米什金 货币金融学 英文版习题答案chapter 20英文习题

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

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

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

Chapter 31. Money is____A____.A) anything that is generally accepted in payment for goods and services or in the repayment of debtB) a flow of earnings per unit of timeC) the total collection of pieces of property that are a store of valueD) always based on a precious metal like gold or silver2. A person's house is part of her ___D_____.A) money B) income C) liabilities D) wealth3. The difference between money and income is that____B____.A) money is a flow and income is a stock B) money is a stock and income is a flowC) there is no difference, money and income are both stocksD) there is no difference, money and income are both flows4. Of money's three functions, the one that distinguishes money from other assets is its function as aC DA) store of value B) unit of accountC) standard of deferred payment D) medium of exchange5. Compared to an economy that uses a medium of exchange, in a barter economy（以货易货经济）___A___A) transaction costs are higher. B) transaction costs are lower.C) liquidity costs are higher. D) liquidity costs are lower.6. For a commodity to function effectively as money it must be___A___.A) easily standardized, making it easy to ascertain its valueB) difficult to make change C) hard to carry aroundD) deteriorate quickly so that its supply does not become too large7. Ann purchasing concert tickets with her debit card（借记卡）is an example of the __A___ function of money.与借记卡对应的是信用卡A) medium of exchange B) unit of account C) store of value D) specialization8.Dennis notices that jackets are on sale for $99. In this case money is functioning as a __B_____.A) medium of exchange B) unit of account C) store of value D) payments-system ruler9.As a store of value, money ____D___.A) does not earn interest B) cannot be a durable asset C) must be currencyD) is a way of saving for future purchases10. ___C__B_ is the relative ease and speed that an asset can be converted into a medium of exchange.资产转化为货币的速度和容易程度称之为什么A) Efficiency B) Liquidity C) Deflation D) Specialization11. Of the following assets, the least liquid is___D____.A) stocks B) traveler's checks C) checking deposits D) a house12. A fall in the level of prices___C____.物价与货币价值呈反比关系A) does not affect the value of money B) has an uncertain effect on the value of moneyC) increases the value of money D) reduces the value of money13. Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ____B____ money. （fiat money法定货币、名义货币）A) commodity B) fiat C) electronic D) funnypared to checks, paper currency and coins have the major drawbacks that they___A____.A) are easily stolen B) are hard to counterfeit C) are not the most liquid assetsD) must be backed by gold15. Which of the following is not a form of e-money? A BA) a debit card B) a credit card 不是货币，借银行的，属于负债方C) a stored-value card D) a smart card ——储值卡16. An electronic payments system has not completely replaced the paper payments system because of all of the following reasons except___A____.DA) expensive equipment is necessary to set up the systemB) security concerns C) privacy concerns D) transportation costs.17. ____B____ is the narrowest monetary aggregate that the Fed reports.美联储A) M0 B) M1 C) M2 D) M318. Which of the following is not included in the M1 but is included in the M2? DA) Currency B) Traveler's checks C) Demand depositsD) Small-denomination time deposits19. Of the following, the largest is___D____.A) money market deposit accounts B) demand deposits C) M1 D) M220. If an individual moves money from currency to a demand deposit account, CA) M1 decreases and M2 stays the same B) M1 stays the same and M2 increasesC) M1 stays the same and M2 stays the same D) M1 increases and M2 stays the sameChapter 41.The present value of an expected future payment ___B_____ as the interest rate increases.当利率增加时，现值的未来付款会AA) falls B) rises C) is constant D) is unaffected2. With an interest rate of 6 percent, the present value of $100 next year is approximately__A___. 利率为6%时，现值为100元，明年时大约有C PV=CF/利率=100/1+0.06 现值一般小于未来值A) $106 B) $100 C) $94 D) $923. A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a___B__.信用市场工具要求借贷者每段时间支付相同的钱直到到期是A) simple loan B) fixed-payment loan C) coupon bond D) discount bond4. A ___C_____ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid.