Market Timing Ability of Indian Mutual Fund Managers Under Conditional Models

博迪的投资学第⼆章练习题（英）21.Which of the following is not a money market instrument?A. Treasury billB. Commercial paperC. Preferred stockD. Banker's acceptance2.Thirteen week T-bill auctions are conducted ____.A. dailyB. weeklyC. monthlyD. quarterly3.When computing the bank discount yield you would use ____ days in the year.A. 260B. 360C. 365D. 3664. A dollar denominated deposit at a London bank is called _____.A. eurodollarsB. LIBORC. fed fundsD. banker's acceptance5.Money market securities are sometimes referred to as "cash equivalent" because _____.A. they are safe and marketableB. they are not liquidC. they are high riskD. they are low denomination6.The most actively traded money market security isA. Treasury billsB. Bankers' AcceptancesC. Certificates of DepositD. Common stock7.______ voting of common stock gives minority shareholders the most representation on the board of directors.A. MajorityB. CumulativeC. RightsD. Proxy8.An investor in a T-bill earns interest by _________.A. receiving interest payments every 90 daysB. receiving dividend payments every 30 daysC. converting the T-bill at maturity into a higher valued T-noteD. buying the bill at a discount from the face value received at maturity9.______ would not be included in the EAFE index.A. AustraliaB. CanadaC. FranceD. Japan10._____ is considered to be an emerging market country.A. FranceB. NorwayC. BrazilD. Canada11.Which one of the following is a true statement?A. Dividends on preferred stocks are tax-deductible to individual investors but not to corporate investorsB. Common dividends cannot be paid if preferred dividends are in arrears on cumulative preferred stockC. Preferred stockholders have voting powerD. Investors can sue managers for nonpayment of preferred dividends12.The bid price of a treasury bill is _________.A. the price at which the dealer in treasury bills is willing to sell the billB. the price at which the dealer in treasury bills is willing to buy the billC. greater than the ask price of the treasury bill expressed in dollar termsD. the price at which the investor can buy the treasury bill13.The German stock market is measured by which market index?A. FTSEB. Dow Jones 30C. DAXD. Nikkei14.Deposits of commercial banks at the Federal Reserve are called _____.A. bankers acceptancesB. federal fundsC. repurchase agreementsD. time deposits15.Which of the following is not a true statement regarding municipal bonds?A. A municipal bond is a debt obligation issued by state or local governments.B. A municipal bond is a debt obligation issued by the Federal Government.C. The interest income from a municipal bond is exempt from federal income taxation.D. The interest income from a municipal bond is exempt from state and local taxation in the issuing state.16.Which of the following is not a characteristic of a money market instrument?A. LiquidityB. MarketabilityC. Low riskD. Maturity greater than one year17.An individual who goes short in a futures positionA. commits to delivering the underlying commodity at contract maturityB. commits to purchasing the underlying commodity at contract maturityC. has the right to deliver the underlying commodity at contract maturityD. has the right to purchase the underlying commodity at contract maturity18.Which of the following is not a nickname for an agency associated with the mortgage markets?A. Fannie MaeB. Freddie MacC. Sallie MaeD. Ginnie Mae/doc/50f32b22dd36a32d73758155.html mercial paper is a short-term security issued by __________ to raise funds.A. the Federal ReserveB. commercial banksC. large well-known companiesD. the New York Stock Exchange20.The maximum maturity on commercial paper isA. 270 daysB. 180 daysC. 90 daysD. 30 days21.Which one of the following is a true statement regarding the Dow Jones Industrial Average?A. It is a value-weighted average of 30 large industrial stocksB. It is a price-weighted average of 30 large industrial stocksC. It is a price-weighted average of 100 large stocks traded on the New York Stock ExchangeD. It is a value-weighted average of all stocks traded on the New York Stock Exchange22.Treasury bills are financial instruments issued by __________ to raise funds.A. commercial banksB. the Federal GovernmentC. large corporationsD. state and city governments23.Which of the following are true statements about T-bills?I. T-bills typically sell in denominations of $10,000II. Income earned on T-bills is exempt from all Federal taxesIII. Income earned on T-bills is exempt from state and local taxesA. I onlyB. I and II onlyC. I and III onlyD. I, II and III24. A bond that has no collateral is called _________.A. a callable bondB. a debentureC. a junk bondD. a mortgage25. A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.A. call optionB. futures contractC. put optionD. interest rate swap26. A T-bill quote sheet has 90 day T-bill quotes with a 4.92 bid and a 4.86 ask. If the bill has a $10,000 face value an investor could buy this bill forA. $10,000.00B. $9,878.50C. $9,877.00D. $9,880.1627.Which one of the following is a true statement regarding corporate bonds?A. A corporate callable bond gives its holder the right to exchange it for a specified number of thecompany's common sharesB. A corporate debenture is a secured bondC. A corporate convertible bond gives its holder the right to exchange it for a specified number of the company's common sharesD. Holders of corporate bonds have voting rights in the company28.The yield on tax-exempt bonds is ______.A. usually less than 50% of the yield on taxable bondsB. normally about 90% of the yield on taxable bondsC. greater than the yield on taxable bondsD. less than the yield on taxable bonds29.__________ is not a money market instrument.A. A certificate of depositB. A treasury billC. A treasury bondD. Commercial paper30.An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The investor's actual annual rate of return on this investment was _____.A. 4.80%B. 4.97%C. 5.47%D. 5.74%31.The U.K. stock index is the _________.A. DAXB. FTSEC. GSED. TSE32. A __________ gives its holder the right to buy an asset for a specified exercise price on or before a specified expiration date.A. call optionB. futures contractC. put optionD. interest rate swap33.Which one of the following provides the best example of securitization?A. convertible bondB. call optionC. mortgage pass-through securityD. preferred stock34.Which of the following indices are market-value weighted?I. The NYSE CompositeII. The S&P 500III. The Wilshire 5000A. I and II onlyB. II and III onlyC. I and III onlyD. I, II and III35.The interest rate charged by large banks in London to lend money among themselves is called _________.A. the prime rateB. the discount rateC. the federal funds rateD. LIBOR36. A firm that has large securities holdings that wishes to raise money for a short length of time may be able tofind the cheapest financing from which of the following?A. Reverse repurchase agreementB. Banker's acceptanceC. Commercial paperD. Repurchase agreement37.Currently the Dow Jones Industrial Average is computed by _________.A. adding the prices of 30 large "blue-chip" stocks and dividing by 30B. calculating the total market value of the 30 firms in the index and dividing by 30C. measuring the current total market value of the 30 stocks in the index relative to the total value on theprevious dayD. a dding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits andlarge stock dividends38.An investor purchases one municipal and one corporate bond that pay rates of return of 5.00% and 6.40% respectively. If the investor is in the 15% tax bracket, his after tax rates of return on the municipal and corporate bonds would be respectivelyA. 