1Chapter 9
The Money Markets
1 Multiple Choice Questions
1. Activity in money markets incread significantly in the late 1970s and early 1980s becau of
(a) rising short-term interest rates.
(b) regulations that limited what banks could pay for deposits.
(c) both (a) and (b).
(d) neither (a) nor (b).
Answer: C
羽毛球裁判
2. Money market curities have all the following characteristics except they are not
(a) short term.
(b) money.
(c) low risk.
(d) very liquid.
Answer: B
3. Money market instruments
(a) are usually sold in large denominations.
(b) have low default risk.
(c) mature in one year or less.
(d) are characterized by all of the above.
(e) are characterized by only (a) and (b) of the above.
Answer: D
4. The banking industry有时候
(a) should have an efficiency advantage in gathering information that would eliminate the need for the money markets.
(b) exists primarily to mediate the asymmetric information problem between saver-lenders and borrower-spenders.
发芽的蒜头还能吃吗
(c) is subject to more regulations and governmental costs than are the money markets.
(d) all of the above are true.快乐环岛
(e) only (a) and (b) of the above are true.
Answer: D
5. In situations where asymmetric information problems are not vere,
(a) the money markets have a distinct cost advantage over banks in providing short-term funds.
(b) the money markets have a distinct cost advantage over banks in providing long-term funds.
(c) banks have a distinct cost advantage over the money markets in providing short-term funds.
(d) the money markets cannot allocate short-term funds as efficiently as banks can.
Answer: A
6. Brokerage firms that offered money market curity accounts in the 1970s had a cost advantage over banks in attracting funds becau the brokerage firms
(a) were not subject to deposit rerve requirements.
(b) were not subject to the deposit interest rate ceilings.
教育考试院(c) were not limited in how much they could borrow from depositors.
(d) had the advantage of all the above.
(e) had the advantage of only (a) and (b) of the above.
Answer: E
7. Which of the following statements about the money market are true?
农产品质量与安全(a) Not all commercial banks deal for their customers in the condary market.
(b) Money markets are ud extensively by business both to warehou surplus funds and to rai short-term funds.
(c) The single most influential participant in the U.S. money market is the U.S. Treasury Department.
(d) All of the above are true.
(e) Only (a) and (b) of the above are true.
Answer: E
8. Which of the following statements about the money markets are true?
(a) Most money market curities do not pay interest. Instead the investor pays less for the curity than it will be worth when it matures.
(b) Pension funds invest a portion of their asts in the money market to have sufficient liquidity to meet their obligations.
(c) Unlike most participants in the money market, the U.S. Treasury Department is always a demander of money market funds and never a supplier.
(d) All of the above are true.红苕饼
(e) Only (a) and (b) of the above are true.
Answer: D
9. Which of the following are true statements about participants in the money markets?
(a) Large banks participate in the money markets by lling large negotiable CDs.
(b) The U.S. government and corporations borrow in the money markets becau cash inflows and outflows are rarely synchronized.
(c) The Federal Rerve is the single most influential participant in the U.S. money market.
(d) All of the above are true.
(e) Only (a) and (b) of the above are true.
Answer: D
10. The most influential participant(s) in the U.S. money market
(a) is the Federal Rerve.
(b) is the U.S. Treasury Department.
(c) are the large money center banks.
(d) are the investment banks that underwrite curities.
Answer: A
11. The Fed is an active participant in money markets mainly becau of its responsibility to
(a) lower borrowing costs to encourage capital investment.
(b) control the money supply.
(c) increa the interest income of retirees holding money market instruments.
(d) assist the Securities and Exchange Commission in regulating the behavior other money market participants.
可爱正文
Answer: B
12. Commercial banks are large holders of _________ and are the major issuer of _________.
(a) negotiable certificates of deposit; U.S. government curities
(b) U.S. government curities; negotiable certificates of deposit
