第4单元 金融考试题 西南财经大学天府学院.docx

第4单元 金融考试题 西南财经大学天府学院.docx

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第4单元金融考试题西南财经大学天府学院

FinancialMarketsandInstitutions,7e（Mishkin）

Chapter4WhyDoInterestRatesChange?

4.1MultipleChoice

1）Asthepriceofabond________andtheexpectedreturn________,bondsbecomemoreattractivetoinvestorsandthequantitydemandedrises.

A）falls;rises

B）falls;falls

C）rises;rises

D）rises;falls

Answer:

A

2）Thesupplycurveforbondshastheusualupwardslope,indicatingthatastheprice________,ceterisparibus,the________increases.

A）falls;supply

B）falls;quantitysupplied

C）rises;supply

D）rises;quantitysupplied

Answer:

D

3）Whenthepriceofabondisabovetheequilibriumprice,thereisexcess________inthebondmarketandthepricewill________.

A）demand;rise

B）demand;fall

C）supply;fall

D）supply;rise

Answer:

C

4）Whenthepriceofabondisbelowtheequilibriumprice,thereisexcess________inthebondmarketandthepricewill________.

A）demand;rise

B）demand;fall

C）supply;fall

D）supply;rise

Answer:

A

5）Whenthepriceofabondis________theequilibriumprice,thereisanexcesssupplyofbondsandthepricewill________.

A）above;rise

B）above;fall

C）below;fall

D）below;rise

Answer:

B

6）Whenthepriceofabondis________theequilibriumprice,thereisanexcessdemandforbondsandthepricewill________.

A）above;rise

B）above;fall

C）below;fall

D）below;rise

Answer:

D

7）Whentheinterestrateonabondisabovetheequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.

A）demand;rise

B）demand;fall

C）supply;fall

D）supply;rise

Answer:

B

8）Whentheinterestrateonabondisbelowtheequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.

A）demand;rise

B）demand;fall

C）supply;fall

D）supply;rise

Answer:

D

9）Whentheinterestrateonabondis________theequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.

A）above;demand;fall

B）above;demand;rise

C）below;supply;fall

D）above;supply;rise

Answer:

A

10）Whentheinterestrateonabondis________theequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.

A）below;demand;rise

B）below;demand;fall

C）below;supply;rise

D）above;supply;fall

Answer:

C

11）Whenthedemandforbonds________orthesupplyofbonds________,interestratesrise.

A）increases;increases

B）increases;decreases

C）decreases;decreases

D）decreases;increases

Answer:

D

12）Whenthedemandforbonds________orthesupplyofbonds________,interestratesfall.

A）increases;increases

B）increases;decreases

C）decreases;decreases

D）decreases;increases

Answer:

B

13）Whenthedemandforbonds________orthesupplyofbonds________,bondpricesrise.

A）increases;decreases

B）decreases;increases

C）decreases;decreases

D）increases;increases

Answer:

A

14）Whenthedemandforbonds________orthesupplyofbonds________,bondpricesfall.

A）increases;increases

B）increases;decreases

C）decreases;decreases

D）decreases;increases

Answer:

D

15）Factorsthatdeterminethedemandforanassetincludechangesinthe

A）wealthofinvestors.

B）liquidityofbondsrelativetoalternativeassets.

C）expectedreturnsonbondsrelativetoalternativeassets.

D）riskofbondsrelativetoalternativeassets.

E）alloftheabove.

Answer:

E

16）Thedemandforanassetrisesif________falls.

A）riskrelativetootherassets

B）expectedreturnrelativetootherassets

C）liquidityrelativetootherassets

D）wealth

Answer:

A

17）Thehigherthestandarddeviationofreturnsonanasset,the________theasset's________.

A）greater;risk

B）smaller;risk

C）greater;expectedreturn

D）smaller;expectedreturn

Answer:

A

18）Diversificationbenefitsaninvestorby

A）increasingwealth.

B）increasingexpectedreturn.

C）reducingrisk.

D）increasingliquidity.

Answer:

C

19）Inarecessionwhenincomeandwealtharefalling,thedemandforbonds________andthedemandcurveshiftstothe________.

A）falls;right

B）falls;left

C）rises;right

D）rises;left

Answer:

B

20）Duringbusinesscycleexpansionswhenincomeandwealtharerising,thedemandforbonds________andthedemandcurveshiftstothe________.

A）falls;right

B）falls;left

C）rises;right

D）rises;left

Answer:

C

21）Higherexpectedinterestratesinthefuture________thedemandforlong-termbondsandshiftthedemandcurvetothe________.

A）increase;left

B）increase;right

C）decrease;left

D）decrease;right

Answer:

C

22）Lowerexpectedinterestratesinthefuture________thedemandforlong-termbondsandshiftthedemandcurvetothe________

A）increase;left.

B）increase;right.

C）decrease;left.

D）decrease;right.