5.00% and 6.40%B. 5.00% and 5.44%C. 4.25% and 6.40%D. 5.75% and 5.44%39.If a treasury note has a bid price of $996.25, the quoted bid price in the Wall Street Journal would be_________.A. 99:25B. 99:63C. 99:20D. 99:0840.TIPS are ______.A. Treasury bonds that pay a variable rate of interestB. U.K. bonds that protect investors from default riskC. securities that trade on the Toronto stock indexD. Treasury bonds that protect investors from inflation41.The price quotations of treasury bonds in the Wall Street Journal show a bid price of 102:12 and an ask price of 102:14. If you sold the bond you expect to receive _________.A. $1,024.75B. $1,024.38C. $1,023.75D. $1,022.5042.The Dow Jones Industrial Average is _________.A. a price weighted averageB. a value weight and averageC. an equally weighted averageD. an unweighted average43.Investors will earn higher rates of returns on TIPS than equivalent default risk standard bonds if_______________.A. inflation is lower than anticipated over the investment periodB. inflation is higher than anticipated over the investment periodC. the U.S. dollar increases in value against the euroD. the spread between commercial paper and Treasury securities remains low44.Preferred stock is like long-term debt in that ___________.A. it gives the holder voting power regarding the firm's managementB. it promises to pay to its holder a fixed stream of income each yearC. the preferred dividend is a tax-deductible expense for the firmD. in the event of bankruptcy preferred stock has equal status with debt45.Which of the following does not approximate the performance of a buy and hold portfolio strategy?A. An equally weighted indexB. A price weighted indexC. A value weighted indexD. Weights are not a factor in this situation46.In calculating the Dow Jones Industrial Average, the adjustment for a stock split occurs _________.A. automaticallyB. by adjusting the divisorC. by adjusting the numeratorD. by adjusting the market value weights47.If the market prices of the 30 stocks in the Dow Jones Industrial Average all change by the same dollaramount on a given day, assuming there are no stock splits which stock will have the greatest impact on the average?A. The one with the highest priceB. The one with the lowest priceC. All 30 stocks will have the same impactD. The answer cannot be determined by the information given48. A bond issued by the State of Alabama is priced to yield 6.25%. If you are in the 28% tax bracket this bondwould provide you with an equivalent taxable yield of _________.A. 4.50%B. 7.25%C. 8.68%D. none of the above49.The purchase of a futures contract gives the buyer _________.A. the right to buy an item at a specified priceB. the right to sell an item at a specified priceC. the obligation to buy an item at a specified priceD. the obligation to sell an item at a specified price50.Ownership of a put option entitles the owner to the __________ to ___________ a specific stock, on orbefore a specific date, at a specific price.A. right, buyB. right, sellC. obligation, buyD. obligation, sell51.An investor in a 28% tax bracket is trying to decide whether to invest in a municipal bond or a corporatebond. She looks up municipal bond yields (r m) but wishes to calculate the taxable equivalent yield r. The formula she should use is given by ______.A. r = r m * (1 - 28%)B. r = r m/(1 - 72%)C. r = r m * (1 - 72%)D. r = r m/(1 - 28%)52.June call and put options on King Books Inc are available with exercise prices of $30, $35 and $40. Amongthe different exercise prices, the call option with the _____ exercise price and the put option with the _____ exercise price will have the greatest value.A. $40; $30B. $30; $40C. $35; $35D. $40; $4053.Ownership of a call option entitles the owner to the __________ to __________ a specific stock, on orbefore a specific date, at a specific price.A. right, buyB. right, sellC. obligation, buyD. obligation, sell54.The ________ the ratio of municipal bond yields to corporate bond yields the _________ the cutoff taxbracket where more individuals will prefer to hold municipal debt.A. higher; lowerB. lower; lowerC. lower; higherD. higher; higher55.Which of the following types of bonds are excluded from most bond indices?A. Corporate bondsB. Junk bondsC. Municipal bondsD. None of the above56.The Hang Seng index reflects market performance on which of the following major stock markets?A. JapanB. SingaporeC. TaiwanD. Hong Kong57.The Standard and Poors 500 is a(n) __________ weighted index.A. equallyB. priceC. valueD. share58. A firm that fails to pay dividends on its preferred stock is said to be _________.A. insolventB. in arrearsC. insufferableD. delinquent/doc/50f32b22dd36a32d73758155.html rge well-known companies often issue their own short term unsecured debt notes directly to the public,rather than borrowing from banks, their notes are called _________.A. certificates of depositB. repurchase agreementsC. banker's acceptancesD. commercial paper60.Which of the following is most like a short-term collateralized loan?A. Certificate of depositB. Repurchase agreementC. Banker's acceptanceD. Commercial paper61.Eurodollars are _________.A. dollar denominated deposits at any foreign bank or foreign branch of an American bankB. dollar denominated bonds issued by firms outside their home marketC. currency issued by Euro Disney and traded in FranceD. dollars that wind up in banks as a result of money laundering activities62.Which of the following is used to back international sales of goods and services?A. Certificate of depositB. Banker's acceptanceC. Eurodollar depositsD. Commercial paper63.Treasury notes have initial maturities between ________ years.A. 2 and 4B. 5 and 10C. 10 and 30D. 1 and 1064.Which of the following are not characteristic of common stock ownership?A. Residual claimantB. Unlimited liabilityC. Voting rightsD. Limited life of the security65.If you thought prices of stock would be rising over the next few months you may wish to__________________ on the stock.A. purchase a call optionB. purchase a put optionC. sell a futures contractD. place a short sale order66. A typical bond price quote includes all but which one of the following?A. Daily high price for the bondB. Closing bond priceC. Yield to maturityD. Dividend yield67.What are business firms most likely to use derivative securities for?A. HedgingB. SpeculatingC. Doing calculus problemsD. Market making68.What would you expect to have happened to the spread between yields on commercial paper and Treasurybills immediately after September 11, 2001?A. No change, as both yields will remain the same.B. Increase, the spread usually increases in response to a crisis.C. Decrease, the spread usually decreases in response to a crisis.D. No change, as both yields will move in the same direction.69. A stock quote indicates a stock price of $60 and a dividend yield of 3%. The latest quarterly dividendreceived by stock investors must have been ______ per share.A. $0.55B. $1.80C. $0.45D. $1.2570.Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 millionand $150 million respectively. If you were to construct a price-weighted index of the three stocks what would be the index value?A. 300B. 39C. 43A. Bankers acceptancesB. EurodollarC. Repurchase agreementD. Treasury note72.The Federal Reserve Board of Governors directly controls which of the following interest rates?A. Bankers acceptancesB. Brokers callC. Federal fundsD. LIBOR73.You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wishedto construct an index to track your portfolio performance your best match for your portfolio would be to construct a/an ______.A. value weighted indexB. equal weighted indexC. price weighted indexD. bond price index74.In a ___________ index changes in the value of the stock with the greatest market value will move theindex value the most everything else equal.A. value weighted indexB. equal weighted indexC. price weighted indexD. bond price index75. A corporation in a 34% tax bracket invests in the preferred stock of another company and earns a 6% pre-tax rate of return. An individual investor in a 15% tax bracket invests in the same preferred stock and earns the same pre-tax return. The after tax return to the corporation is _______ and the after tax return to the individual investor is _______.A. 3.96%; 5.1%B. 5.39%; 5.1%C. 6.00%; 6.00%D. 3.96%; 6.00%76.All but which one of the following indices is value weighted?A. Nasdaq CompositeB. S&P 500C. Wilshire 5000D. DJIA77.What is the tax exempt equivalent yield on a 9% bond yield given a marginal tax rate of 28%?78. A tax free municipal bond provides a yield of 3.2%. What is the equivalent taxable yield on the bond givena 35% tax bracket?A. 3.20%B. 3.68%C. 4.92%D. 5.00%79.An index computed from a simple average of returns is a/an _____.A. equal weighted indexB. value weighted indexC. price weighted indexD. share weighted index80. A tax free municipal