MACRO CHAPTER 9 TESTQUESTIONS宏观经济学答案.docx

MACRO CHAPTER 9 TESTQUESTIONS宏观经济学答案.docx

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MACROCHAPTER9TESTQUESTIONS宏观经济学答案

MACROCHAPTER9TESTQUESTIONS

Money,Prices,andtheFinancialSystem

MultipleChoiceQuestions

1. IntheUnitedStatessavingisallocatedtoitsmostproductiveuseby:

A. theFederalReserve.

B. theFederal,state,andlocalgovernments.

C. regulationsandlawsdesignedtoimproveproductivity.

D. adecentralized,market-orientedfinancialsystem.

2. Decentralizedmarket-basedfinancialsystemsimprovetheallocationofsavingby:

A. insuringcapitalgainsexceeddividendpayments.

B. eliminatingtheneedforcommercialbanksorotherfinancialintermediaries.

C. matchingnetcapitalinflowstonetcapitaloutflows.

D. providinginformationandrisk-sharingservices.

3. Thefinancialsystemconsistsoffinancial_____,suchascommercialbanks,andfinancial_____,suchasthestockmarket. 

A. markets;intermediaries

B. allocations;investments

C. intermediaries;markets

D. markets;institutions

4. Firmsthatextendcredittoborrowersusingfundsfromsaversarecalled:

A. bonddealers.

B. stockbrokers.

C. centralbanks.

D. financialintermediaries.

5. Thespecializedinformation-gatheringactivitiesthatbanksusetoevaluateborrowersareanexampleofthe:

A. cost-benefitprinciple.

B. principleofcomparativeadvantage.

C. scarcityprinciple.

D. principleofincreasingopportunitycost.

6. Privately-ownedfirmsthatacceptdepositsfromindividualsandbusinessesandusethosedepositstomakeloansarecalled:

A. mortgagebanks.

B. brokeragefirms.

C. commercialbanks.

D. investmentbanks.

7. Bankshelpsaversfindproductiveusesfortheirfundsbecausebankshavespecializedin:

A. gatheringinformationaboutandevaluatingpotentialborrowers.

B. obtainingpreferentialtaxtreatmentforsavers.

C. securinggovernmentguaranteesforloans.

D. evaluatingtheriskinessofstocks.

8. Financialintermediaries,suchascommercialbanks,helpborrowers,particularlysmallborrowers,by:

A. providinginformationtoevaluatepotentiallenders.

B. offeringtax-preferredborrowingopportunities.

C. eliminatingtheriskofborrowing.

D. providingcreditthatmightotherwisenotbeavailable.

9. Saversmayprefertousefinancialintermediariesratherthanlendingdirectlytoborrowersbecausefinancialintermediaries:

A. reducethecostofgatheringinformationaboutborrowers.

B. haveamonopolyonlending.

C. increasetheriskoflending.

D. offerhigherratesofreturnthanavailableelsewhere.

10. Tworeasonssaverskeepdepositsatbanksareto:

A. securemortgagesandtopurchasestocks.

B. earnareturnontheirsavingsandtofacilitatemakingpayments.

C. lowerinterestratesandtoincreasethemoneysupply.

D. equalizeloansupplyanddemandandtoearninterest.

11. Abondisa（n）:

A. regularpaymentmadetoownersofafirm.

B. claimtopartialownershipofafirm.

C. agreementissuedbyafinancialintermediarylinkingsaversandinvestors.

D. legalpromisetorepayadebt.

12. Theprincipalamountofabondistheamount:

A. originallylent.

B. ofinterestagreeduponwhenthebondwasoriginallyissued.

C. paidtothebondholdersonaregularbasis.

D. ofinterestthebondholderisentitledtowhenthebondmatures.

13. Thematurationdateofabondisthedateatwhich:

A. couponpaymentswillbemade.

B. theprincipalwillberepaid.

C. dividendpaymentswillbemade.

D. taxesonthebondaredue.

14. Thecouponrateisthe:

A. amountoriginallylent.

B. regularpaymentofinteresttoabondholder.

C. interestratepromisedwhenabondisissued.

D. maximuminterestratethatcanbepaidonabond.

15. Regularinterestpaymentsmadetobondholdersarecalled______payments. 

A. diversification

B. reserve

C. coupon

D. dividend

16. Iftheprincipalamountofabondis$10,000,000,thecouponrateis7%,andtheinflationrateis4%,thentheannualcouponpaymentmadetotheholderofthebondis:

