江西财经大学09－10学年第二学期期末考试试卷试卷代码：12423C 授课课时：48课时课程名称：货币银行学适用对象：国际学院学生试卷命题人李静试卷审核人王耀德Part I. This part has 20 Multiple Choice Questions and each one is worth 1 points. The total points for this part are 20 points. Please choose only one answer for each question.1The Fed can exert more precise control over _____ than it can over _____.(a)high-powered money; reserves(b)high-powered money; the monetary base(c)the monetary base; high-powered money(d)reserves; high-powered money2 A contract that requires the investor to sell securities on a future date is called aa)short contract.b)long contract.c)hedge.d)micro hedge.3The fact that depositors cannot distinguish good from bad banks is a(n)a)adverse selection problem.b)moral hazard problem.c)asymmetric information problem.d)too-big-to-fail problem.4Which of the following effects of a change in the money supply is most likely to affect the interest rate differently than the others?a)The expected inflation effectb)The income effectc)The liquidity effectd)The price level effect5If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply isa)$8000.b)$1200.c)$1200.8.d)$8400.6 A _____ in _____ increases the money supply since it causes the _____ to rise.a)decrease; reserve requirements; monetary baseb)rise; reserve requirements; money multiplierc)rise; reserve requirements; monetary based)decrease; reserve requirements; money multiplier7 A bank’s balance sheeta)shows that total assets equals total liabilities plus equity capital.b)lists sources and uses of bank funds.c)indicates whether or not the bank is solvent.d)does all of the above.8 A commercial bank is classified as a depository institution because ita)accepts deposits from individuals and institutions.b)makes loans.c)it is responsible for the conduct of monetary policy.d)does both (a) and (b) of the above9 A bank holding insufficient reserves can meet its reserve requirements bya)borrowing federal funds.b)borrowing from other banks.c)selling secondary reserves.d)all of the above.10decrease in wealtha)increases the demand for stocks.b)increases the demand for bonds.c)has no effect on bond demand.d)reduces the demand for housing..11The goals of monetary policy includea)output stability.b)stability in the foreign exchange markets.c)maintenance of the gold standard.d)all of the above.12 Bonds with relatively low risk of default are called _____ securities and have a rating of Baa (or BBB)and above; bonds with ratings below Baa (or BBB) have a higher default risk and are called _____.(a) investment grade; lower grade(b) investment grade; junk bonds(c) high quality; lower grade(d) high quality; junk bonds13Which of the following is not one of the eight basic puzzles about financial structure?a)Debt contracts are typically extremely complicated legal documents that place substantialrestrictions on the behavior of the borrower.b)Indirect finance, which involves the activities of financial intermediaries, is many times moreimportant than direct finance, in which businesses raise funds directly from lenders in financialmarkets.c)Collateral is a prevalent feature of debt contracts for both households and business.d)New security issues are the most important source of external funds to finance businesses.14If it is generally acceptable as a medium of exchange then ita)must be a commodity.b)must be a precious metal such as gold or silver.c)is money.d)all of the above.15Dividends are paid froma)liabilities.b)debts.c)net earnings.d)both (a) and (b) of the above.16As the price of a bond _____ and the expected return _____, bonds become more attractive to investors and the quantity demanded rises.a)falls; risesb)falls; fallsc)rises; risesd)rises; falls17 A security that pays $52.50 in one year and $110.25 in two years, with an interest rate of 5 percent, hasa present value ofa)$150.b)$162.50.c)$200.d)$300.18T he price of one country’s currency in terms of another’s is calleda)the exchange rate.b)the interest rate.c)the Dow Jones industrial average.d)none of the above.19If the Fed wants to inject reserves into the banking system, it will usuallya)purchase government securities.b)raise the discount rate.c)sell government securities.d)lower reserve requirements.20If the expected return on CBS stock rises from 5 to 10 percent and the expected return on NBC stock rises from 12 to 18 percent, then the expected return of holding CBS stock _____ relative to NBC stock and the demand for CBS stock _____.a)rises; risesb)rises; fallsc)falls; risesd)falls; fallsPartⅡ. This part has 10 True of False Questions and each one is worth 1 points. The total points for this part are 10 points.1 In a world without information and transaction costs, financial intermediaries would not exist.2 If reserve requirement were elimininated, it would be harder to control interest rates.3 The quantity demanded of an asset is positively related to its liquidity relative to alternative assets.4 The price-level effect from an increase in the money supply is a decrease in interest rates in response to the rise in the price level.5 The yield to maturity is greater than the coupon rate when the bond price is below its face value.6 Foreign exchange rates, like stock prices, should follow a random walk.7 Given the return on assets, the lower the bank capital, the higher the return for the owners of the bank.8 The goal for high employment should therefore not seek an unemployment level of zero.9 Banks are not the most important source of external funds used to finance businesses.10 If bonds of different maturities are close substitutes, their interest rates are more likely to move together.PartⅢ. This part has 4 Key Terms Questions and each one is worth 2.5 points. The total points for this part are 10 points. Please explain briefly for each key term.1 Default-free bonds2 Monetary base3 Open market operations4 Risk structure of interest ratesPartⅣ. This part has 5 Essay Questions and each one is worth 12 points. The total points for this part are 60 points. ( Please write down your answers as clearly as possible. If I can’t read yourhand-writing, I never assume your answers are right )1Explain two reasons why the Fed does not have complete control over the level of bank deposits and lows. Explain how a change in either factor affects the deposit expansion process.2Demonstrate graphically and explain how a reduction in default risk affects the demand or supply of corporate and Treasury bonds.3Explain the Fed’s three tools of monetary policy and how each is used to change the money supply.Does each tool affect the monetary base or the money multiplier?4Explain the concepts of asymmetric information, adverse selection, and moral hazard. When do adverse selection and moral hazard become relevant to the lending process? How has the financial system developed to deal with these problems?5 Why has the development of overnight loan markets made it more likely that banks will hold fewer excess reserves?。