Chapter 14 Theory of Financial StructureWord文档下载推荐.docx

Chapter 14 Theory of Financial StructureWord文档下载推荐.docx

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C）50percent

D）5percent

4）OfthesourcesofexternalfundsfornonfinancialbusinessesintheUnitedStates,

stocksaccountforapproximately_____ofthetotal.

A）10percent

B）20percent

C）30percent

D）40percent

188

5）Withregardtoexternalsourcesoffinancingfornonfinancialbusinessesinthe

UnitedStates,whichofthefollowingareaccuratestatements?

A）Marketablesecuritiesaccountforalargershareofexternalbusinessfinancing

intheUnitedStatesthaninmostothercountries.

B）Since1970,lessthan5percentofnewlyissuedcorporatebondsand

commercialpaperhavebeensolddirectlytoAmericanhouseholds.

C）Thestockmarketaccountedforasizeablefractionofthefinancingof

Americanbusinessesinthe1970-1996period.

D）Alloftheabove.

E）Only（A）and（B）oftheabove.

E

6）Withregardtoexternalsourcesoffinancingfornonfinancialbusinessesinthe

A）Directfinanceisusedinlessthan5percentoftheexternalfinancingof

Americanbusinesses.

B）Onlylarge,well-establishedcorporationshaveaccesstosecuritiesmarketsto

financetheiractivities.

C）BankloansintheUnitedStatesprovidefourtimesmorefinancingofcorporate

activitiesthandostockmarkets.

D

7）（I）IntheUnitedStatesbankloansarethemostimportantsourceofexternalfunds

fornonfinancialbusinesses.（II）InGermanyandJapan,issuingstocksandbondsis

themostimportantsourceofexternalfornonfinancialbusinesses.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

8）Whichofthefollowingisnotoneoftheeightbasicfactsaboutfinancialstructure?

A）Debtcontractsaretypicallyextremelycomplicatedlegaldocumentsthatplace

substantialrestrictionsonthebehavioroftheborrower.

B）Indirectfinance,whichinvolvestheactivitiesoffinancialintermediaries,is

manytimesmoreimportantthandirectfinance,inwhichbusinessesraise

fundsdirectlyfromlendersinfinancialmarkets.

C）Collateralisaprevalentfeatureofdebtcontractsforbothhouseholdsand

business.

D）Newsecurityissuesarethemostimportantsourceofexternalfundstofinance

businesses.

189

9）Whichofthefollowingisnotoneoftheeightbasicfactsaboutfinancialstructure?

A）Thefinancialsystemisamongthemostheavilyregulatedsectorsofthe

economy.

B）Issuingmarketablesecuritiesistheprimarywaybusinessesfinancetheir

operations.

C）Indirectfinance,whichinvolvestheactivitiesoffinancialintermediaries,is

D）Banksarethemostimportantsourceofexternalfundstofinancebusinesses.

10）Becauseinformationisscarce,

A）equitycontractsareusedmuchmorefrequentlytoraisecapitalthanaredebt

contracts.

B）monitoringmanagersgivesrisetocostlystateverification.

C）governmentregulations,suchasstandardaccountingprinciples,canhelp

reducemoralhazard.

D）alloftheabovearetrue.

E）only（B）and（C）oftheabovearetrue.

11）Whichofthefollowingbestexplainstherecentdeclineintheroleoffinancial

intermediaries?

A）Privateproductionandsaleofinformation

B）Governmentregulationtoincreaseinformation

C）Improvementsininformationtechnology

D）Noneoftheabovecanexplaintherecentdecline

C

12）Ifbadcreditrisksaretheoneswhomostactivelyseekloansand,therefore,receive

themfromfinancialintermediaries,thenfinancialintermediariesfacetheproblem

of

A）moralhazard.

B）adverseselection.

C）free-riding.

D）costlystateverification.

13）Ifborrowerstakeonbigrisksafterobtainingaloan,thenlendersfacetheproblem

B）free-riding.

C）adverseselection.

190

14）Becauseofthelemonsproblemintheusedcarmarket,theaveragequalityofthe

usedcarsofferedforsalewillbe______,whichgivesrisetotheproblemof

______.

A）low;

moralhazard

B）low;

adverseselection

C）high;

D）high;

15）Intheusedcarmarket,asymmetricinformationleadstothelemonsproblem

becausethepricethatbuyersarewillingtopaywill

A）reflectthehighestqualityofusedcarsinthemarket.

