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Вопрос 1Ответ открыт бесплатно
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called
1Commodity markets.
2Funds markets.
3Derivative exchange markets.
4Financial markets.✓ Правильный ответ
✓ Правильный ответ
Financial markets.
Вопрос 2
The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the
1Inflation rate.
2Exchange rate.
3Interest rate.
4Aggregate price level.
Вопрос 3
The bond markets are important because
1They are easily the most widely followed financial markets in the United States.
2They are the markets where interest rates are determined.
3They are the markets where foreign exchange rates are determined.
4They are traded in currency markets where foreign exchange rates are determined.
Вопрос 4
Interest rates are important to financial institutions since an interest rate increase ________ the cost of acquiring funds and ________ the income from assets.
1Decreases; decreases
2Increases; increases
3Decreases; increases
4Increases; decreases
Вопрос 5
Typically, increasing interest rates
1Discourages individuals from saving.
2Discourages corporate investments.
3Encourages corporate expansion.
4Encourages corporate borrowing.
Вопрос 6Ответ открыт бесплатно
Compared to interest rates on long-term U.S. government bonds, interest rates on ________ fluctuate more and are lower on average.
1medium-quality corporate bonds
2low-quality corporate bonds
3high-quality corporate bonds
4three-month Treasury bills✓ Правильный ответ
✓ Правильный ответ
three-month Treasury bills
Вопрос 7
Compared to interest rates on long-term U.S. government bonds, interest rates on three-month Treasury bills fluctuate ________ and are ________ on average.
1More; lower
2Less; lower
3More; higher
4Less; higher
Вопрос 8
Stock prices since the 1980s have been
1Relatively stable, trending upward at a steady pace.
2Relatively stable, trending downward at a moderate rate.
3Extremely volatile.
4Unstable, trending downward at a moderate rate.
Вопрос 9
The largest one-day drop in the history of the American stock markets occurred in
11929.
21987.
32000.
42001.
Вопрос 10Ответ открыт бесплатно
The price of one country's currency in terms of another's is called
1The foreign exchange rate.✓ Правильный ответ
2The interest rate.
3The Dow Jones industrial average.
4Rate of exchange fluctuations.
✓ Правильный ответ
The foreign exchange rate.
Вопрос 11
A stronger dollar benefits ________ and hurts ________.
1American businesses; American consumers
2American businesses; foreign businesses
3American consumers; American businesses
4foreign businesses; American consumers
Вопрос 12
A weaker dollar benefits ________ and hurts ________.
1American businesses; American consumers
2American businesses; foreign consumers
3American consumers; American businesses
4Foreign businesses; American consumers
Вопрос 13Ответ открыт бесплатно
Every financial market performs the following function:
1It determines the level of interest rates.
2It allows common stock to be traded.
3It allows loans to be made.
4It channels funds from lenders-savers to borrowers-spenders.✓ Правильный ответ
✓ Правильный ответ
It channels funds from lenders-savers to borrowers-spenders.
Вопрос 14
Securities are ________ for the person who buys them, but ________ for the individual/firm that sells them.
1Assets; liabilities
2Liabilities; assets
3Income; liabilities
4Liabilities; expenses
Вопрос 15
Which of the following can be described as involving direct finance?
1A corporation's stock is traded in an over-the-counter market.
2A corporation buys commercial paper issued by another corporation.
3A pension fund manager buys commercial paper from the issuing corporation.
4Commercial Paper will be issued.
Вопрос 16Ответ открыт бесплатно
A country whose financial markets function poorly is likely to
1Efficiently allocate its capital resources.
2Enjoy high productivity.
3Experience economic hardship and financial crises.✓ Правильный ответ
4Increase its standard of living.
✓ Правильный ответ
Experience economic hardship and financial crises.
Вопрос 17
Wealth, either financial or physical, that is employed to produce more wealth is referred to as
1Assets.
2The market.
3Capital.
4Funding.
Вопрос 18
The money market is the market in which ________ are traded.
1New issues of securities
2Previously issued securities
3Short-term debt instruments
4Long-term debt and equity instruments
Вопрос 19
A debt instrument is called ________ if its maturity is less than a year.
1Newly issued
2intermediate-term
3Short-term
4Long-term
Вопрос 20Ответ открыт бесплатно
A debt instrument is called ________ if its maturity is greater than 10 years.
