货币金融学chapter2英文习题.docx

货币金融学chapter2英文习题.docx

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货币金融学chapter2英文习题

EconomicsofMoney，Banking，andFinancialMarkets,11e，GlobalEdition（Mishkin）

Chapter2AnOverviewoftheFinancialSystem

2.1FunctionofFinancialMarkets

1）Everyfinancialmarkethasthefollowingcharacteristic.

A）Itdeterminesthelevelofinterestrates.

B）Itallowscommonstocktobetraded。

C）Itallowsloanstobemade.

D）Itchannelsfundsfromlenders-saverstoborrowers-spenders.

Answer:

D

AACSB:

ReflectiveThinking

2）Financialmarketshavethebasicfunctionof

A）gettingpeoplewithfundstolendtogetherwithpeoplewhowanttoborrowfunds.

B）assuringthattheswingsinthebusinesscyclearelesspronounced。

C）assuringthatgovernmentsneedneverresorttoprintingmoney.

D）providingarisk-freerepositoryofspendingpower。

Answer：

A

AACSB：

ReflectiveThinking

3）Financialmarketsimproveeconomicwelfarebecause

A）theychannelfundsfrominvestorstosavers。

B）theyallowconsumerstotimetheirpurchasebetter。

C）theyweedoutinefficientfirms.

D）theyeliminatetheneedforindirectfinance.

Answer:

B

AACSB:

ReflectiveThinking

4）Well-functioningfinancialmarkets

A）causeinflation。

B）eliminatetheneedforindirectfinance.

C）causefinancialcrises。

D）allowtheeconomytooperatemoreefficiently.

Answer:

D

AACSB:

ReflectiveThinking

5）Abreakdownoffinancialmarketscanresultin

A）financialstability.

B）rapideconomicgrowth.

C）politicalinstability。

D）stableprices.

Answer：

C

AACSB：

ReflectiveThinking

6）Theprincipallender—saversare

A）governments。

B）businesses.

C）households.

D）foreigners。

Answer：

C

AACSB:

ApplicationofKnowledge

7）Whichofthefollowingcanbedescribedasdirectfinance?

A）Youtakeoutamortgagefromyourlocalbank.

B）Youborrow＄2500fromafriend。

C）Youbuysharesofcommonstockinthesecondarymarket。

D）Youbuysharesinamutualfund.

Answer:

B

AACSB：

AnalyticalThinking

8）Assumethatyouborrow＄2000at10％annualinteresttofinanceanewbusinessproject。

Forthisloantobeprofitable,theminimumamountthisprojectmustgenerateinannualearningsis

A）$400。

B）＄201.

C）＄200。

D）$199。

Answer:

B

AACSB：

AnalyticalThinking

9）Youcanborrow$5000tofinanceanewbusinessventure.Thisnewventurewillgenerateannualearningsof＄251.Themaximuminterestratethatyouwouldpayontheborrowedfundsandstillincreaseyourincomeis

A）25％.

B）12.5％。

C）10%。

D）5%.

Answer：

D

AACSB:

AnalyticalThinking

10）Whichofthefollowingcanbedescribedasinvolvingdirectfinance?

A）Acorporationissuesnewsharesofstock。

B）Peoplebuysharesinamutualfund。

C）Apensionfundmanagerbuysashort—termcorporatesecurityinthesecondarymarket.

D）Aninsurancecompanybuyssharesofcommonstockintheover—the-countermarkets。

Answer:

A

AACSB：

AnalyticalThinking

11）Whichofthefollowingcanbedescribedasinvolvingdirectfinance?

A）Acorporationtakesoutloansfromabank.

B）Peoplebuysharesinamutualfund.

C）Acorporationbuysashort-termcorporatesecurityinasecondarymarket.

D）Peoplebuysharesofcommonstockintheprimarymarkets。

Answer：

D

AACSB：

AnalyticalThinking

12）Whichofthefollowingcanbedescribedasinvolvingindirectfinance?

A）Youmakealoantoyourneighbor。

B）Acorporationbuysashareofcommonstockissuedbyanothercorporationintheprimarymarket。

C）YoubuyaU。

S.TreasurybillfromtheU。

S。

TreasuryatTreasuryDirect。

gov。

D）Youmakeadepositatabank。

Answer：

D

AACSB：

AnalyticalThinking

13）Whichofthefollowingcanbedescribedasinvolvingindirectfinance？

A）Youmakealoantoyourneighbor。

B）Youbuysharesinamutualfund.

C）YoubuyaU.S.TreasurybillfromtheU。

S.TreasuryatTreasuryDirect。

gov。

D）Youpurchasesharesinaninitialpublicofferingbyacorporationintheprimarymarket。

Answer：

B

AACSB:

AnalyticalThinking

14）Securitiesare________forthepersonwhobuysthem，butare________fortheindividualorfirmthatissuesthem.

A）assets;liabilities

B）liabilities；assets

C）negotiable；nonnegotiable

D）nonnegotiable；negotiable

Answer：

A

AACSB：

ReflectiveThinking

15）With________finance，borrowersobtainfundsfromlendersbysellingthemsecuritiesinthefinancialmarkets.

A）active

B）determined

C）indirect

D）direct

Answer:

D

AACSB:

ApplicationofKnowledge

16）Withdirectfinance，fundsarechanneledthroughthefinancialmarketfromthe________directlytothe________。

A）savers，spenders

B）spenders,investors

C）borrowers,savers

D）investors，savers

Answer:

A

AACSB：

ReflectiveThinking

17）Distinguishbetweendirectfinanceandindirectfinance。

WhichoftheseisthemostimportantsourceoffundsforcorporationsintheUnitedStates？

Answer：

Withdirectfinance,fundsflowdirectlyfromthelender/savertotheborrower。

Withindirectfinance，fundsflowfromthelender/savertoafinancialintermediarywhothenchannelsthefundstotheborrower/investor。

Financialintermediaries（indirectfinance）arethemajorsourceoffundsforcorporationsintheU.S.