bond provides a yield of 2.34%. What is the equivalent taxable yield on the bondgiven a 28% tax bracket?A. 2.34%B. 2.68%C. 3.25%81.The Chompers Index is a price weighted stock index based on the 3 largest fast food chains. The stockprices for the three stocks are $54, $23, and $44. What is the price weighted index value of the Chompers Index?A. 23.43B. 35.36C. 40.33D. 49.5882.The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation.The stock prices for the five stocks are $10, $20, $80, $50 and $40. The price of the last stock was just split2 for 1 and the stock price was halved from $40 to $20. What is the new divisor for a price weighted index?A. 5.00B. 4.85C. 4.50D. 4.7583. A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares foreach is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58, what is the new index value?84. A benchmark market value index is comprised of three stocks. Yesterday the three stocks were pricedat $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the one day rate of return on the index?A. 5.78%B. 4.35%C. 6.16%D. 7.42%85.Which of the following mortgage scenarios will benefit the homeowner the most?A. Adjustable rate mortgage when interest rate increases.B. Fixed rate mortgage when interest rates falls.C. Fixed rare mortgage when interest rate rises.D. None of the above, as banker's interest will always be protected.2 Key1.Which of the following is not a money market instrument?A. Treasury billB. Commercial paperC.Preferred stockD. Banker's acceptanceBodie - Chapter 02 #1Difficulty: Easy2.Thirteen week T-bill auctions are conducted ____.A. dailyB. weeklyC. monthlyD. quarterlyBodie - Chapter 02 #2Difficulty: Easy3.When computing the bank discount yield you would use ____ days in the year.A. 260B. 360C. 3654. A dollar denominated deposit at a London bank is called _____.A. eurodollarsB. LIBORC. fed fundsD. banker's acceptanceBodie - Chapter 02 #4Difficulty: Easy5.Money market securities are sometimes referred to as "cash equivalent" because _____.A. they are safe and marketableB. they are not liquidC. they are high riskD. they are low denominationBodie - Chapter 02 #5Difficulty: Easy6.The most actively traded money market security isA. Treasury billsB. Bankers' AcceptancesC. Certificates of DepositD. Common stockBodie - Chapter 02 #6Difficulty: Medium 7.______ voting of common stock gives minority shareholders the most representation on the board of directors.A. MajorityB.CumulativeC. RightsD. ProxyBodie - Chapter 02 #7Difficulty: Medium8.An investor in a T-bill earns interest by _________.A. receiving interest payments every 90 daysB. receiving dividend payments every 30 daysC. converting the T-bill at maturity into a higher valued T-noteD.buying the bill at a discount from the face value received at maturity9.______ would not be included in the EAFE index.A. AustraliaB. CanadaC. FranceD. JapanBodie - Chapter 02 #9Difficulty: Hard10._____ is considered to be an emerging market country.A. FranceB. NorwayC. BrazilD. CanadaBodie - Chapter 02 #10Difficulty: Medium11.Which one of the following is a true statement?A.D ividends on preferred stocks are tax-deductible to individual investors but not to corporate investorsB. Common dividends cannot be paid if preferred dividends are in arrears on cumulative preferred stockC. Preferred stockholders have voting powerD. Investors can sue managers for nonpayment of preferred dividendsBodie - Chapter 02 #11Difficulty: Medium12.The bid price of a treasury bill is _________.A. the price at which the dealer in treasury bills is willing to sell the billB.the price at which the dealer in treasury bills is willing to buy the billC. greater than the ask price of the treasury bill expressed in dollar termsD. the price at which the investor can buy the treasury billBodie - Chapter 02 #12Difficulty: Easy13.The German stock market is measured by which market index?A. FTSEB. Dow Jones 30C. DAXBodie - Chapter 02 #13Difficulty: Easy14.Deposits of commercial banks at the Federal Reserve are called _____.A. bankers acceptancesB. federal fundsC. repurchase agreementsD. time depositsBodie - Chapter 02 #14Difficulty: Easy15.Which of the following is not a true statement regarding municipal bonds?A. A municipal bond is a debt obligation issued by state or local governments.B. A municipal bond is a debt obligation issued by the Federal Government.C. The interest income from a municipal bond is exempt from federal income taxation.D.T he interest income from a municipal bond is exempt from state and local taxation in the issuing state.Bodie - Chapter 02 #15Difficulty: Easy16.Which of the following is not a characteristic of a money market instrument?A. LiquidityB. MarketabilityC. Low riskD. Maturity greater than one yearBodie - Chapter 02 #16Difficulty: Easy17.An individual who goes short in a futures positionA. commits to delivering the underlying commodity at contract maturityB. commits to purchasing the underlying commodity at contract maturityC. has the right to deliver the underlying commodity at contract maturityD. has the right to purchase the underlying commodity at contract maturityBodie - Chapter 02 #17Difficulty: Easy18.Which of the following is not a nickname for an agency associated with the mortgage markets?A. Fannie MaeB. Freddie MacD. Ginnie MaeBodie - Chapter 02 #18Difficulty: Easy/doc/50f32b22dd36a32d73758155.html mercial paper is a short-term security issued by __________ to raise funds.A. the Federal ReserveB. commercial banksC. large well-known companiesD. the New York Stock ExchangeBodie - Chapter 02 #19Difficulty: Easy20.The maximum maturity on commercial paper isA. 270 daysB. 180 daysC. 90 daysD. 30 daysBodie - Chapter 02 #20Difficulty: Medium21.Which one of the following is a true statement regarding the Dow Jones Industrial Average?A. It is a value-weighted average of 30 large industrial stocksB. It is a price-weighted average of 30 large industrial stocksC. It is a price-weighted average of 100 large stocks traded on the New York Stock ExchangeD. It is a value-weighted average of all stocks traded on the New York Stock ExchangeBodie - Chapter 02 #2122.Treasury bills are financial instruments issued by __________ to raise funds.A. commercial banksB. the Federal GovernmentC. large corporationsD. state and city governmentsBodie - Chapter 02 #22Difficulty: Easy23.Which of the following are true statements about T-bills?I. T-bills typically sell in denominations of $10,000II. Income earned on T-bills is exempt from all Federal taxesB. I and II onlyC. I and III onlyD. I, II and IIIBodie - Chapter 02 #23Difficulty: Medium24. A bond that has no collateral is called _________.A. a callable bondB.a debentureC. a junk bondD. a mortgageBodie - Chapter 02 #24Difficulty: Easy 25. A __________ gives its holder the right to sell an asset for a specified exercise price on or before a specified expiration date.A. call optionB. futures contractC.put optionD. interest rate swapBodie - Chapter 02 #25Difficulty: Easy 26. A T-bill quote sheet has 90 day T-bill quotes with a 4.92 bid and a 4.86 ask. If the bill has a $10,000 face value an investor could buy this bill forA. $10,000.00B. $9,878.50C. $9,877.00D. $9,880.1627.Which one of the following is a true statement regarding corporate bonds?A.A corporate callable bond gives its holder the right to exchange it for a specified number of thecompany's common sharesB. A corporate debenture is a secured bondC.A corporate convertible bond gives its holder the right to exchange it for a specified number of thecompany's common sharesD. Holders of corporate bonds have voting rights in the companyBodie - Chapter 02 #27A. usually less than 50% of the yield on taxable bondsB. normally about 90% of the yield on taxable bondsC. greater than the yield on taxable bondsD. less than the yield on taxable bondsBodie - Chapter 02 #28Difficulty: Easy29.__________ is not a money market instrument.A. A certificate of depositB. A treasury billC. A treasury bondD. Commercial paperBodie - Chapter 02 #29Difficulty: Easy 30.An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The investor's actual annual rate of return on this investment was _____.A. 4.80%B. 4.97%C. 5.47%D. 5.74%Bodie - Chapter 02 #30Difficulty: Hard31.The U.K. stock index is the _________.A.DAXB. FTSEC. GSED. TSEBodie - Chapter 02 #31Difficulty: Easy。

