00 per year if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 15 percent?A) $20B) $11C) $22D) $7.33E) $4.40Answer: CTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition23) Holding other things constant, a stock's value will be highest if its dividend growth rate isA) 15%.B) 10%.C) 5%.D) 2%.Answer: ATopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition24) Holding other things constant, a stock's value will be highest if its most recent dividend isA) $2.00.B) $5.00.C) $0.50.D) $1.00.Answer: BTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition25) Holding other things constant, a stock's value will be highest if the investor's required return on investments in equity isA) 20%.B) 15%.C) 10%.D) 5%.Answer: DTopic: Chapter 13.2 Computing the Price of Common Stock Question Status: Previous Edition26) Suppose the average industry PE ratio for auto parts retailers is 20. What is the current price of Auto Zone stock if the retailer's earnings per share is projected to be $1.85?A) $21.85B) $37C) $10.81D) $9.25Answer: BTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition27) Which of the following is true regarding the Gordon growth model?A) Dividends are assumed to grow at a constant rate forever.B) The dividend growth rate is assumed to be greater than the required return on equity.C) Both A and B of the above.D) Neither A nor B of the above.Answer: ATopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition28) The PE ratio approach to valuing stock is especially useful for valuingA) privately held firms.B) firms that don't pay dividends.C) both A and B of the above.D) neither A nor B of the above.Answer: CTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition29) The PE ratio approach to valuing stock is especially useful for valuingA) publicly held corporations.B) firms that regularly pay dividends.C) both A and B of the above.D) neither A nor B of the above.Answer: DTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition30) A weakness of the PE approach to valuing stock is that it isA) difficult to estimate the constant growth rate of a firm's dividends.B) difficult to estimate the required return on equity.C) difficult to predict how much a firm will pay in dividends.D) based on industry averages rather than firm-specific factors.Answer: DTopic: Chapter 13.2 Computing the Price of Common Stock Question Status: Previous Edition31) (I) The market price of a security at a given time is the highest value any investor puts on the security. (II) Superior information about a security increases its value by reducing its risk.A) (I) is true, (II) is false.B) (I) is false, (II) is true.C) Both are true.D) Both are false.Answer: BTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition32) The main cause of fluctuations in stock prices is changes inA) tax laws.B) errors in technical stock analysis.C) daily trading volume in stock markets.D) information available to investors.E) total household wealth in the economy.Answer: DTopic: Chapter 13.3 How the Market Sets Security PricesQuestion Status: Previous Edition33) Stock values computed by valuation models may differ from actual market prices because it is difficult toA) estimate future dividend growth rates.B) estimate the risk of a stock.C) forecast a stock's future dividends.D) all of the above are true.Answer: DTopic: Chapter 13.4 Errors in ValuationQuestion Status: Previous Edition34) The 2001 terrorist attacks and the Enron financial scandal caused anticipated dividend growth to ________, investors' required return on equity to ________, and stock prices to ________.A) decrease; increase; decreaseB) decrease; increase; increaseC) increase; decrease; decreaseD) increase; decrease; increaseAnswer: ATopic: Chapter 13.4 Errors in ValuationQuestion Status: Previous Edition35) Which of the following is not an objective of the Securities and Exchange Commission?A) Maintain integrity of the securities marketsB) Advise investors about which particular stocks are good buysC) Require firms to provide specific information to investorsD) Regulate major participants in securities marketsAnswer: BTopic: Chapter 13.6 Regulation of the Stock MarketQuestion Status: Previous Edition36) A share of common stock in a firm represents an ownership interest in that firm and allows stockholders toA) vote.B) receive dividends.C) receive interest payments.D) only A and B of the above.Answer: DTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition37) In 2013, the NYSE traded ________ shares on an average trading day.A) 4 billionB) 7 billionC) 10 billionD) 12 billionAnswer: ATopic: Chapter 13.1 Investing in StocksQuestion Status: Updated from Previous Edition38) Exchange traded funds (ETFs) have which of the following features?A) They are listed and traded as individual stocks on a stock exchange.B) They are indexed rather than actively managed.C) Their value is based on the underlying net asset value of the stocks held in the index basket.D) All of the above.Answer: DTopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition39) What is the primary disadvantage of an ETF?A) ETFs tend to have lower management fees than comparable index mutual bonds.B) ETFs usually have no minimum investment amount.C) Investors have to pay a broker commission each time they buy or sell shares.D) None of the above are disadvantages of an ETF.Answer: CTopic: Chapter 13.1 Investing in Stocks Question Status: Previous Edition40) A high price earnings ratio (PE) gives what interpretation?A) The market expects earnings to fall in the future.B) The market feels the firm's earnings are very high risk and are willing to pay a premium for them.C) The market expects the earnings to rise in the future.D) The firm is not paying a dividend.Answer: CTopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition41) A ________ PE may indicate that the market feels the firm's earnings are very ________ risk and is therefore willing to pay a ________ for them.A) high; low; premiumB) high; high; discountC) low; low; discountD) high; high; premiumAnswer: ATopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition42) The subprime financial crisis led to one of the worst bear markets in the last 50 years. Stock prices likely fell due toA) an increase in required returns on equity investments.B) a decline in growth prospects for U.S. companies.C) Both A and B are likely reasons.D) None of the above are correct.Answer: ATopic: Chapter 13.4 Errors in ValuationQuestion Status: New Question43) The Securities Acts of 1933 and 1934 established the S.E.C. to enforce which of the follow laws?A) Require firms to tell the public the truth about their businesses.B) Require brokers, dealers, and exchanges to treat investors fairly.C) To ensure that no investment ever loses money.D) All of the above are laws the S.E.C. enforces.E) A and B above are laws the S.E.C. enforces.Answer: ETopic: Chapter 13.6 Regulation of the Stock MarketQuestion Status: New Question44) Which of the following is not a division of the S.E.C.?A) The Division of Fraud InvestigationB) The Division of Corporate FinanceC) The Division of Market RegulationD) The Division of Investment ManagementE) The Division of EnforcementAnswer: ATopic: Chapter 13.6 Regulation of the Stock MarketQuestion Status: New Question13.2 True/False1) More stock trading in the U.S. occurs in over-the-counter markets rather than on organized exchanges.Answer: FALSETopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition2) In over-the-counter markets, dealers increase the liquidity of thinly traded securities.Answer: TRUETopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition3) Electronic Communications Networks apply technology to make organized exchanges more efficient and speedy.Answer: FALSETopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition4) All stocks pay dividends, as that is the only way an investor can profit from holding stock.Answer: FALSETopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition5) Common stock is the riskiest corporate security, followed by preferred stock and then bonds.Answer: TRUETopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition6) The Enron financial scandal increased uncertainty about the quality of accounting information and as a result, increased required return on investment in stocks. Answer: TRUETopic: Chapter 13.4 Errors in Valuation Question Status: Previous Edition7) The Dow Jones Industrial Average is the broadest and best indicator of the stock market's day-to-day performance.Answer: FALSETopic: Chapter 13.4 Stock Market IndexesQuestion Status: Previous Edition8) The Securities and Exchange Commission requires firms to submit various documents to increase the flow of information to investors but does not verify the accuracy of that information.Answer: TRUETopic: Chapter 13.6 Regulation of the Stock MarketQuestion Status: Previous Edition9) About half of new equity issues are preferred stock.Answer: FALSETopic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition10) A stock's market value will be higher the higher its expected dividend stream is, all else being equal.Answer: TRUETopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition11) The Gordon growth model assumes that a stock's dividend grows at a constant rate forever.Answer: TRUETopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition12) A stock's market value will be higher the higher the investor's required rate of return is, all else being equal.Answer: FALSETopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition13) A lower than average PE may mean that the market expects earnings to rise in the future.Answer: FALSETopic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition14) About 75% of orders to buy or sell on the NYSE are executed using SuperDOT. Answer: TRUETopic: Chapter 13.1 Investing in StocksQuestion Status: Updated from Previous Edition13.3 Essay1) How do corporate stocks differ from bonds?Topic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition2) How do common stocks differ from preferred stocks?Topic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition3) How do over-the-counter markets differ from organized exchanges?Topic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition4) What is the role of specialists on a stock exchange?Topic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition5) What are the advantages and disadvantages of Electronic Communications Networks (ECNs) for trading stocks?Topic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition6) What is the role of the required return on equity investments in stock valuation models?Topic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition7) Using the Gordon growth model, explain why the 2001 terrorist attacks and the Enron financial scandal caused stock prices to decline.Topic: Chapter 13.2 Computing the Price of Common StockQuestion Status: Previous Edition8) What are American Depository Receipts (ADRs)?Topic: Chapter 13.5 Buying Foreign StocksQuestion Status: Previous Edition9) What are the objectives of the Securities and Exchange Commission?Topic: Chapter 13.6 Regulation of the Stock MarketQuestion Status: Previous Edition10) What are the advantages and disadvantages of exchange traded funds (ETFs) fro trading stocks?Topic: Chapter 13.1 Investing in StocksQuestion Status: Previous Edition11) Why would a crisis in the subprime mortgage market lead to declining prices in the U.S. equity markets?Topic: Chapter 13.4 Errors in ValuationQuestion Status: New Question。