Exam
Name___________________________________
MULTIPLE CHOICE. Choo the one alternative that best completes the statement or answers the question.
离合器打滑1) Everything el held constant, when prices in the art market become more uncertain, 1) _______
A) the demand curve for bonds shifts to the right and the interest rate falls.
B) the supply curve for bonds shifts to the right and the interest rate falls.
C) the demand curve for bonds shifts to the left and the interest rate ris.
D) the demand curve for bonds shifts to the left and the interest rate falls.
性情什么意思2) Which of the following $1,000 faceusually怎么读-value curities has the highest yield to maturity? 2) _______
A) A 5 percent coupon bond lling for $1,000
B) A 10 percent coupon bond lling for $1,000
英语听力下载C) A 12 percent coupon bond lling for $1,100
武汉日语培训D) A 12 percent coupon bond lling for $1,000
3) The recent Enron and Tyco scandals are an example of 3) _______
A) the principal-agent problem. B) the adver lection problem.
C) the "lemons problem." D) the free-rider problem.
4) A change in perceived risk of a stock changes 4) _______
A) the expected dividend growth rate. B) the expected sales price.
C) the current dividend. D) the required rate of return.acne
5) ________ policy involves decisions about government spending and taxation. 5) _______
A) Systemic B) Financial C) Fiscal D) Monetary
6) The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond, and investors have no preference for short-term bonds relative to long-term bonds. 6) _______
A) liquidity premium theory B) gmented markets theory
C) parable markets theory D) expectations theory
7) The ________ problem helps to explain why the private production and sale of information cannot eliminate ________. 7) _______
A) free-rider; moral hazard B) free-rider; adver lection
C) principal-agent; adver lection D) principal-agent; moral hazard
8) If the interest rate on a bond is below the equilibrium interest rate, there is an excess ________ of bonds and the bond price will ________. 8) _______
A) supply; ri B) demand; ri C) demand; fall D) supply; fall
9) Government regulations require publicly traded firms to provide information, reducing 9) _______
A) transactions costs. B) the need for diversification.
C) the adver lection problem. D) economies of scale.
10) Becau of their ________ liquidity, ________ U.S. government curities are called condary rerves. 10) ______
A) low; short-term B) low; long-term
C) high; short-term D) high; long-term
11) A discount bond 11) ______
A) pays the bondholder the face value at maturity.
B) pays the face value at maturity plus any capital gain.
C) pays all interest and the face value at maturity.
D) pays the bondholder a fixed amount every period and the face value at maturity.
12) As a source of funds for nonfinancial business, stocks are relatively more important in 12) ______
A) Japan. B) the United States.
C) Canada. D) Germany.
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13) Although the dominance of ________ over ________ is clear in all countries, the relative importance of bond versus stock markets differs widely. 13) ______
A) financial intermediaries; curities markets
B) government agencies; curities markets
C) financial intermediaries; government agencies
D) government agencies; financial intermediaries
14) When short-term interest rates are expected to fall sharply in the future, the yield curve will 14) ______
A) be an inverted U shape. B) be inverted.
leatherC) slope up. D) be flat.
15) The higher a curity's price in the condary market the ________ funds a firm can rai by lling curities in the ________ market. 15) ______
A) more; condary B) more; primary
C) less; condary D) less; primary
16) Banks earn profits by lling ________ with attractive combinations of liquidity, risk, and return, and using the proceeds to buy ________ with a different t of characteristics. 16) ______
一条宠物狗掉进粪坑A) curities; deposits B) asts; liabilities
C) liabilities; asts D) loans; deposits
17) Net profit after taxes per dollar of asts is a basic measure of bank profitability called 17) ______
A) return on equity. B) return on asts.