Financial Markets and Institutions, 8e (Mishkin)Chapter 20 The Mutual Fund Industry20.1 Multiple Choice1) At the beginning of 2013, mutual funds held about ________ of the U.S. stock market was held by mutual funds.A) 30%B) 50%C) 10%D) 70%Answer: ATopic: Chapter 20.1 The Growth of Mutual FundsQuestion Status: Updated from Previous Edition2) The origins of mutual funds can be traced back to the mid to late 1800s in________.A) England and ScotlandB) New York CityC) BostonD) GermanyAnswer: ATopic: Chapter 20.1 The Growth of Mutual FundsQuestion Status: New Question3) ________ intermediation means that small investors can pool their funds with other investors to purchase high face value securities.A) LiquidityB) FinancialC) DenominationD) ShareAnswer: CTopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition4) Mutual funds offer investors all of the following exceptA) greater-than-average returns.B) diversified portfolios.C) lower transaction costs.D) professional investment management.Answer: ATopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition5) Mutual fundsA) pool the resources of many small investors by selling these investors shares and using the proceeds to buy securities.B) allow small investors to obtain the benefits of lower transaction costs in purchasing securities.C) provide small investors a diversified portfolio that reduces risk.D) do all of the above.E) do only A and B of the above.Answer: DTopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition6) ________ enables mutual funds to consistently outperform a randomly selected group of stocks.A) Managerial expertiseB) DiversificationC) Denomination intermediationD) None of the aboveAnswer: DTopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition7) At the end of 2012 there were over ________ separate mutual funds with total assets over ________.A) 800; $10 trillionB) 7,500; $13 trillionC) 10,000; $10 trillionD) 1,000; $7 trillionAnswer: BTopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Updated from Previous Edition8) Most mutual funds are structured in two ways. The most common structure is a(n) ________ fund, from which shares can be redeemed at any time at a price that is tied to the asset value of the fund. A(n) ________ fund has a fixed number of nonredeemable shares that are traded in the over-the-counter market.A) closed-end; open-endB) open-end; closed-endC) no-load; closed-endD) no-load; loadE) load; no-loadAnswer: BTopic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition9) Which of the following is an advantage to investors of an open-end mutual fund?A) Once all the shares have been sold, the investor does not have to put in more money.B) The investors can sell their shares in the over-the-counter market with low transaction fees.C) The fund agrees to redeem shares at any time.D) The market value of the fund's shares may be higher than the value of the assets held by the fund.Answer: CTopic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition10) The net asset value of a mutual fund isA) determined by subtracting the fund's liabilities from its assets and dividing by the number of shares outstanding.B) determined by calculating the net price of the assets owned by the fund.C) calculated every 15 minutes and used for transactions occurring during the next 15-minute interval.D) calculated as the difference between the fund's assets and its liabilities. Answer: ATopic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition11) ________ funds are the simplest type of investment funds to manage.A) BalancedB) Global equityC) GrowthD) IndexAnswer: DTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition12) The majority of mutual fund assets are now owned byA) individual investors.B) institutional investors.C) fiduciaries.D) business organizations.E) retirees.Answer: ATopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition13) Capital appreciation funds select stocks of ________ and tend to be ________ risky than total return funds.A) large, established companies that pay dividends regularly; moreB) large, established companies that pay dividends regularly; lessC) companies expected to grow rapidly; moreD) companies expected to grow rapidly; lessAnswer: CTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition14) From largest to smallest in terms of total assets, the four classes of mutual funds areA) equity funds, bond funds, hybrid funds, money market funds.B) equity funds, money market funds, bond funds, hybrid funds.C) money market funds, equity funds, hybrid funds, bond funds.D) bond funds, money market funds, equity funds, hybrid funds.Answer: BTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition15) Measured by assets, the most popular type of bond fund is the ________ bond fund.A) state municipalB) strategic incomeC) governmentD) high-yieldAnswer: BTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition16) People who take their money out of insured bank deposits to invest in uninsured money market mutual funds have ________ risk because money market funds invest in ________ assets.A) high; long-termB) low; short-termC) high; short-termD) low; long-termAnswer: BTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition17) The largest share of assets held by money market mutual funds isA) Treasury bills.B) certificates of deposit.C) commercial paper.D) repurchase agreements.Answer: CTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition18) Which of the following is a feature of index funds?A) They have lower fees.B) They select and hold stocks to match the performance of a stock index.C) They do not require managers to select stocks and decide when to buy and sell.D) All of the above.Answer: DTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition19) A deferred-load mutual fund charges a commissionA) when shares are purchased.B) when shares are sold.C) both when shares are purchased and when they are sold.D) when shares are redeemed.Answer: DTopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition20) Over the past twenty years, mutual fund fees have ________, largely because________.A) fallen; SEC fee disclosure rules have led to greater competitionB) risen; investors have learned that funds with high fees provide better performanceC) risen; there has been collusion between large mutual fund companiesD) fallen; advances in information technology have lowered transaction costs Answer: ATopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition21) Which of the following is most likely to be a no-load fund?A) Value fundsB) Hedge fundsC) Growth fundsD) Index fundsAnswer: DTopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition22) When investors switch between funds within the same fund family, mutual funds may chargeA) a contingent deferred sales charge.B) a redemption fee.C) an exchange fee.D) 12b-1 fees.E) an account maintenance fee.Answer: CTopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition23) The Securities Acts of 1933 and 1934 did notA) regulate the activities of investment funds.B) require funds to register with the SEC.C) include antifraud rules covering the purchase and sale of fund shares.D) apply to investment funds.Answer: BTopic: Chapter 20.6 Regulation of Mutual FundsQuestion Status: Previous Edition24) The largest share of total investment in mutual funds is inA) stock funds.B) hybrid funds.C) bond funds.D) money market funds.Answer: ATopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition25) Over ________ of the total daily volume in stocks is due to institutions initiating trades.A) 70%B) 50%C) 25%D) 90%Answer: ATopic: Chapter 20.6 Regulation of Mutual FundsQuestion Status: New Question26) Hedge funds areA) low risk because they are market-neutral.B) low risk if they buy Treasury bonds.C) low risk because they hedge their investments.D) high risk because they are market-neutral.E) high risk, even though they may be market-neutral.Answer: ETopic: Chapter 20.7 Hedge FundsQuestion Status: Previous Edition27) The near collapse of Long Term Capital Management was caused byA) the high management fees charged by the fund's two Nobel Prize winners.B) the fund's high leverage ratio of 20 to 1.C) a sharp decrease in the spread between corporate bonds and Treasury bonds.D) a sharp increase in the spread between corporate bonds and Treasury bonds.E) the fund's shift away from a market-neutral investment strategy.Answer: DTopic: Chapter 20.7 Hedge FundsQuestion Status: Previous Edition28) Conflicts arise in the mutual funds