B）reflectthelowestqualityofusedcarsinthemarket.

C）reflecttheaveragequalityofusedcarsinthemarket.

D）noneoftheabove.

16）Theproblemcreatedbyasymmetricinformationbeforethetransactionoccursis

called_____,whiletheproblemcreatedafterthetransactionoccursiscalled_____

A）adverseselection;

moralhazard.

B）moralhazard;

adverseselection.

C）costlystateverification;

free-riding.

D）free-riding;

costlystateverification.

17）Aborrowerwhotakesoutaloanusuallyhasbetterinformationaboutthepotential

returnsandriskoftheinvestmentprojectsheplanstoundertakethandoesthe

lender.Thisinequalityofinformationiscalled

B）asymmetricinformation.

C）noncollateralizedrisk.

D）adverseselection.

18）Adverseselectionisaproblemassociatedwithequityanddebtcontractsarising

from

A）thelender’srelativelackofinformationabouttheborrower’spotentialreturns

andrisksofhisinvestmentactivities.

B）thelender’sinabilitytolegallyrequiresufficientcollateraltocovera100

percentlossiftheborrowerdefaults.

C）theborrower’slackofincentivetoseekaloanforhighlyriskyinvestments.

191

19）Moralhazardisaproblemassociatedwithdebtandequitycontractsarisingfrom

A）theborrower’sincentivetotakehighlyriskyinvestments.

B）theowners’inabilitytoensurethatmanagerswillactintheowners’interest.

C）thedifficultylendershaveinsortingoutgoodcreditrisksfrombadcreditrisks.

D）alloftheabove.

E）only（A）and（B）oftheabove.

20）Becauseoftheadverseselectionproblem,

A）lendersmaymakeadisproportionateamountofloanstobadcreditrisks.

B）lendersmayrefuseloanstoindividualswithlownetworth.

C）lendersarereluctanttomakeloansthatarenotsecuredbycollateral.

21）Becauseoftheadverseselectionproblem,

A）goodcreditrisksaremorelikelytoseekloans,causinglenderstomakea

disproportionateamountofloanstogoodcreditrisks.

B）lendersmayrefuseloanstoindividualswithhighnetworth,becauseoftheir

greaterproclivityto“skiptown.”

22）Theproblemofadverseselectionhelpstoexplain

A）whybanksprefertomakeloanssecuredbycollateral.

B）whybankshaveacomparativeadvantageinraisingfundsforAmerican

C）whyborrowersarewillingtooffercollateraltosecuretheirpromisestorepay

loans.

23）Theproblemofadverseselectionhelpstoexplain

A）whichfirmsaremorelikelytoobtainfundsfrombanksandotherfinancial

intermediaries,ratherthanfromsecuritiesmarkets.

B）whycollateralisanimportantfeatureofconsumer,butnotbusiness,debt

C）whydirectfinanceismoreimportantthanindirectfinanceasasourceof

businessfinance.

D）only（A）and（B）oftheabove.

192

24）Theconceptofadverseselectionhelpstoexplain

A）whycollateralisnotacommonfeatureofmanydebtcontracts.

B）whylarge,well-establishedcorporationsfinditsodifficulttoborrowfundsin

securitiesmarkets.

C）whyfinancialmarketsareamongthemostheavilyregulatedsectorsofthe

25）Thatmostusedcarsaresoldbyintermediaries（i.e.,usedcardealers）provides

evidencethattheseintermediaries

A）havebeenaffordedspecialgovernmenttreatment,sinceusedcardealersdonot

provideinformationthatisvaluedbyconsumersofusedcars.

B）areabletopreventpotentialcompetitorsfromfree-ridingofftheinformation

thattheyprovide.

C）havefailedtosolveadverseselectionproblemsinthismarketbecause

“lemons”continuetobetraded.

D）doalloftheabove.

26）Thatmostusedcarsaresoldbyintermediaries（i.e.,usedcardealers）provides

A）provideinformationthatisvaluedbyconsumersofusedcars.

B）areabletopreventothersfromfree-ridingofftheinformationthatthey

provide.

C）canprofitbybecomingexpertsindeterminingwhetheranautomobileisa

goodcaroralemon.

27）Akeyfindingoftheeconomicanalysisoffinancialstructureisthat

A）theexistenceofthefree-riderproblemfortradedsecuritieshelpstoexpla