1Perpetual
2intermediate-term
3Short-term
4Long-term✓ Правильный ответ
✓ Правильный ответ
Long-term
Вопрос 21
Security ________ link buyers and sellers by buying and selling securities at stated prices, while ________ are agents of investors who match buyers with sellers of securities.
1Brokers; dealers
2Brokers; agents
3Agents; dealers
4Dealers; brokers
Вопрос 22
Which of the following statements about financial markets and securities are true?
1Few common stocks are traded over-the-counter, although the over-the-counter markets have grown in recent years.
2A corporation acquires new funds only when its securities are sold in the primary market.
3Capital market securities are usually more widely traded than longer-term securities and so tend to be more liquid.
4Security Market is never consistent.
Вопрос 23Ответ открыт бесплатно
At the end of 2012, the value of debt instruments in the U.S. was around ________ trillion, and the value of equities was around ________ trillion.
1$38; $19✓ Правильный ответ
2$20; $10
3$19; $38
4$10; $20
✓ Правильный ответ
$38; $19
Вопрос 24
Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which they are sold are known as
1Foreign bonds.
2Eurobonds.
3Eurocurrencies.
4Eurodollars.
Вопрос 25
A loan that requires the borrower to make the same payment every period until the maturity date is called a
1Simple loan.
2fixed-payment loan.
3Discount loan.
4Same-payment loan.
Вопрос 26
A bond's future payments are called its
1Cash flows.
2Maturity values.
3Discounted present values.
4Yields to maturity.
Вопрос 27Ответ открыт бесплатно
A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a
1Simple loan.
2Fixed-payment loan.
3Coupon bond.
4Discount bond.✓ Правильный ответ
✓ Правильный ответ
Discount bond.
Вопрос 28
If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is
1$650.
2$1,300.
3$130.
4$13.
Вопрос 29
An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate of
15 percent.
28 percent.
310 percent.
440 percent.
Вопрос 30Ответ открыт бесплатно
The concept of ________ is based on the notion that a dollar paid to you in the future is less valuable to you than a dollar today.
1Present value✓ Правильный ответ
2Future value
3Interest
4Deflation
✓ Правильный ответ
Present value
Вопрос 31
Dollars received in the future are worth ________ than dollars received today. The process of calculating what dollars received in the future are worth today is called ________.
1More; discounting
2Less; discounting
3More; inflating
4Less; inflating
Вопрос 32
The process of calculating what dollars received in the future are worth today is called
1Calculating the yield to maturity.
2Discounting the future.
3Compounding the future.
4Compounding the present.
Вопрос 33Ответ открыт бесплатно
With an interest rate of 5 percent, the present value of $100 received one year from now is approximately
1$100.
2$105.
3$95.✓ Правильный ответ
4$90.
✓ Правильный ответ
$95.
Вопрос 34
With an interest rate of 10 percent, the present value of a security that pays $1,100 next year and $1,460 four years from now is approximately
1$1,000.
2$2,000.
3$2,560.
4$3,000.
Вопрос 35
With an interest rate of 8 percent, the present value of $100 received one year from now is approximately
1$93.
2$96.
3$100.
4$108.
Вопрос 36
As the price of a bond ________ and the expected return ________, bonds become more attractive to investors and the quantity demanded rises.
1Falls; rises
2Falls; falls
3Rises; rises
4Rises; falls
Вопрос 37Ответ открыт бесплатно
________ is the total resources owned by an individual, including all assets.
1Expected return
2Wealth✓ Правильный ответ
3Liquidity
4Risk
✓ Правильный ответ
Wealth
Вопрос 38
A ________ prefers stock in a less risky asset than in a riskier asset.
1risk preferrer
2risk-averse person
3risk lover
4risk-favorable person
Вопрос 39
The demand for an asset rises if ________ falls.
1Risk relative to other assets
2Expected return relative to other assets
3Liquidity relative to other assets
4Wealth
Вопрос 40Ответ открыт бесплатно
The higher the standard deviation of returns on an asset, the ________ the asset's ________.
1Greater; risk✓ Правильный ответ
2Smaller; risk
3Greater; expected return
4Smaller; expected return
✓ Правильный ответ
Greater; risk
Вопрос 41
In a recession when income and wealth are falling, the demand for bonds ________ and the demand curve shifts to the ________.
1Falls; right
2Falls; left
3Rises; right
4Rises; left
Вопрос 42
During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to the ________.
1Falls; right
2Falls; left
3Rises; right
4Rises; left
Вопрос 43
Higher expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________.