industry because ________ cannot effectively monitor ________.A) investment advisers; directorsB) directors; shareholdersC) shareholders; investment advisersD) investment advisers; stocks that will outperform the overall marketAnswer: CTopic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition29) Late trading is the practice of allowing orders received ________ to trade at the ________ net asset value.A) before 4:00 PM; 4:00 PMB) after 4:00 PM; 4:00 PMC) after 4:00 PM; next day'sD) before 4:00 PM; previous day'sAnswer: BTopic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition30) Market timingA) takes advantage of time differences between the east and west coasts of the United States.B) takes advantage of arbitrage opportunities in foreign stocks.C) takes advantage of the time lag between the receipt and execution of orders.D) is discouraged by the stiff fees mutual funds charge every investor for buying and then selling shares on the same day.Answer: BTopic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition31) Late trading and market timingA) allow large, favored investors in a mutual fund to profit at the expense of other investors in the fund.B) hurt ordinary investors by increasing the number of fund shares and diluting the fund's net asset value.C) are both A and B of the above.D) are none of the above.Answer: CTopic: Chapter 20.8 Conflicts of Interest in the Mutual Fund Industry Question Status: Previous Edition32) Which of the following is not a proposal to deal with abuses in the mutual fund industry?A) Strictly enforce the 4:00 PM net asset value rule.B) Make redemption fees mandatory.C) Disclose compensation arrangements for investment advisers.D) Increase the number of dependent directors.Answer: DTopic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition33) ________ means the investors can convert their investment into cash quickly at a low cost.A) Liquidity intermediationB) Denomination intermediationC) DiversificationD) Managerial expertiseAnswer: ATopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition34) At the start of 2014, one share of Berkshire Hathaway's A-shares was trading at over $150,000. ________ in an mutual fund gives a small investor access to these shares.A) Liquidity intermediationB) Denomination intermediationC) DiversificationD) Managerial expertiseAnswer: BTopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition35) Mutual fund companies frequently offer a number of separate mutual funds called ________.A) indexesB) complexesC) componentsD) actuariesAnswer: BTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition36) Equity funds can be placed in which class according to the Investment Company Institute?A) Capital appreciation fundsB) World fundsC) Total return fundsD) All of the aboveAnswer: DTopic: Chapter 20.4 Investment Objective Classes Question Status: Previous Edition37) Government bonds are essentially default risk-free, ________ returns.A) and will yield highB) and will yield the highestC) but will have relatively lowD) none of the aboveAnswer: CTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition38) ________ bonds combine stocks into one fund.A) HybridB) Money marketC) MunicipalD) EquityAnswer: ATopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition39) All ________ are open-end investment funds that invest only in money market securities.A) Stock fundsB) Bond fundsC) Money market mutual fundsD) all of the aboveAnswer: CTopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition20.2 True/False1) The larger the number of shares traded in a stock transaction, the lower the transaction costs per share.Answer: TRUETopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition2) The increase in the number of defined contribution pension funds has slowed the growth of mutual funds.Answer: FALSETopic: Chapter 20.1 The Growth of Mutual FundsQuestion Status: Previous Edition3) Mutual funds accounted for $5.3 trillion, or 27%, of the $19.5 trillion U.S. retirement market at the beginning of 2013.Answer: TRUETopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Updated from Previous Edition4) Among the investors in mutual funds, only about 25% cite preparing for retirement as one of their main reasons for holding shares.Answer: FALSETopic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Updated from Previous Edition5) Open-end mutual funds are more common than closed-end funds.Answer: TRUETopic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition6) The net asset value of a mutual fund is the average market price of the stocks, bonds, and other assets the fund owns.Answer: FALSETopic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition7) A mutual fund's board of directors picks the securities that will be held and makes buy and sell decisions.Answer: FALSETopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition8) Money market mutual funds originated when the brokerage firm Merrill Lynch offered its customers an account from which funds could be taken to purchase securities and into which funds could be deposited when securities were sold. Answer: TRUETopic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition9) A deferred load is a fee charged when shares in a mutual fund are redeemed. Answer: TRUETopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition10) Several academic research studies show that investors earn higher returns by investing in mutual funds that charge higher fees.Answer: FALSETopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition11) Hedge funds have a minimum investment requirement of between $100,000 and$20 million, with the typical minimum investment being $1 million.Answer: TRUETopic: Chapter 20.7 Hedge FundsQuestion Status: New Question12) SEC research suggests that about three-fourths of mutual funds let privileged shareholders engage in market timing.Answer: TRUETopic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition13) One factor explaining the rapid growth in mutual funds is that they are financial intermediaries that are not regulated by the federal government.Answer: FALSETopic: Chapter 20.1 The Growth of Mutual FundsQuestion Status: Previous Edition14) Whether a fund is organized as a closed- or an open-end fund, is will have the same basic organizational structure.Answer: TRUETopic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition15) The primary purpose of loads is to provide compensation for sales brokers. Answer: TRUETopic: Chapter 20.5 Fee Structure of Investment FundsQuestion Status: Previous Edition16) Mutual funds are regulated under four federal laws designed to protect investors. Answer: TRUETopic: Chapter 20.6 Regulation of Mutual FundsQuestion Status: Previous Edition20.3 Essay1) What benefits do mutual funds offer investors?Topic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: Previous Edition2) How is a mutual fund's net asset value calculated?Topic: Chapter 20.3 Mutual Fund StructureQuestion Status: Previous Edition3) How did money market mutual funds originate and why did they become especially popular in the late 1970s and early 1980s?Topic: Chapter 20.1 The Growth of Mutual FundsQuestion Status: Previous Edition4) How does the governance structure of mutual funds lead to asymmetric information and conflicts of interest?Topic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition5) Describe the practices of late trading and market timing and explain how these practices harm a mutual fund's shareholders.Topic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition6) Discuss the proposals that have been made to reduce the conflict of interest abuses in the mutual funds industry.Topic: Chapter 20.8 Conflicts of Interest in the Mutual Fund IndustryQuestion Status: Previous Edition7) How is an index fund different from the other four primary investment objective classes for mutual funds?Topic: Chapter 20.4 Investment Objective ClassesQuestion Status: New Question8) Discuss the four primary classes of mutual funds available to investors.Topic: Chapter 20.4 Investment Objective ClassesQuestion Status: Previous Edition9) What are the five benefits of mutual funds?Topic: Chapter 20.2 Benefits of Mutual FundsQuestion Status: New Question10) What is the difference between an open-end and a closed-end mutual fund? Topic: Chapter 20.3 Mutual Fund StructureQuestion Status: New Question11) What are two key differences between a traditional mutual fund and a hedge fund?Topic: Chapter 20.7 Hedge FundsQuestion Status: New Question。