向持有者支付每年固定付款贷款，直到到期，当价值被支付A) coupon bond; discount B) discount bond; discountC) coupon bond; face D) discount bond; face5. When talking about a coupon bond, face value and ___B_____ mean the same thing.当谈到零息债券，面值和是相同的意义A 面值：face value/par valueA) par value B) coupon value C) amortized value D) discount value.6. All of the following are examples of coupon bonds (付息债权）except__D___.以下例子中除了，都是付息债券的例子 BA) Corporate bonds 长期B) U.S. Treasury bills 短期债C) U.S. Treasury notes 中期（两年以上）D) U.S. Treasury bonds长期（十年以上）7. If the amount payable in two years is $2420 for a simple loan at 10 percent interest, the loan amount is___C__.如果一个简单贷款两年的应付款为以10%的利率支付2420，则贷款金额为A) $1000 B) $1210 C) $2000 D) $22008.The yield to maturity is __A____ than the ______ rate when the bond price is _____ its face value. B到期收益率比的利率时，此时，市场价值它的面值面值由公司决定为1000，市场发售时为900，低于面值，而价格与到期收益率呈反比A) greater; coupon; above B) greater; coupon; belowC) greater; perpetuity; above D) less; perpetuity（永续债，不受市场影响，）; below9.Which of the following $5,000 face-value securities has the highest yield to maturity? B以下5000元面值的证券到期收益率最高的是 DA) A 6 percent coupon bond selling for $5,000B) A 6 percent coupon bond selling for $5,500C) A 10 percent coupon bond selling for $5,000D) A 12 percent coupon bond selling for $4,50010. The interest rate on a consol equals the __D___.债务的利率与相同A) price times the coupon payment B) price divided by the coupon paymentC) coupon payment plus the price D) coupon payment divided by the price11. The sum of the current yield and the rate of capital gain（资本利得=收益/本金）is called the _A____.当前的总收益和资本收益率被称为A) rate of return B) discount yield C) perpetuity yield D) par value.12. The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is __A___. C 资本利得=-5% 利息=5% 回报率=两者相加=05%的零息债券最初售价为1000元，下一年售价为950的回报率为A) -10 percent B) -5 percent C) 0 percent D) 5 percent13. Interest-rate risk is the riskiness of an asset's returns due to__B___.利率风险是资产由于的风险 AA) interest-rate changes (利率改变）B) changes in the coupon rate（）C) default of the borrower( credit risk信用风险) D) changes in the asset's maturity14. An equal decrease in all bond interest rates___A__.所有债权利率下降同样多会BA) increases the price of a five-year bond more than the price of a ten-year bondB) increases the price of a ten-year bond more than the price of a five-year bondC) decreases the price of a five-year bond more than the price of a ten-year bondD) decreases the price of a ten-year bond more than the price of a five-year bond15. The ____B____ interest rate more accurately reflects the true cost of borrowing.的利率会更准确的反映到对借贷的实际支付A) nominal B) real C) discount D) market16. When the ____C____ interest rate is low, there are greater incentives to ________ and fewer incentives to ________.当的利率降低，的让利会增大，的让利会降低A) nominal; lend; borrow B) real; lend; borrowC) real; borrow; lend D) market; lend; borrow17.The ___A_____ states that the nominal interest rate equals the real interest rate plus the expected rate of inflation.表明名义利率等于实际利率加上通货膨胀的预期利率A) Fisher equation B) Keynesian equation C) Monetarist equation D) Marshall equation18. If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is ___C_____.如果你希望明年的通货膨胀率为4%，一年期债券的到期收益率达到7%，则这种债券的实际利率为A) -3 percent B) -2 percent C) 3 percent D) 7 percent19. The yield to maturity for a discount bond is ____A____ related to the current bond price.贴现债券的到期收益率与债券的现值的关系为A) negatively B) positively C) not D) directly20. The yield to maturity for a one-year discount bond equals the increase in price over the year, divided by the___A_____.一年期的贴现债券的到期收益率等于一年来价格的上涨除以A)initial price B) face value C) interest rate D) coupon rateChapter 101.Which of the following statements are true? D以下哪个描述是对的CA) A bank's assets are its sources of funds. B) A bank's liabilities are its uses of funds.C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital.D) A bank's balance sheet indicates whether or not the bank is profitable.2. Which of the following are reported as liabilities on a bank's balance sheet? B下列哪个选项是作为银行资产负债表的负债A) Reserves B) Checkable deposits C) Loans D) Deposits with other banks3. Because checking accounts are ___D_____ liquid for the depositor than passbook savings, they earn ________ interest rates.因为活期存款对于存款人具有比存折储蓄的流动性，因而他们可以获得利息A) less; higher B) less; lower C) more; higher D) more; lower4. Bank loans from the Federal Reserve are called ____C____ and represent a ________ of funds. 来自美联储的银行贷款被称为B且代表了一种基金A) discount loans; use B) discount loans; source C) fed funds; use D) fed funds; source5. Bank capital is equal to ___A_____ minus ________.银行资本相当于减去。