1Increase; left
2Increase; right
3Decrease; left
4Decrease; right
Вопрос 44Ответ открыт бесплатно
Lower expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________.
1Increase; left.
2Increase; right.✓ Правильный ответ
3Decrease; left.
4Decrease; right.
✓ Правильный ответ
Increase; right.
Вопрос 45
The supply curve for bonds has the usual upward slope, indicating that as the price ________, ceteris paribus, the ________ increases.
1Falls; supply
2Falls; quantity supplied
3Rises; supply
4Rises; quantity supplied
Вопрос 46
When the price of a bond is above the equilibrium price, there is excess ________ in the bond market and the price will ________.
1Demand; rise
2Demand; fall
3Supply; fall
4Supply; rise
Вопрос 47Ответ открыт бесплатно
When the price of a bond is below the equilibrium price, there is excess ________ in the bond market and the price will ________.
1Demand; rise✓ Правильный ответ
2Demand; fall
3Supply; fall
4Supply; rise
✓ Правильный ответ
Demand; rise
Вопрос 48
The risk structure of interest rates is
1The structure of how interest rates move over time.
2The relationship among interest rates of different bonds with the same maturity.
3The relationship among the terms to maturity of different bonds.
4The relationship among interest rates on bonds with different maturities.
Вопрос 49
Which of the following long-term bonds should have the lowest interest rate?
1Corporate Baa bonds
2U.S. Treasury bonds
3Corporate Aaa bonds
4Municipal bonds
Вопрос 50Ответ открыт бесплатно
Which of the following long-term bonds should have the highest interest rate?
1Corporate Baa bonds✓ Правильный ответ
2U.S. Treasury bonds
3Corporate Aaa bonds
4Municipal bonds
✓ Правильный ответ
Corporate Baa bonds
Вопрос 51
Bonds with relatively low risk of default are called
1Zero coupon bonds.
2Junk bonds.
3investment-grade bonds.
4Shares and / debentures
Вопрос 52
Bonds with relatively high risk of default are called
1Brady bonds.
2Junk bonds.
3Zero coupon bonds.
4investment-grade bonds.
Вопрос 53
Between 1919 and 2016, when did long-term bond yields peak?
1Around 1945
2Early 1980s
3Around 1960
41925
Вопрос 54Ответ открыт бесплатно
Between 1919 and 1990, when did long-term bond yields reach a low point?
1Around 1945✓ Правильный ответ
2Early 1980s
3Around 1960
41925
✓ Правильный ответ
Around 1945
Вопрос 55
A corporation suffering big losses might be more likely to suspend interest payments on its bonds, thereby
1Raising the default risk and causing the demand for its bonds to rise.
2Raising the default risk and causing the demand for its bonds to fall.
3Lowering the default risk and causing the demand for its bonds to rise.
4Lowering the default risk and causing the demand for its bonds to fall.
Вопрос 56
Holding everything else constant, if a corporation begins to suffer large losses, then the default risk on its bonds will ________ and the expected return on those bonds will ________.
1Increase; increase
2Decrease; increase
3Increase; decrease
4Decrease; decrease
Вопрос 57Ответ открыт бесплатно
Holding everything else the same, if a corporation's earnings rise, then the default risk on its bonds will ________ and the expected return on those bonds will ________.
1Increase; decrease
2Decrease; decrease
3Increase; increase
4Decrease; increase✓ Правильный ответ
✓ Правильный ответ
Decrease; increase
Вопрос 58
If a corporation begins to suffer large losses, then the default risk on its bonds will ________ and the equilibrium interest rate on these bonds will ________
1Increase; decrease
2Decrease; increase
3Increase; increase
4Decrease; decrease
Вопрос 59
If a corporation's earnings rise, then the default risk on its bonds will ________ and the equilibrium interest rate on these bonds will ________
1Increase; decrease
2Decrease; decrease
3Increase; increase
4Decrease; increase
Вопрос 60
According to the efficient market hypothesis, the current price of a financial security
1Is the discounted net present value of future interest payments?
2Is determined by the highest successful bidder.
3Fully reflects all available relevant information.
4Is determined by the lowest successful bidder
Вопрос 61Ответ открыт бесплатно
Current prices in a financial market will be set so that the optimal forecast of a security's return using all available information ________ the security's equilibrium return.