米什金《货币金融学》（第11版）笔记和课后习题详解（1）浓缩内容精华，整理名校笔记。

（2）解析课后习题，提供详尽答案。

国内外教材一般没有提供课（章）后习题答案或者答案很简单，（3）补充相关要点，强化专业知识。

一般来说，国外英文教材的中译本不太符合中国学生的思维习惯，有些语言的表述不清或条理性不强而给学习带来了不便，因此，对每章复习笔记的一些重要知识点和一些习题的解答，我们在不违背原书原意的基础上结合其他相关经典教材进行了必要的整理和分析。

第1篇引言第1章为什么研究货币、银行与金融市场1.1 复习笔记1为什么研究金融市场金融市场是指将资金剩余方的资金转移到资金短缺方的市场。

通过债券市场和股票市场等金融市场，资金从没有生产用途的人向有生产用途的人转移，从而提高了经济效率。

此外，金融市场上的变化还直接影响着个人财富、企业和消费者的行为以及经济周期。

（1）债券市场和利率证券是对发行人未来收入与资产的索取权。

债券是债务证券，它承诺在一个特定的时间段中进行定期支付，债券包括长期债务工具和短期债务工具。

债券市场可以帮助政府和企业筹集到所需要的资金，并且是决定利率的场所，因此在经济活动中有着重要的特殊意义。

利率是借款的成本或为借入资金支付的价格（通常以一定时期内的利息额同本金额的比率来表示）。

利率对整个经济的健康运行有着很大的影响：对于个人来说，利率过高倾向于使其减少消费，增加储蓄；对于企业来说，利率还影响着企业的投资决策，利率的高低决定着企业投资成本的高低。

（2）股票市场普通股（简称为股票）代表持有者对公司的所有权，是对公司收益和资产的索取权。

股票市场是指人们交易股票的市场。

股票市场的价格波动会影响到人们的财富水平，进而对他们的消费意愿产生影响。

股票市场也是影响投资决策的一个重要因素，因为股票价格的高低决定了发行股票所能筹集到的资金数量，从而限制了企业可用于投资的资金。

企业股票的价格高，则他们可以筹集到更多的资金，用于购买更多的生产设施以及装备。

行为金融学文献讲解-卖方分析师的交易利益及声誉激励一、简介该文主要研究了卖方分析师面临的交易利益激励以及建立声誉的激励。

1、运用特别的数据本文验证了乐观的分析师、高声誉的分析师都能够为券商带来更多的经纪业务。

2、因此分析师就面临着一个利益冲突及选择，是选择实事求是以建立更高的声誉还是用有乐观偏向的盈利预测这种会误导投资者的方式来得到交易佣金的短期增加。

3、作者在本文中发现在均衡状态下预测的乐观倾向依然存在（控制了分析师和券商的附属关系后这种乐观倾向依然存在）4、在当时投行机构结构变革的时期本文的结果可能会有很重要的政策含义。

二、背景1、卖方分析师和投资银行的利益冲突当时成为主要媒体、监管机构以及学术圈关注的焦点，这也导致了美国的监管机构和美国10家最主要的投资银行之间达成了证券研究部门与投行以及经纪业务部门独立分开的协议。

这项协议的主要目的是为了使得分析师的研究和证券交易相分离，以避免分析师由于经纪业务的利益冲突而做出有偏的盈利预测。

2、然而作者认为监管机构把分析师和投行之间的利益冲突简单地认定为经纪业务的利益冲突是不恰当的；这种利益冲突在现实中已经出现很长时间了，但是由于数据的缺失，学术方面还未对这一现象进行细致的研究。

作者此篇文章的研究从实证上证明了乐观的分析师会为证券公司带来更多的经纪业务，使得分析师有上偏盈利预测和评价的激励。

3、但是分析师这部分的激励会受到声誉机制的限制。

因为分析师和投资者是一个不断重复的信息交互的关系，投机行为会给分析师的未来带来负面影响。

这种情况下分析师就必须在使用欺骗的手段获得更多佣金的短期利益和从建立声誉而带来的长期利益之间进行权衡。

本文中作者实证了有更高声誉的分析师在未来能够为所在券商带来更多的交易量；作者还证1明了市场对分析师声誉的更新是一致的，分析师预测越准确获得的期末声誉就越高。

4、考虑这个问题的另外一个角度是对于投资者理性的不同认知。

新古典主义的观点认为投资者是理性的，“就像消费者会对商人卖给他们的东西会怀疑一样，专业的投资者也会对分析师给他们的预测进行怀疑从而抵消有偏的信息。

关于芒格影响力的英语作文1Charlie Munger is a remarkable figure in the world of investment, whose influence has been profound and far-reaching. His unique insights and successful experiences have served as a guiding light for countless investors.Munger's advocacy for diversified investment strategies is one of his notable contributions. By spreading investments across various assets and industries, investors can effectively mitigate risks. This approach has prevented many from suffering significant losses during market downturns. For instance, during the economic crisis, those who followed his advice were able to weather the storm and preserve their wealth.Another key aspect of Munger's philosophy is his unwavering commitment to value investment. He emphasizes the importance of identifying undervalued assets and holding onto them for the long term. This strategy allows investors to benefit from the growth and appreciation of these assets over time. Many have achieved long-term stable returns by adhering to this principle, even in the face of market fluctuations.Munger's wisdom goes beyond specific investment tactics. It lies in his ability to think critically and independently. He encourages investors to do in-depth research, understand the underlying fundamentals ofbusinesses, and not be swayed by short-term market trends or herd mentality.In conclusion, Charlie Munger's influence in the investment field is not only about specific strategies but also about cultivating a rational and patient mindset. His teachings continue to inspire and guide investors on their journey to financial success.2Charlie Munger, a renowned figure in the business world, has had a profound and positive influence on the career planning of young people. His wisdom and insights have served as guiding lights, shaping the paths of many towards success and fulfillment.Munger's emphasis on focus and patience is highly inspiring. He believes that concentrating on one's chosen field and persevering through challenges is the key to achieving significant accomplishments. For instance, when a young person decides to pursue a career in technology, instead of being distracted by various fleeting trends, they should focus deeply on mastering the core skills and knowledge of that specific area. By doing so, they can accumulate valuable experience and expertise over time, gradually establishing themselves as experts in their field.Another crucial aspect of Munger's philosophy is his advocacy for lifelong learning. He emphasizes that in a rapidly evolving world, continuous acquisition of new knowledge and skills is essential. Thisencourages young people to stay curious and proactive in seeking learning opportunities. They might take online courses, attend industry conferences, or engage in self-study to keep abreast of the latest developments and trends.In conclusion, Charlie Munger's wisdom has provided young people with valuable perspectives and strategies for career planning. By following his teachings of focus, patience, and lifelong learning, young people are better equipped to navigate the complex and competitive professional landscape and build successful and rewarding careers.3Charlie Munger, a remarkable figure whose influence has profoundly transformed the way people think. His life philosophy offers invaluable insights that have reshaped our perspectives and decision-making processes.Munger's reverse thinking approach is truly revolutionary. It urges us to look at problems from diverse angles, defying conventional wisdom. For instance, when everyone is rushing towards a seemingly lucrative investment, his philosophy prompts us to question the hidden risks and potential downsides. This unconventional thinking pattern enables us to make more informed and rational choices.Another aspect of Munger's wisdom lies in his profound understanding of human psychological biases. He reminds us that ourminds are prone to biases that can cloud our judgment. When making decisions, we often fall victim to overconfidence or herd mentality. Munger's insights teach us to be vigilant and consciously overcome these biases, ensuring that our decisions are based on objective analysis rather than emotional impulses.In conclusion, Charlie Munger's philosophy has not only broadened our intellectual horizons but also equipped us with the tools to navigate the complex world with greater clarity and rationality. His teachings continue to inspire and guide us, shaping a more thoughtful and discerning approach to life's challenges and opportunities.4Charlie Munger, a name that resonates with profound influence and unwavering dedication, has left an indelible mark on the landscape of philanthropy. His contributions have not only transformed lives but have also shaped a better society for all.One of the significant areas where Munger's influence is palpable is in the realm of education. He has shown an unwavering commitment to providing educational opportunities for children in underprivileged regions. Through generous donations and the establishment of educational initiatives, he has opened the doors of knowledge and hope for countless young minds. These efforts have equipped these children with the tools they need to break free from the cycle of poverty and build a brighter futurefor themselves and their communities.Munger's concern for the environment is another aspect that showcases his far-reaching impact. His support for sustainable development has sparked a wave of change, inspiring individuals and organizations alike to adopt eco-friendly practices. By promoting the conservation of natural resources and the reduction of carbon footprints, he has played a crucial role in safeguarding the planet for future generations.In conclusion, Charlie Munger's philanthropic endeavors have had a multiplier effect, creating a ripple of positive change that continues to spread far and wide. His selfless contributions and visionary leadership serve as an inspiration for all, demonstrating the power of one individual to make a significant difference in the world.5Charlie Munger, a remarkable figure in the business world, has had a profound influence on corporate management. His leadership style offers valuable lessons and inspirations.One of the key aspects of Munger's approach is his emphasis on teamwork. He firmly believes that a collaborative team environment can foster efficient cooperation within an enterprise. For instance, by encouraging open communication and mutual support among team members, he enables them to leverage each other's strengths and overcome challenges collectively. This has led to the seamless execution of projectsand the achievement of common goals.Munger also attaches great importance to the construction of corporate culture. He understands that a strong and positive culture can enhance the cohesion and competitiveness of a business. A company with a shared set of values and a sense of purpose is more likely to attract and retain talented individuals who are passionate about its mission. This, in turn, drives innovation and growth.In conclusion, Munger's insights and practices provide a blueprint for successful enterprise management. By emulating his emphasis on teamwork and cultural development, businesses can strive for greater efficiency, unity, and long-term success in an increasingly competitive marketplace.。

