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Investment Strategies on Different Financial Markets.d

Investment Strategies on Different Financial Markets.d

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95 вопросов Вариант 1 Доступ 7 дней
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Вопросы и варианты

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Вопрос 1

Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called

  1. Commodity markets.
  2. Funds markets.
  3. Derivative exchange markets.
  4. 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

  1. Inflation rate.
  2. Exchange rate.
  3. Interest rate.
  4. Aggregate price level.
Вопрос 3

The bond markets are important because

  1. They are easily the most widely followed financial markets in the United States.
  2. They are the markets where interest rates are determined.
  3. They are the markets where foreign exchange rates are determined.
  4. They 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.

  1. Decreases; decreases
  2. Increases; increases
  3. Decreases; increases
  4. Increases; decreases
Вопрос 5

Typically, increasing interest rates

  1. Discourages individuals from saving.
  2. Discourages corporate investments.
  3. Encourages corporate expansion.
  4. Encourages corporate borrowing.
Вопрос 6

Compared to interest rates on long-term U.S. government bonds, interest rates on ________ fluctuate more and are lower on average.

  1. medium-quality corporate bonds
  2. low-quality corporate bonds
  3. high-quality corporate bonds
  4. 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.

  1. More; lower
  2. Less; lower
  3. More; higher
  4. Less; higher
Вопрос 8

Stock prices since the 1980s have been

  1. Relatively stable, trending upward at a steady pace.
  2. Relatively stable, trending downward at a moderate rate.
  3. Extremely volatile.
  4. Unstable, trending downward at a moderate rate.
Вопрос 9

The largest one-day drop in the history of the American stock markets occurred in

  1. 1929.
  2. 1987.
  3. 2000.
  4. 2001.
Вопрос 10

The price of one country's currency in terms of another's is called

  1. The foreign exchange rate.
  2. The interest rate.
  3. The Dow Jones industrial average.
  4. Rate of exchange fluctuations.
Вопрос 11

A stronger dollar benefits ________ and hurts ________.

  1. American businesses; American consumers
  2. American businesses; foreign businesses
  3. American consumers; American businesses
  4. foreign businesses; American consumers
Вопрос 12

A weaker dollar benefits ________ and hurts ________.

  1. American businesses; American consumers
  2. American businesses; foreign consumers
  3. American consumers; American businesses
  4. Foreign businesses; American consumers
Вопрос 13

Every financial market performs the following function:

  1. It determines the level of interest rates.
  2. It allows common stock to be traded.
  3. It allows loans to be made.
  4. 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.

  1. Assets; liabilities
  2. Liabilities; assets
  3. Income; liabilities
  4. Liabilities; expenses
Вопрос 15

Which of the following can be described as involving direct finance?

  1. A corporation's stock is traded in an over-the-counter market.
  2. A corporation buys commercial paper issued by another corporation.
  3. A pension fund manager buys commercial paper from the issuing corporation.
  4. Commercial Paper will be issued.
Вопрос 16

A country whose financial markets function poorly is likely to

  1. Efficiently allocate its capital resources.
  2. Enjoy high productivity.
  3. Experience economic hardship and financial crises.
  4. Increase its standard of living.
Вопрос 17

Wealth, either financial or physical, that is employed to produce more wealth is referred to as

  1. Assets.
  2. The market.
  3. Capital.
  4. Funding.
Вопрос 18

The money market is the market in which ________ are traded.

  1. New issues of securities
  2. Previously issued securities
  3. Short-term debt instruments
  4. Long-term debt and equity instruments
Вопрос 19

A debt instrument is called ________ if its maturity is less than a year.

  1. Newly issued
  2. intermediate-term
  3. Short-term
  4. Long-term
Вопрос 20

A debt instrument is called ________ if its maturity is greater than 10 years.

  1. Perpetual
  2. intermediate-term
  3. Short-term
  4. 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.

  1. Brokers; dealers
  2. Brokers; agents
  3. Agents; dealers
  4. Dealers; brokers
Вопрос 22

Which of the following statements about financial markets and securities are true?