1Is less than
2is greater than
3Equals✓ Правильный ответ
4Is unrelated to
✓ Правильный ответ
Equals
Вопрос 62
New information reveals that a stock's price will be $150 in one year. If the stock pays no dividends, and the required return is 10%, what does the efficient market hypothesis indicate the price will be today?
1$130.33
2$136.36
3$142.59
4$145.00
Вопрос 63
Another way to state the efficient market condition is that in an efficient market,
1Unexploited profit opportunities will be quickly eliminated.
2Unexploited profit opportunities will never exist.
3Arbitrageurs guarantee that unexploited profit opportunities never exist.
4Unexploited profit opportunities will be slowly eliminated
Вопрос 64Ответ открыт бесплатно
Another way to state the efficient market hypothesis is that in an efficient market,
1Unexploited profit opportunities will never exist as market participants, such as arbitrageurs, ensure that they are instantaneously dissipated.
2Unexploited profit opportunities will not exist for long, as market participants will act quickly to eliminate them.✓ Правильный ответ
3Every financial market participant must be well informed about securities.
4No financial market participant must be well informed about securities
✓ Правильный ответ
Unexploited profit opportunities will not exist for long, as market participants will act quickly to eliminate them.
Вопрос 65
The elimination of a riskless profit opportunity in a market is called
1The efficient market hypothesis.
2Random walk.
3Arbitrage.
4Market fundamentals.
Вопрос 66
A situation in which the price of an asset differs from its fundamental market value is called
1an unexploited profit opportunity.
2a bubble.
3a correction.
4a mean reversion.
Вопрос 67Ответ открыт бесплатно
A situation in which the price of an asset differs from its fundamental market value
1Indicates that unexploited profit opportunities exist.
2Indicates that unexploited profit opportunities do not exist.
3Need not indicate that unexploited profit opportunities exist.✓ Правильный ответ
4Indicates that the efficient market hypothesis is fundamentally flawed.
✓ Правильный ответ
Need not indicate that unexploited profit opportunities exist.
Вопрос 68
Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period
1Usually beat the market in the next time period.
2Usually beat the market in the next two subsequent time periods.
3Usually beat the market in the next three subsequent time periods.
4Usually do not beat the market in the next time period.
Вопрос 69
The efficient market hypothesis suggests that allocating your funds in the financial markets on the advice of a financial analyst
1Will certainly mean higher returns than if you had made selections by throwing darts at the financial page.
2Will always mean lower returns than if you had made selections by throwing darts at the financial page.
3is not likely to prove superior to a strategy of making selections by throwing darts at the financial page.
4is good for the economy.
Вопрос 70
Raj Rajaratnam, a successful investor in the 2000s who consistently beat the market, was able to outperform the market on a consistent basis, indicating that
1Securities markets are not efficient.
2Unexploited profit opportunities were abundant.
3Investors can outperform the market with inside information.
4Investors can outperform the market with external information.
Вопрос 71Ответ открыт бесплатно
Which of the following does not weaken the efficient markets hypothesis?
1Mean reversion
2Success of buy-and-hold strategy✓ Правильный ответ
3January effect
4Excessive volatility
✓ Правильный ответ
Success of buy-and-hold strategy
Вопрос 72
Of the following sources of external finance for American nonfinancial businesses, the least important is
1Loans from banks.
2Stocks.
3Bonds and commercial paper.
4Nonbank loans.
Вопрос 73
Of the following sources of external finance for American nonfinancial businesses, the most important is
1Loans from banks.
2Stocks.
3Bonds and commercial paper.
4Nonbank loans.
Вопрос 74Ответ открыт бесплатно
Of the sources of external funds for nonfinancial businesses in the United States, bonds account for approximately ________ of the total.
110%
220%
330%✓ Правильный ответ
450%
✓ Правильный ответ
30%
Вопрос 75
Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total.
110%
220%
330%
440%
Вопрос 76
Which of the following is not one of the eight basic facts about financial structure?
1Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrower.
2Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance in which businesses raise funds directly from lenders in financial markets.
3Collateral is a prevalent feature of debt contracts for both households and businesses.
4New security issues are the most important source of external funds to finance businesses.
Вопрос 77
Which of the following is not one of the eight basic facts about financial structure?
1The financial system is among the most heavily regulated sectors of the economy.
2Issuing marketable securities is the primary way businesses finance their operations.
3Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance in which businesses raise funds directly from lenders in financial markets.
4Financial intermediaries are the most important source of external funds to finance businesses.