有效市场假说专业英语小作文The Efficient Market Hypothesis (EMH) is a theory that suggests that financial markets are "informationally efficient," meaning that asset prices reflect all available information. This theory has significant implications for investors, as it suggests that it is impossible to consistently "beat the market" by exploiting mispricings in securities.There are three forms of the EMH: weak, semi-strong, and strong. The weak form asserts that all past market prices and data are already reflected in stock prices, making it impossible to predict future price movements based on historical data. The semi-strong form states that all publicly available information is already reflected in stock prices, making it impossible to achieve abnormal returns by trading on public information. The strong form suggests that all information, public and private, is reflected in stock prices, making it impossible to achieve abnormal returns even with insider information.The implications of the EMH are significant for both individual and institutional investors. If markets areindeed efficient, then it is impossible to consistently outperform the market through stock selection or market timing. This challenges the active management approach to investing, which relies on the belief that skilled managers can outperform the market through their stock-picking and market-timing abilities.Instead, the EMH suggests that investors should adopt a passive investment strategy, such as investing in index funds or exchange-traded funds (ETFs) that track the performance of a broad market index. This approach aims to replicate the market return rather than attempt to outperform it, and it often comes with lower fees and expenses compared to actively managed funds.Despite its theoretical appeal, the EMH has been subject to criticism and debate. Critics argue that the assumption of "informational efficiency" does not hold in the real world, as there are instances of market anomalies and bubbles that cannot be explained by the EMH. Additionally, the presence of behavioral biases and irrational investor behavior suggests that markets may not always be efficient in processing information.In conclusion, the Efficient Market Hypothesis is a fundamental concept in finance that has significant implications for investment strategy. While it suggeststhat it is difficult to consistently outperform the market, it has also sparked debate and criticism regarding its assumptions and real-world applicability.有效市场假说（EMH）是一种理论，它表明金融市场是“信息效率的”，这意味着资产价格反映了所有可用信息。