AACSB:

ReflectiveThinking

2。

2StructureofFinancialMarkets

1）WhichofthefollowingstatementsaboutthecharacteristicsofdebtandequityisFALSE？

A）Theycanbothbelong—termfinancialinstruments.

B）Theycanbothbeshort-termfinancialinstruments.

C）Theybothinvolveaclaimontheissuer'sincome.

D）Theybothenableacorporationtoraisefunds.

Answer:

B

AACSB:

ReflectiveThinking

2）WhichofthefollowingstatementsaboutthecharacteristicsofdebtandequitiesisTRUE?

A）Theycanbothbelong—termfinancialinstruments.

B）Bondholdersareresidualclaimants.

C）Theincomefrombondsistypicallymorevariablethanthatfromequities。

D）Bondspaydividends。

Answer：

A

AACSB：

ReflectiveThinking

3）WhichofthefollowingstatementsaboutfinancialmarketsandsecuritiesisTRUE?

A）Abondisalong—termsecuritythatpromisestomakeperiodicpaymentscalleddividendstothefirm'sresidualclaimants.

B）Adebtinstrumentisintermediatetermifitsmaturityislessthanoneyear。

C）Adebtinstrumentisintermediatetermifitsmaturityistenyearsorlonger.

D）Thematurityofadebtinstrumentisthenumberofyears（term）tothatinstrument'sexpirationdate.

Answer：

D

AACSB:

ReflectiveThinking

4）Whichofthefollowingisanexampleofanintermediate-termdebt?

A）afifteen—yearmortgage

B）asixty—monthcarloan

C）asix—monthloanfromafinancecompany

D）athirty—yearU。

S。

Treasurybond

Answer:

B

AACSB:

AnalyticalThinking

5）Ifthematurityofadebtinstrumentislessthanoneyear，thedebtiscalled

A）short—term.

B）intermediate-term。

C）long—term.

D）prima-term.

Answer:

A

AACSB：

ApplicationofKnowledge

6）Long-termdebthasamaturitythatis

A）betweenoneandtenyears。

B）lessthanayear。

C）betweenfiveandtenyears.

D）tenyearsorlonger。

Answer：

D

AACSB：

ApplicationofKnowledge

7）WhenIpurchase________,Iownaportionofafirmandhavetherighttovoteonissuesimportanttothefirmandtoelectitsdirectors.

A）bonds

B）bills

C）notes

D）stock

Answer：

D

AACSB：

ApplicationofKnowledge

8）Equityholdersareacorporation's________。

Thatmeansthecorporationmustpayallofitsdebtholdersbeforeitpaysitsequityholders。

A）debtors

B）brokers

C）residualclaimants

D）underwriters

Answer:

C

AACSB:

ReflectiveThinking

9）Whichofthefollowingbenefitsdirectlyfromanyincreaseinthecorporation’sprofitability？

A）abondholder

B）acommercialpaperholder

C）ashareholder

D）aT—billholder

Answer:

C

AACSB：

ReflectiveThinking

10）Afinancialmarketinwhichpreviouslyissuedsecuritiescanberesoldiscalleda________market。

A）primary

B）secondary

C）tertiary

D）usedsecurities

Answer：

B

AACSB:

ApplicationofKnowledge

11）Animportantfinancialinstitutionthatassistsintheinitialsaleofsecuritiesintheprimarymarketisthe

A）investmentbank.

B）commercialbank.

C）stockexchange。

D）brokeragehouse.

Answer：

A

AACSB：

ApplicationofKnowledge

12）Whenaninvestmentbank________securities，itguaranteesapriceforacorporation'ssecuritiesandthensellsthemtothepublic.

A）underwrites

B）undertakes

C）overwrites

D）overtakes

Answer:

A

AACSB：

ApplicationofKnowledge

13）WhichofthefollowingisNOTasecondarymarket？

A）foreignexchangemarket

B）futuresmarket

C）optionsmarket

D）IPOmarket

Answer：

D

AACSB:

ReflectiveThinking

14）________workinthesecondarymarketsmatchingbuyerswithsellersofsecurities.

A）Dealers

B）Underwriters

C）Brokers

D）Claimants

Answer:

C

AACSB:

ApplicationofKnowledge

15）Acorporationacquiresnewfundsonlywhenitssecuritiesaresoldinthe

A）primarymarketbyaninvestmentbank.

B）primarymarketbyastockexchangebroker。

C）secondarymarketbyasecuritiesdealer.

D）secondarymarketbyacommercialbank.

Answer:

A

AACSB:

ReflectiveThinking

16）Acorporationacquiresnewfundsonlywhenitssecuritiesaresoldinthe

A）secondarymarketbyaninvestmentbank。

B）primarymarketbyaninvestmentbank。

C）secondarymarketbyastockexchangebroker.

D）secondarymarketbyacommercialbank.

Answer：

B

AACSB:

ReflectiveThinking

17）Animportantfunctionofsecondarymarketsisto

A）makeiteasiertosellfinancialinstrumentstoraisefunds.

B）raisefundsforcorporationsthroughthesaleofsecurities。

C）makeiteasierforgovernmentstoraisetaxes.

D）createamarketfornewlyconstructedhouses。

Answer：

A

AACSB：

ReflectiveThinking

18）Secondarymarketsmakefinancialinstrumentsmore

A）solid.

B）vapid.

C）liquid.

D）risky。

Answer：

C

AACSB:

ReflectiveThinking

19）Aliquidassetis

A）anassetthatcaneasilyandquicklybesoldtoraisecash.

B）ashare