货币银行学第一，二章纸质练习姓名：班级：学号：1）Financial markets and institutions(a)involve the movement of huge flows of money.(b)affect the profits of businesses.(c)affect the types of goods and services produced in an economy.(d)do each of the above.(e)do only (a) and (b) of the above.Answer:D2）Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called(a)commodity markets.(b)fund-available markets.(c)derivative exchange markets.(d)financial markets.Answer:D3）Financial markets promote economic efficiency by(a)channeling funds from investors to savers.(b)creating inflation.(c)causing recessions.(d)channeling funds from savers to investors.(e)reducing investment.Answer:D4）The bond markets are important because(a)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.(e)of only (a) and (b) of the above.Answer:C5）Compared to interest rates on long-term U.S. government bonds, interest rates on _____ fluctuate more and are lower on average.(a)medium-quality corporate bonds(b)low-quality corporate bonds(c)high-quality corporate bonds(d)three-month Treasury bills(e)none of the aboveAnswer:D6）An increase in interest rates on student loans(a)increases the cost of a college education.(b)reduces the cost of a college education.(c)has no effect on educational costs.(d)increases costs for students with no loans.(e)none of the above.Answer:A7） A rising stock market index due to higher share prices(a)increases people’s wealth, but is unlikely to increase their willingness to spend.(b)increases people’s wealth and as a result may increase their willingness to spend.(c)increases the amount of funds that business firms can raise by selling newly-issuedstock.(d)both (b) and (c) of the above.Answer:D8）Everything else constant, a stronger dollar will mean that(a)vacationing in England becomes more expensive.(b)vacationing in England becomes less expensive.(c)French cheese becomes more expensive.(d)Japanese cars become more expensive.Answer:B9）In 1985 a Shetland sweater would have cost $130. With a weaker dollar, the same Shetland sweater would have cost(a)less than $130.(b)more than $130.(c)$130, since the exchange rate does not affect the prices that American consumers payfor foreign goods.(d)$130, since the demand for Shetland sweaters will decrease to prevent an increase inprice due to the stronger dollar.Answer:B10）Banks, savings and loan associations, mutual savings banks, and credit unions(a)link those who want to save with these who want to invest.(b)hold a large proportion of individuals’ wealth.(c)have been adept at innovating in response to changes in the regulatory environment.(d)all of the above.(e)only (a) and (c) of the above.Answer:D11）Money is defined as(a)anything that is generally accepted in payment for goods and services or in therepayment of debt.(b)bills of exchange.(c)a risk-free repository of spending power.(d)all of the above.(e)only (a) and (b) of the above.Answer:A12）Which of the following are true statements?(a)Money or the money supply is defined as Federal Reserve notes.(b)The average price of goods and services in an economy is called the aggregate pricelevel.(c)The inflation rate is measured as the rate of change in the federal government budgetdeficit.(d)All of the above are true statements.(e)Only (a) and (b) of the above are true statements.Answer:B13）Countries that experience very high rates of inflation have(a)balanced budgets.(b)budget surpluses.(c)falling money supplies.(d)constant money supplies.(e)rapidly growing money supplies.Answer:E14）Budgets deficits can be a concern because they might(a)ultimately lead to higher inflation.(b)lead to higher interest rates.(c)lead to a slower rate of money growth.(d)cause all of the above to occur.(e)cause both (a) and (b) of the above to occur.Answer:E15）Every financial market has the following characteristic:(a)It determines the level of interest rates.(b)It allows common stock to be traded.(c)It allows loans to be made.(d)It channels funds from lenders-savers to borrowers-spenders.Answer:D16）Which of the following can be described as direct finance?(a)You take out a mortgage from your local bank.(b)You borrow $2500 from a friend.(c)A pension fund lends money to General Motors.(d)You buy shares in a mutual fund.(e)None of the above.Answer:B17）Assume that you borrow $2000 at 10% annual interest to finance a new business project.For this loan to be profitable, the minimum amount this project must generate in annual earnings is(a)$400.(b)$201.(c)$200.(d)$199.(e)$101.Answer:B18）Which of the following can be described as involving indirect finance?(a)A corporation takes out loans from a bank.(b)People buy shares in a mutual fund.(c)A corporation buys a short-term corporate security in a secondary market.(d)All of the above.(e)Only (a) and (b) of the above.Answer:D19）Which of the following statements about the characteristics of debt and equity are true?(a)They can both be long-term financial instruments.(b)They both involve a claim on the issuer’s income.(c)They both enable a corporation to raise funds.(d)All of the above.(e)Only (a) and (b) of the above.Answer:D20）A corporation acquires new funds only when its securities are sold(a)in the secondary market by an investment bank.(b)in the primary market by an investment bank.(c)in the secondary market by a stock exchange broker.(d)in the secondary market by a commercial bank.Answer:B21）Which of the following statements about financial markets and securities are true?(a)Many common stocks are traded over-the-counter, although the largest corporationsusually have their shares traded at organized stock exchanges such as the New YorkStock Exchange.(b)A corporation acquires new funds only when its securities are first sold in theprimary market.(c)Money market securities are usually more widely traded than longer-term securitiesand so tend to be more liquid.(d)All of the above are true.(e)Only (a) and (b) of the above are true.Answer:D22）In the United States loans from _____ are far _____ important for corporate finance than are securities markets.(a)government agencies; more(b)government agencies; less(c)financial intermediaries; more(d)financial intermediaries; lessAnswer:C23）The presence of transaction costs in financial markets explains, in part, why(a)financial intermediaries and indirect finance play such an important role in financialmarkets.(b)equity and bond financing play such an important role in financial markets.(c)corporations get more funds through equity financing than they get from financialintermediaries.(d)direct financing is more important than indirect financing as a source of funds.Answer:A24）The problem created by asymmetric information before the transaction occurs is called _____, while the problem created after the transaction occurs is called _____.(a)adverse selection; moral hazard(b)moral hazard; adverse selection(c)costly state verification; free-riding(d)free-riding; costly state verificationAnswer:A25）Adverse selection is a problem associated with equity and debt contracts arising from(a)the lender’s relative lack of information about the borrower’s potential returns andrisks of his investment activities.(b)the lender’s inability to legally require sufficient collateral to cover a 100% loss if theborrower defaults.(c)the borrower’s lack of incentive to seek a loan for highly risky investments.(d)none of the above.Answer:A26）An example of the problem of ______ is when a corporation that uses the funds raised from selling new shares of stock to pay for Caribbean cruises for all of its employees and their families.(a)adverse selection(b)moral hazard(c)risk sharing(d)credit risk(e)prudential supervisionAnswer:B27）The primary source of funds of fire and casualty insurance companies include(a)commercial paper, stocks, and bonds.(b)premiums from policies.(c)savings deposits.(d)all of the above.Answer:B28）A goal of the Securities and Exchange Commission is to reduce problems arising from(a)competition.(b)banking panics.(c)risk.(d)asymmetric information.(e)all of the above.Answer:D29）The primary purpose of deposit insurance is to(a)improve the flow of information to investors.(b)prevent banking panics.(c)protect bank shareholders against losses.(d)protect bank employees from unemployment.(e)all of the above.Answer:B30）An important feature of money market mutual fund shares is(a)deposit insurance.(b)the ability to write checks against shareholdings.(c)the ability to borrow against shareholdings.(d)claims on shares of corporate stock.(e)all of the above.Answer:B。