  1. Few common stocks are traded over-the-counter, although the over-the-counter markets have grown in recent years.
  2. A corporation acquires new funds only when its securities are sold in the primary market.
  3. Capital market securities are usually more widely traded than longer-term securities and so tend to be more liquid.
  4. Security Market is never consistent.
Вопрос 23

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
  2. $20; $10
  3. $19; $38
  4. $10; $20
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

  1. Foreign bonds.
  2. Eurobonds.
  3. Eurocurrencies.
  4. Eurodollars.
Вопрос 25

A loan that requires the borrower to make the same payment every period until the maturity date is called a

  1. Simple loan.
  2. fixed-payment loan.
  3. Discount loan.
  4. Same-payment loan.
Вопрос 26

A bond's future payments are called its

  1. Cash flows.
  2. Maturity values.
  3. Discounted present values.
  4. Yields to maturity.
Вопрос 27

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

  1. Simple loan.
  2. Fixed-payment loan.
  3. Coupon bond.
  4. 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

  1. 5 percent.
  2. 8 percent.
  3. 10 percent.
  4. 40 percent.
Вопрос 30

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.

  1. Present value
  2. Future value
  3. Interest
  4. Deflation
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 ________.

  1. More; discounting
  2. Less; discounting
  3. More; inflating
  4. Less; inflating
Вопрос 32

The process of calculating what dollars received in the future are worth today is called

  1. Calculating the yield to maturity.
  2. Discounting the future.
  3. Compounding the future.
  4. Compounding the present.
Вопрос 33

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.
  4. $90.
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.

  1. Falls; rises
  2. Falls; falls
  3. Rises; rises
  4. Rises; falls
Вопрос 37

________ is the total resources owned by an individual, including all assets.

  1. Expected return
  2. Wealth
  3. Liquidity
  4. Risk
Вопрос 38

A ________ prefers stock in a less risky asset than in a riskier asset.

  1. risk preferrer
  2. risk-averse person
  3. risk lover
  4. risk-favorable person
Вопрос 39

The demand for an asset rises if ________ falls.

  1. Risk relative to other assets
  2. Expected return relative to other assets
  3. Liquidity relative to other assets
  4. Wealth
Вопрос 40

The higher the standard deviation of returns on an asset, the ________ the asset's ________.

  1. Greater; risk
  2. Smaller; risk
  3. Greater; expected return
  4. Smaller; expected return
Вопрос 41

In a recession when income and wealth are falling, the demand for bonds ________ and the demand curve shifts to the ________.

  1. Falls; right
  2. Falls; left
  3. Rises; right
  4. Rises; left
Вопрос 42

During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to the ________.

  1. Falls; right
  2. Falls; left
  3. Rises; right
  4. Rises; left
Вопрос 43

Higher expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________.

  1. Increase; left
  2. Increase; right
  3. Decrease; left
  4. Decrease; right
Вопрос 44

Lower expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________.

  1. Increase; left.
  2. Increase; right.
  3. Decrease; left.
  4. Decrease; right.
Вопрос 45

The supply curve for bonds has the usual upward slope, indicating that as the price ________, ceteris paribus, the ________ increases.

  1. Falls; supply
  2. Falls; quantity supplied
  3. Rises; supply
  4. Rises; 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 ________.

  1. Demand; rise
  2. Demand; fall
  3. Supply; fall
  4. Supply; rise
Вопрос 47

When the price of a bond is below the equilibrium price, there is excess ________ in the bond market and the price will ________.

  1. Demand; rise
  2. Demand; fall
  3. Supply; fall
  4. Supply; rise
Вопрос 48

The risk structure of interest rates is

  1. The structure of how interest rates move over time.
  2. The relationship among interest rates of different bonds with the same maturity.
  3. The relationship among the terms to maturity of different bonds.
  4. The relationship among interest rates on bonds with different maturities.
Вопрос 49

Which of the following long-term bonds should have the lowest interest rate?

  1. Corporate Baa bonds
  2. U.S. Treasury bonds
  3. Corporate Aaa bonds
  4. Municipal bonds
Вопрос 50

Which of the following long-term bonds should have the highest interest rate?