Вопрос 78Ответ открыт бесплатно
The majority of household debt in the United States consists of
1Credit card debt.
2Consumer installment debt.
3Collateralized loans.✓ Правильный ответ
4Unsecured loans, such as student loans.
✓ Правильный ответ
Collateralized loans.
Вопрос 79
Commercial and farm mortgages, in which property is pledged as collateral, account for
1One-quarter of borrowing by nonfinancial businesses.
2One-half of borrowing by nonfinancial businesses.
3One-twentieth of borrowing by nonfinancial businesses.
4Two-thirds of borrowing by nonfinancial businesses.
Вопрос 80
Which of the following best explains the recent decline in the role of financial intermediaries?
1Private production of information
2Government regulation to increase information
3Improvements in information technology
4Private sale of information
Вопрос 81Ответ открыт бесплатно
Liquidity services are services that
1Make it easier for customers to conduct transactions.✓ Правильный ответ
2Conducts transactions for the customer.
3Increase transaction costs.
4Decrease transaction costs.
✓ Правильный ответ
Make it easier for customers to conduct transactions.
Вопрос 82
A financial institution can achieve cost savings by engaging in multiple activities. These are called economies of
1Scope.
2Scale.
3Complexity.
4Information.
Вопрос 83
A financial institution can achieve cost savings in its credit card operations if it increases the number of cardholders. This is an example of economies of
1Scope.
2Scale.
3Complexity.
4Information.
Вопрос 84Ответ открыт бесплатно
What is a credit boom?
1An explosion in a credit cycle, which can increase or decrease lending in the short-run
2Essentially a lending spree on the part of banks and other financial institutions✓ Правильный ответ
3When credit card receivables rise due to low initial interest rates
4The signal of the end of a credit spree, with credit contracting rapidly
✓ Правильный ответ
Essentially a lending spree on the part of banks and other financial institutions
Вопрос 85
During the 1800s, many U.S. financial crises were precipitated by an increase in ________, often originating in London.
1Interest rates
2Housing prices
3Gasoline prices
4Heating oil prices
Вопрос 86
Stage Two of a financial crisis in an advanced economy usually involves a ________ crisis.
1Currency
2Stock market
3Banking
4Commodities
Вопрос 87
Stage Three of a financial crisis in an advanced economy features
1A general increase in inflation.
2Debt deflation.
3An increase in general price levels.
4A full-fledged financial crisis.
Вопрос 88Ответ открыт бесплатно
Debt deflation refers to
1An increase in net worth, leading to a relative fall in general debt levels.
2A decline in general debt levels due to deleveraging.
3A decline in bond prices as default rates rise.
4A decline in net worth as price levels fall while debt burden remains unchanged.✓ Правильный ответ
✓ Правильный ответ
A decline in net worth as price levels fall while debt burden remains unchanged.
Вопрос 89
In 1928 and the first half of 1929, prices ________ in the U.S. stock market.
1Doubled
2Dropped by 50%
3Fell 15%
4Tripled
Вопрос 90
From its peak in 1929 to the trough in December 1932, the Dow Jones Industrial Average fell how much?
180%
290%
370%
460%
Вопрос 91Ответ открыт бесплатно
The Baa-U.S. Treasury spread was about 2% at the beginning of 1929. By December 1932, the Dow Jones Industrial Average reached a low, and the spread had increased to how much?
14%
26%
38%✓ Правильный ответ
410%
✓ Правильный ответ
8%
Вопрос 92
In addition to having a direct effect on increasing adverse selection problems, increases in interest rates also promote financial crises by ________ firms' and households' interest payments, thereby ________ their cash flow.
1increasing; increasing
2increasing; decreasing
3decreasing; increasing
4decreasing; decreasing
Вопрос 93
What is a collateralized debt obligation?
1A tranche of an SPV that has been setup based on default risk
2An agreement to exchange interest payments when one party defaults
3A type of insurance against defaults
4A contract between credit rating agencies
Вопрос 94
Approximately how large was the U.S. subprime mortgage market in 2007?
1$100 million
2$100 billion
3$500 billion
4$1 trillion
Вопрос 95Ответ открыт бесплатно
Leading up to the 2007-2009 Financial Crisis, the ________ process, along with computer technology, enabled the bundling of smaller loans (like mortgages) into standard debt securities.
1liberalization
2securitization✓ Правильный ответ
3easing
4investment banking
✓ Правильный ответ
securitization
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