江西财经大学09－10学年第二学期期末考试试卷试卷代码：12423B 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.1Models describing the determination of the money supply and the Fed’s role in this process normally focus on _____ rather than _____, since Fed actions have a more predictable effect on the former.(a)reserves; the monetary base(b)reserves; high-powered money(c)the monetary base; high-powered money(d)the monetary base; reserves2 A disadvantage of a forward contract is thata)it may be difficult to locate a counterparty.b)the forward market suffers from lack of liquidity.c)these contracts have default risk.d)all of the above.3The goals of bank asset management includea)maximizing risk.b)minimizing liquidityc)lending at high interest rates regardless of risk.d)purchasing securities with high returns and low risk.4If interest rates are expected to rise in the future, the demand for long-term bonds _____ and the demand curve shifts to the _____.a)rises; rightb)rises; leftc)falls; rightd)falls; left5The Fed’s most commonly used means of changing the money supply isa)changing reserve requirements.b)changing the discount rate.c)open market operations.d)changes in interest rate ceilings.6If the liquidity effect is smaller than the other effects, and the adjustment to expected inflation is immediate, then thea)interest rate will fall.b)interest rate will rise.c)interest rate will fall immediately below the initial level when the money supply grows.d)interest rate will rise immediately above the initial level when the money supply grows.7 A system of deposit insurancea)attracts risk-taking entrepreneurs into the banking industry.b)encourages bank managers to assume increased risk.c)increases the incentives of depositors to monitor the riskiness of their bank’s asset portfolio.d)does only (a) and (b) of the above.8The formula for the money multiplier that includes excess reserves and currency isa)m＝(1+c)÷( r＋e ＋c).b)M ＝1÷(r ＋e ＋c).c)M ＝(1＋c)÷( r ＋e＋c).d)D ＝1÷( r ＋e ＋c).9 The four players in the money supply process include(a)banks, depositors, borrowers, and the U.S. Treasury.(b)banks, depositors, the central bank, and the U.S. Treasury.(c)banks, depositors, the central bank, and borrowers.(d)banks, borrowers, the central bank, and the U.S. Treasury.10 The goals of monetary policy include(a)output stability.(b)price stability.(c)stability of the financial markets.(d)both (b) and (c) of the above11In the one-period valuation model, the current stock price increases if(a)the expected sales price increases.(b)the expected sales price falls.(c)the required return increases.(d)dividends are cut.12If the expected return on NBC stock rises from 5 to 10 percent and the expected return on CBS 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; falls13Which of the following statements is true?a)A bank’s assets are its uses of funds.b)A bank’s assets are its sources of funds.c)A bank’s liabilities are its uses of funds.d)Only (b) and (c) of the above are true.14When economists say that money promotes efficiency, they mean that moneya)increases transactions costs.b)encourages specialization and the division of labor.c)is inexpensive to produce.d)does both (b) and (c) of the above.15When the default risk in corporate bonds increases, other things equal, the demand curve for corporate bonds shifts to the _____ and the demand curve for Treasury bonds shifts to the _____.a)right; rightb)right; leftc)left; leftd)left; right16Which of the following is not one of the eight basic puzzles about financial structure?a)Stocks are the most important source of finance for American businesses.b)Issuing marketable securities is not the primary way businesses finance their operations.c)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.d)Banks are the most important source of external funds to finance businesses.17When people begin to expect a run up in large stock market, the demand curve for bonds shifts to the _____ and the interest rate _____.a)right; risesb)right; fallsc)left; fallsd)left; rises18With an interest rate of 6 percent, the present value of $100 next year is approximatelya)$106.b)$100.c)$94.d)$92.19The Fed uses three policy tools to manipulate the money supply: _____, which affect reserves and the monetary base; changes in _____, which affect reserves and the monetary base by influencing the quantity of discount loans; and changes in _____, which affect the money multiplier.a)open market operations; discount lending; margin requirementsb)open market operations; discount lending; reserve requirementsc)discount lending; open market operations; margin requirementsd)discount lending; open market operations; reserve requirements20The bond markets are important becausea)they are easily the most widely followed financial markets in the United States.b)they are the markets where foreign exchange rates are determined.c)they are the markets where interest rates are determined.d)of each of the above.PartⅡ. 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 If reserve requirement were elimininated, it would be harder to control interest rates.2 Higher stock prices means that consumers’ wealth is higher and so they will be more likely to decreasetheir spending.3 The income effect of an increase in the money supply is a rise in interest rates in response to the higher level of income.4 If bonds of different maturities are close substitutes, their interest rates are more likely to move together.5 The goal for high employment should seek an unemployment level of zero.6 The quantity demanded of an asset is negatively related to its liquidity relative to alternative assets.7 Foreign exchange rates, like stock prices, should follow a random walk.8 Given the return on assets, the higher the bank capital, the lower the return for the owners of the bank.9 Issuing marketable debt and equity securities is the primary way in which businesses finance their operations.10 The price of a coupon bond and the yield to maturity are negatively related.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 Fisher effect2 Risk premium3 Defensive open market operations4 Nonborrowed monetory basePartⅣ. 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 )1What factors determine a banks holdings of excess reserves? How does a change in each factor affect excess reserves, the money multiplier, and the money supply?2Explain three ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base?3Assume that a customer deposits $1000 in her bank. Show in a T-account the effect of this deposit. If the bank is subject to reserve requirements, show in a second T-account the banks balance sheet indicating required and excess reserve. In a third T-account, show the change in the bank’s balance sheet when the bank makes loans with the excess reserves.4Demonstrate graphically the effect of an increase in the personal savings rate. Show and explain the effect of increased savings on bond prices and interest rates. How would this change affect capital spending?5Explain 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?。