  1. Corporate Baa bonds
  2. U.S. Treasury bonds
  3. Corporate Aaa bonds
  4. Municipal bonds
Вопрос 51

Bonds with relatively low risk of default are called

  1. Zero coupon bonds.
  2. Junk bonds.
  3. investment-grade bonds.
  4. Shares and / debentures
Вопрос 52

Bonds with relatively high risk of default are called

  1. Brady bonds.
  2. Junk bonds.
  3. Zero coupon bonds.
  4. investment-grade bonds.
Вопрос 53

Between 1919 and 2016, when did long-term bond yields peak?

  1. Around 1945
  2. Early 1980s
  3. Around 1960
  4. 1925
Вопрос 54

Between 1919 and 1990, when did long-term bond yields reach a low point?

  1. Around 1945
  2. Early 1980s
  3. Around 1960
  4. 1925
Вопрос 55

A corporation suffering big losses might be more likely to suspend interest payments on its bonds, thereby

  1. Raising the default risk and causing the demand for its bonds to rise.
  2. Raising the default risk and causing the demand for its bonds to fall.
  3. Lowering the default risk and causing the demand for its bonds to rise.
  4. Lowering 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 ________.

  1. Increase; increase
  2. Decrease; increase
  3. Increase; decrease
  4. Decrease; decrease
Вопрос 57

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 ________.

  1. Increase; decrease
  2. Decrease; decrease
  3. Increase; increase
  4. 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 ________

  1. Increase; decrease
  2. Decrease; increase
  3. Increase; increase
  4. Decrease; 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 ________

  1. Increase; decrease
  2. Decrease; decrease
  3. Increase; increase
  4. Decrease; increase
Вопрос 60

According to the efficient market hypothesis, the current price of a financial security

  1. Is the discounted net present value of future interest payments?
  2. Is determined by the highest successful bidder.
  3. Fully reflects all available relevant information.
  4. Is determined by the lowest successful bidder
Вопрос 61

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.

  1. Is less than
  2. is greater than
  3. Equals
  4. Is unrelated to
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,

  1. Unexploited profit opportunities will be quickly eliminated.
  2. Unexploited profit opportunities will never exist.
  3. Arbitrageurs guarantee that unexploited profit opportunities never exist.
  4. Unexploited profit opportunities will be slowly eliminated
Вопрос 64

Another way to state the efficient market hypothesis is that in an efficient market,

  1. Unexploited profit opportunities will never exist as market participants, such as arbitrageurs, ensure that they are instantaneously dissipated.
  2. Unexploited profit opportunities will not exist for long, as market participants will act quickly to eliminate them.
  3. Every financial market participant must be well informed about securities.
  4. No financial market participant must be well informed about securities
Вопрос 65

The elimination of a riskless profit opportunity in a market is called

  1. The efficient market hypothesis.
  2. Random walk.
  3. Arbitrage.
  4. Market fundamentals.
Вопрос 66

A situation in which the price of an asset differs from its fundamental market value is called

  1. an unexploited profit opportunity.
  2. a bubble.
  3. a correction.
  4. a mean reversion.
Вопрос 67

A situation in which the price of an asset differs from its fundamental market value

  1. Indicates that unexploited profit opportunities exist.
  2. Indicates that unexploited profit opportunities do not exist.
  3. Need not indicate that unexploited profit opportunities exist.
  4. Indicates that the efficient market hypothesis is fundamentally flawed.
Вопрос 68

Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period

  1. Usually beat the market in the next time period.
  2. Usually beat the market in the next two subsequent time periods.
  3. Usually beat the market in the next three subsequent time periods.
  4. Usually 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

  1. Will certainly mean higher returns than if you had made selections by throwing darts at the financial page.
  2. Will always mean lower returns than if you had made selections by throwing darts at the financial page.
  3. is not likely to prove superior to a strategy of making selections by throwing darts at the financial page.
  4. is 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

  1. Securities markets are not efficient.
  2. Unexploited profit opportunities were abundant.
  3. Investors can outperform the market with inside information.
  4. Investors can outperform the market with external information.
Вопрос 71

Which of the following does not weaken the efficient markets hypothesis?