Financial Markets and Institutions^ 8e (Mishkin)Chapter 1 Why Study Financial Markets and Institutions?1.1 Multiple Choice1)Financial markets and institutionsA)involve the movement of huge quantities of money.B)affect the profits of businesses.C)affect the types of goods and seivices produced ill an economy.D)do all of the above.E)do only A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition2)Financial market activities affectA)personal wealth.B)spending decisions by individuals and business firms.C)the economy's location in the business cycle.D)all of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition3)Markets in wliich funds are tiansfeired from those who have excess funds available to those who have a shortage of available funds are calledA)commodity markets.B)funds markets.C)derivative exchange markets.D)financial markets.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition4)The price paid for the rental of bonowed funds (usually expressed as a percentage of the rental of $100 per year) is conmionly referred to as theA)inflation rate.B)exchange late.C)interest rate.D)aggiegate price level.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition5)The bond maikets are impoitant becauseA)they are easily the most widely followed financial markets in the United States.B)they are the maikets where interest rates are deteimined.C)they are the markets where foreign exchange rates are determined.D)all of the above.Answer: BTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition6)Interest rates are impoitant to financial institutions since an interest rate uicrease the cost of acquiring funds and the income fiom assets.A)decreases; decreasesB)increases; increasesC)decreases; increasesD)increases; decreasesAnswer: BTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition7)Typically, increasing interest ratesA)discourages individuals fiom saving.B)discourages corporate investments.C)encourages coipoiate expansion.D)encourages coipoiate borrowing.E)none of the above.Answer: BTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition8)Compared to interest rates on long-tenn U.S. govenmient bonds, interest rates onfluctuate more and are lower on average.A)medium-quality coipoiate bondsB)low-quality corporate bondsC)high-quality coipoiate bondsD)tluee-month Treasuiy billsE)none of the aboveAnswer: DTopic: Chapter 1.1 Why Study Financial MaiketsQuestion Status: Previous Edition9)Compared to interest rates on long-tenn U.S. govenmient bonds, interest rates on tluee-month Tieasuiy bills fluctuate and are on average.A)moie; lowerB)less; lowerC)moie; liigherD)less; higherAnswer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition10)The stock market is important becauseA)it is where interest rates are determined.B)it is the most widely followed financial market in the United States.C)it is where foreign exchange rates are deteimined.D)all of the above.Answer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition11)Stock prices since the 1980s have beenA)relatively stable, trending upward at a steady pace.B)relatively stable, tiending downward at a moderate rate.C)extremely volatile.D)unstable, trending downward at a moderate late.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition12)The largest one-day drop in the liistoiy of the Ainei ican stock markets occuii ed inA)1929.B)1987.C)2000.D)2001.Answer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition13) A declining stock market index due to lower share pricesA)reduces people's wealth and as a result may reduce theii willingness to spend.B)increases people's wealth and as a result may increase their willingness to spend.C)decreases the amount of fiinds that business firms can raise by selling newly issued stock.D)both A and C of the above.E)both B and C of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition14)Changes in stock pricesA)affect people's wealth and their willingness to spend.B)affect films' decisions to sell stock to finance investment spending.C)are characterized by considerable fluctuations.D)all of the above.E)only A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition15)(I) Debt markets are often referred to generically as the bond market.(II) A bond is a security that is a claim on the earnings and assets of a coiporation.A)(I) is true, (II) false.B)(I) is false, (II) true.C)Both are true.D)Both are false.Answer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition16)(I) A bond is a debt security that promises to make paymen's periodically fbr a specified peiiod of time. (II) A stock is a security that is a claim on the earnings and assets of a corporation.A)(I) is true, (II) false.B)(I) is false, (II) true.C)Both are true.D)Both are false.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition17)The price of one countiy's currency in terms of another's is calledA)the foreign exchange rate.B)the interest rate.C)the Dow Jones industrial average.D)none of the above.Answer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition18) A stronger dollar benefits and hurts .A)American businesses; American consumersB)American businesses; foreign businessesC)American consumers; American businessesD)foreign businesses; American consumersAnswer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition19) A weaker dollar benefits and hurts .A)American businesses; American consumersB)American businesses; foreign consumersC)American consumers; American businessesD)foreign businesses; American consumersAnswer: ATopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition20)From 1980 to early 1985 the dollar in value, thereby benefiting American.A)appreciated; businessesB)appreciated; consumeisC)depreciated; businessesD)depreciated; consumersAnswer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition21)In general, from 2001 tluougli 2013, the dollar in value relative to major foreign cunencies.A)appreciatedB)depreciatedC)remained about the sameAnswer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: New Question22)Money is defined asA)anything that is generally accepted in payment for goods and seivices or in the repayment of debt.B)bills of exchange.C) a riskless repositoiy of spending power.D)all of the above.E)only A and B of the above.Answer: ATopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition23)The organization responsible foi the conduct of monetary policy in the United States is theA)Compti oiler of the Currency.B)U.S. Tieasuiy.C)Federal Reserve System.D)Bureau of Monetaiy Affairs.Answer: CTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition24)The central bank of the United States isA)Citicoip.B)The Fed.C)Bank of America.D)The Tieasuiy.E)none of the above.Answer: BTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition25)Monetaiy policy is chiefly conceined withA)how much money businesses earn.B)the level of interest rates and the nation's money supply.C)how much money people pay in taxes.D)whether people have saved enough money fbr letiiement.Answer: BTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition26)Economists gioup commercial banks, savings and loan associations, credit unions, mutual funds, mutual savings banks, insurance companies, pension funds, and finance companies together under the heading financial intermediaiies. Financial intermediaiies A)act as middlemen, borrowing funds fiom those who have saved and lending these funds to others.B)produce notliing of value and are therefore a drain on society's resources.C)help piomote a more efficient and dynamic economy.D)do all of the above.E)do only A and C of the above.Answer: ETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition27)Economists gioup commercial banks, savings and loan associations, credit unions, mutual funds, mutual savings banks, insurance companies, pension funds, and finance companies together under the heading financial intermediaiies. Financial intermediariesA)act as middlemen, borrowing funds fiom those who have saved and lending these funds to others.B)play an impoilant role in determining the quantity of money in the economy.C)help promote a more efficient and dynamic economy.D)do all of the above.E)do only A and C of the above.Answer: DTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition28)Banks are important to the study of money and the economy because theyA)provide a channel for linking those who want to save with those who want to invest.B)have been a source of financial innovation that is expanding the alternatives available to those wanting to invest theii money.C)are the only financial institution to play a role in determining tlie quantity of money in the economy.D)do all of the above.E)do only A and B of the above.Answer: ETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition29)Banks, savings and loan associations, mutual savings banks, and credit unionsA)are no longer inipoitant players ill financial inteimediation.B)have been providing seivices only to small depositors since deregulation.C)have been adept at innovating in response to changes in the regulatoiy environment.D)all of the above.E)only A and C of the above.Answer: CTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition30)(I) Banks are financial inteimediaries that accept deposits and make loans.(II) The tenn "banks" includes firms such as commercial banks, savings and loan associations, mutual savings banks, credit unions, insurance companies, and pension funds.A)(I) is true, (II) false.B)(I) is false, (II) true.C)Both are true.D) Both are false.Answer: ATopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous EditionA)Black FridayB)Black MondayC)Blackout DayD)none of the aboveAnswer: BTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition32)The largest financial intennediaiies areA)insurance companies.B)finance companies.C)banks.D)all of the above.Answer: CTopic: Chapter 1.2 Why Study Financial ListitutionsQuestion Status: Previous Edition33)In recent yearsA)interest rates have remained constant.B)the success of financial institutions has reached levels unpiecedented since the Great Depiession.C)stock markets have crashed.D)all of the above.Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition34) A securityA)is a claim oi price of property that is subject to ownei sliip.B)promises that payments will be made peiiodically fbr a specified peiiod of time.C)is the price paid fbr the usage of funds.D)is a claim on the issuers future income.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous EditionA)BanksB)Insurance companiesC)Finance companiesD)All of the aboveAnswer: DTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition36)Monetaiy policy affectsA)interest rates.B)inflation.C)business cycles.D)all of the above.Answer: DTopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition37) A rising stock market index due to higher share pricesA)incieases people's wealth and as a result may inciease their willingness to spend.B)increases the amount of funds that business films can raise by selling newly issued stock.C)decreases the amount of fiinds that business firms can raise by selling newly issued stock.D)both A and B of the above.Answer: DTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition38)From the peak of the high-tech bubble in 2000, the stock market by overby late 2002.A)collapsed; 75%B)rose; 35%C)collapsed; 30%D)rose; 50%Answer: CTopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition39)The Dow fell below 7,000 in 2009, only to stall a bull market inn, reaching new highs above in 2013.A)12,000B)10,000C)15,000D)19,000Answer: CTopic: Chapter 1.1 Why Study Financial Markets Question Status: New Question1.2 Tme/False1)Money is anything accepted by anyone as payment for sendees or goods.Answer: TRUETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition2)Interest rates are determined in the bond markets.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition3) A stock is a debt security that promises to make periodic payments fbr a specific period of time.Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition4)Monetaiy policy affects interest rates but has little effect on inflation or business cycles. Answer: FALSETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition5)The govenunent organization responsible fbr the conduct of monetaiy policy in the United States is the U.S. Treasury.Answer: FALSETopic: Chapter 1.2 Why Study Financial ListitutionsQuestion Status: Previous Edition6)Interest rates can be accurately described as the rental price of money.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition7)Holding eveiytliiiig else constant, as the dollar weakens vacations abroad become less attractive.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition8)In recent years, financial markets have become more stable and less risky. Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition9)Financial innovation has provided moie options to both investors and borrowers. Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition10) A financial inteimediaiy bonows funds fiom people who have saved.Answer: TRUETopic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition11)Holding everything else constant, as the dollar stiengtliens fbreigiieis will buy more U.S. exports.Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition12)In a bull market stock prices are rising, on average.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition13)Financial institutions are among the largest employers in the countiy and frequently pay very high salaries.Answer: TRUETopic: Chapter 1.3 Applied Managerial PerspectiveQuestion Status: Previous Edition14)Different interest rates have a tendency to move in unison.Answer: TRUETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition15)Financial markets are what makes financial institutions work.Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition16)In recent years, financial markets have become more risky. However, only a limited number of tools (such as derivatives) are available to assist in managing this risk. Answer: FALSETopic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition17)Although the internet lias changed many aspects of our lives, it hasn't proven very useful for collecting and/or analyzing financial and economic data.Answer: FALSETopic: Chapter 1.4 How We Study Financial Markets and Institutions Question Status: New Question1.3 Essay1)Have interest rates been more or less volatile in recent years? Why?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition2)Why should consumers be concerned with movements in fbreign exchange rates? Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition3)How does the value of the dollar affect the competitiveness of American businesses? Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition4)What is monetary policy and who is responsible fbr its implementation?Topic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition5)What are financial intermediaiies and what do they do?Topic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition6)What is money?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition7)How does a bond differ fiom a stock?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition8)Why is the stock market so important to individuals, films, and the economy? Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition9)What is the cential bank and what does it do?Topic: Chapter 1.2 Why Study Financial InstitutionsQuestion Status: Previous Edition10)If you are plamiing a vacation to Europe, do you prefer a strong dollar 01 weak dollar relative to the euio? Why?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: Previous Edition11)How has the stock market perfoimed since 2000?Topic: Chapter 1.1 Why Study Financial MarketsQuestion Status: New Question。

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。