Answer:

B

23）Whenpeoplebegintoexpectalargestockmarketdecline,thedemandcurveforbondsshiftstothe________andtheinterestrate________.

A）right;falls

B）right;rises

C）left;falls

D）left;rises

Answer:

A

24）Whenpeoplebegintoexpectalargerunupinstockprices,thedemandcurveforbondsshiftstothe________andtheinterestrate________.

A）right;rises

B）right;falls

C）left;falls

D）left;rises

Answer:

D

25）Anincreaseintheexpectedrateofinflationwill________theexpectedreturnonbondsrelativetothaton________assets,andshiftthe________curvetotheleft.

A）reduce;financial;demand

B）reduce;real;demand

C）raise;financial;supply

D）raise;real;supply

Answer:

B

26）Adecreaseintheexpectedrateofinflationwill________theexpectedreturnonbondsrelativetothaton________assets.

A）reduce;financial

B）reduce;real

C）raise;financial

D）raise;real

Answer:

D

27）Whentheexpectedinflationrateincreases,thedemandforbonds________,thesupplyofbonds________,andtheinterestrate________.

A）increases;increases;rises

B）decreases;decreases;falls

C）increases;decreases;falls

D）decreases;increases;rises

Answer:

D

28）Whentheexpectedinflationratedecreases,thedemandforbonds________,thesupplyofbonds________,andtheinterestrate________.

A）increases;increases;rises

B）decreases;decreases;falls

C）increases;decreases;falls

D）decreases;increases;rises

Answer:

C

29）Whenbondpricesbecomemorevolatile,thedemandforbonds________andtheinterestrate________.

A）increases;rises

B）increases;falls

C）decreases;falls

D）decreases;rises

Answer:

D

30）Whenbondpricesbecomelessvolatile,thedemandforbonds________andtheinterestrate________.

A）increases;rises

B）increases;falls

C）decreases;falls

D）decreases;rises

Answer:

B

31）Whenpricesinthestockmarketbecomemoreuncertain,thedemandcurveforbondsshiftstothe________andtheinterestrate________.

A）right;rises

B）right;falls

C）left;falls

D）left;rises

Answer:

B

32）Whenstockpricesbecomelessvolatile,thedemandcurveforbondsshiftstothe________andtheinterestrate________.

A）right;rises

B）right;falls

C）left;falls

D）left;rises

Answer:

D

33）Whenbondsbecomemorewidelytraded,andasaconsequencethemarketbecomesmoreliquid,thedemandcurveforbondsshiftstothe________andtheinterestrate________.

A）right;rises

B）right;falls

C）left;falls

D）left;rises

Answer:

B

34）Whenbondsbecomelesswidelytraded,andasaconsequencethemarketbecomeslessliquid,thedemandcurveforbondsshiftstothe________andtheinterestrate________.

A）right;rises

B）right;falls

C）left;falls

D）left;rises

Answer:

D

35）Factorsthatcausethedemandcurveforbondstoshifttotheleftinclude

A）anincreaseintheinflationrate.

B）anincreaseintheliquidityofstocks.

C）adecreaseinthevolatilityofstockprices.

D）alloftheabove.

E）noneoftheabove.

Answer:

D

36）Factorsthatcausethedemandcurveforbondstoshifttotheleftinclude

A）adecreaseintheinflationrate.

B）anincreaseinthevolatilityofstockprices.

C）anincreaseintheliquidityofstocks.

D）alloftheabove.

E）onlyAandBoftheabove.

Answer:

C

37）Duringaneconomicexpansion,thesupplyofbonds________andthesupplycurveshiftstothe________.

A）increases,left

B）increases,right

C）decreases,left

D）decreases,right

Answer:

B

38）Duringarecession,thesupplyofbonds________andthesupplycurveshiftstothe________.

A）increases,left

B）increases,right

C）decreases,left

D）decreases,right

Answer:

C

39）Anincreaseinexpectedinflationcausesthesupplyofbondsto________andthesupplycurvetoshifttothe________.

A）increase,left

B）increase,right

C）decrease,left

D）decrease,right

Answer:

B

40）Whenthefederalgovernment'sbudgetdeficitincreases,the________curveforbondsshiftstothe________.

A）demand;right

B）demand;left

C）supply;left

D）supply;right

Answer:

D

41）Whenthefederalgovernment'sbudgetdeficitdecreases,the________curveforbondsshiftstothe________.

A）demand;right

B）demand;left

C）supply;left

D）supply;right

Answer:

C

42）Whentheinflationrateisexpectedtoincrease,theexpectedreturnonbondsrelativetorealassetsfallsforanygiveninterestrate;asaresult,the________bondsfallsandthe________curveshiftstotheleft.

A）demandfor;demand

B）demandfor;supply

C）supplyof;demand

D）supplyof;supply

Answer:

A

43）Whentheinflationrateisexpectedtoincrease,therealcostofborrowingdeclinesatanygiveninterestrate;asaresult,the________bondsincreasesandthe__