  1. Mean reversion
  2. Success of buy-and-hold strategy
  3. January effect
  4. Excessive volatility
Вопрос 72

Of the following sources of external finance for American nonfinancial businesses, the least important is

  1. Loans from banks.
  2. Stocks.
  3. Bonds and commercial paper.
  4. Nonbank loans.
Вопрос 73

Of the following sources of external finance for American nonfinancial businesses, the most important is

  1. Loans from banks.
  2. Stocks.
  3. Bonds and commercial paper.
  4. Nonbank loans.
Вопрос 74

Of the sources of external funds for nonfinancial businesses in the United States, bonds account for approximately ________ of the total.

  1. 10%
  2. 20%
  3. 30%
  4. 50%
Вопрос 75

Of the sources of external funds for nonfinancial businesses in the United States, stocks account for approximately ________ of the total.

  1. 10%
  2. 20%
  3. 30%
  4. 40%
Вопрос 76

Which of the following is not one of the eight basic facts about financial structure?

  1. Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrower.
  2. Indirect 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.
  3. Collateral is a prevalent feature of debt contracts for both households and businesses.
  4. New 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?

  1. The financial system is among the most heavily regulated sectors of the economy.
  2. Issuing marketable securities is the primary way businesses finance their operations.
  3. Indirect 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.
  4. Financial intermediaries are the most important source of external funds to finance businesses.
Вопрос 78

The majority of household debt in the United States consists of

  1. Credit card debt.
  2. Consumer installment debt.
  3. Collateralized loans.
  4. Unsecured loans, such as student loans.
Вопрос 79

Commercial and farm mortgages, in which property is pledged as collateral, account for

  1. One-quarter of borrowing by nonfinancial businesses.
  2. One-half of borrowing by nonfinancial businesses.
  3. One-twentieth of borrowing by nonfinancial businesses.
  4. Two-thirds of borrowing by nonfinancial businesses.
Вопрос 80

Which of the following best explains the recent decline in the role of financial intermediaries?

  1. Private production of information
  2. Government regulation to increase information
  3. Improvements in information technology
  4. Private sale of information
Вопрос 81

Liquidity services are services that

  1. Make it easier for customers to conduct transactions.
  2. Conducts transactions for the customer.
  3. Increase transaction costs.
  4. Decrease transaction costs.
Вопрос 82

A financial institution can achieve cost savings by engaging in multiple activities. These are called economies of

  1. Scope.
  2. Scale.
  3. Complexity.
  4. Information.
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

  1. Scope.
  2. Scale.
  3. Complexity.
  4. Information.
Вопрос 84

What is a credit boom?

  1. An explosion in a credit cycle, which can increase or decrease lending in the short-run
  2. Essentially a lending spree on the part of banks and other financial institutions
  3. When credit card receivables rise due to low initial interest rates
  4. The signal of the end of a credit spree, with credit contracting rapidly
Вопрос 85

During the 1800s, many U.S. financial crises were precipitated by an increase in ________, often originating in London.

  1. Interest rates
  2. Housing prices
  3. Gasoline prices
  4. Heating oil prices
Вопрос 86

Stage Two of a financial crisis in an advanced economy usually involves a ________ crisis.

  1. Currency
  2. Stock market
  3. Banking
  4. Commodities
Вопрос 87

Stage Three of a financial crisis in an advanced economy features

  1. A general increase in inflation.
  2. Debt deflation.
  3. An increase in general price levels.
  4. A full-fledged financial crisis.
Вопрос 88

Debt deflation refers to

  1. An increase in net worth, leading to a relative fall in general debt levels.
  2. A decline in general debt levels due to deleveraging.
  3. A decline in bond prices as default rates rise.
  4. 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.

  1. Doubled
  2. Dropped by 50%
  3. Fell 15%
  4. Tripled
Вопрос 90

From its peak in 1929 to the trough in December 1932, the Dow Jones Industrial Average fell how much?

  1. 80%
  2. 90%
  3. 70%
  4. 60%
Вопрос 91

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?

  1. 4%
  2. 6%
  3. 8%
  4. 10%
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.

  1. increasing; increasing
  2. increasing; decreasing
  3. decreasing; increasing
  4. decreasing; decreasing
Вопрос 93

What is a collateralized debt obligation?

  1. A tranche of an SPV that has been setup based on default risk
  2. An agreement to exchange interest payments when one party defaults
  3. A type of insurance against defaults
  4. A 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 95

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.

  1. liberalization
  2. securitization
  3. easing
  4. investment banking