A. $70,000.

B. $300,000.

C. $400,000.

D. $700,000.

17. Themarketvalueofaparticularbondatanygivenpointintimeiscalledthebond's:

A. couponrate.

B. principal.

C. term.

D. price.

18. Thecouponrateonnewlyissuedbondsisusuallyhigherforbondswith______termsand______riskthattheborrowerwillgobankrupt. 

A. shorter;greater

B. shorter;smaller

C. longer;greater

D. longer;smaller

19. Thecouponrateonnewlyissuedbondsisusually______forbondswithfavorabletaxtreatment,suchasmunicipalbonds,and______forbondsthatareveryrisky,suchasjunkbonds. 

A. higher;lower

B. higher;higher

C. lower;lower

D. lower;higher

20. Fredpurchasesabond,newlyissuedbytheBigTimeCorporation,for$10,000.Thebondpays$400toitsholderattheendofthefirst,second,andthirdyearsandpays$10,400uponitsmaturityattheendoffouryears.Theprincipalamountofthisbondis___,thecouponrateis____,andthetermofthisbondis_____. 

A. $400;40%;fouryears

B. $10,000;4%;fouryears

C. $10,000;$400;4%

D. $10,400;4%;fouryears

21. Whentheinterestrateonnewlyissuedbondsincreases,thepriceofexistingbonds:

A. increases.

B. decreases.

C. increasesonlyifthecouponrateisbelowthenewrate.

D. mayeitherincreaseordecrease.

22. Patpays$10,000foranewlyissuedtwo-yeargovernmentbondwitha$10,000facevalueanda6percentcouponrate.Oneyearlater,afterreceivingthefirstcouponpayment,Patsellsthebond.Ifthecurrentone-yearinterestrateongovernmentbondsis5percent,thenthepricePatreceivesis:

A. $10,000.

B. $500.

C. greaterthan$10,000.

D. lessthan$10,000.

23. Chrispays$10,000foranewlyissuedtwo-yeargovernmentbondwitha$10,000facevalueanda6percentcouponrate.Oneyearlater,afterreceivingthefirstcouponpayment,Chrissellsthebond.Ifthecurrentone-yearinterestrateongovernmentbondsis7percent,thenthepriceChrisreceivesis:

A. $10,000.

B. $700.

C. greaterthan$10,000.

D. lessthan$10,000.

24. Sydneypurchasesanewly-issued,two-yeargovernmentbondwithaprincipalamountof$10,000andacouponrateof6%paidannually.Oneyearbeforethebondsmatures（andafterreceivingthecouponpaymentforthefirstyear）,Sydneysellsthebondinthebondmarket.Whatprice（roundedtothenearestdollar）willSydneyreceiveforhisbondifnewly-issuedone-yeargovernmentbondsarepayinga5%couponrate?

A. $9,906

B. $10,000

C. $10,095

D. $10,600

25. Oneyearbeforematuritythepriceofabondwithaprincipalamountof$1,000andacouponrateof5%paidannuallyfellto$981.Theoneyearinterestratemustbe:

A. 8.5%.

B. 7.0%.

C. 5.0%.

D. 1.9%.

26. Whenthecouponrateonnewly-issuedbondsincreasesfrom5%to6%,thepricesofexistingbonds:

A. increase.

B. decrease.

C. remainunchanged.

D. increaseonlyifthecouponrateislessthan6%.

27. Whenthecouponrateonnewly-issuedbondsdecreasesfrom6%to5%,thepricesofexistingbonds:

A. increase.

B. decrease.

C. remainunchanged.

D. decreaseonlyifthecouponrateislessthan5%.

28. Sharesofstockare:

A. legalpromisestorepayadebt.

B. claimstopartialownershipofafirm.

C. regularpaymentsmadetoownersofafirm.

D. legalpromisestomakeregularpaymentstothestockholder.

29. Stockholdersreceivereturnsontheirfinancialinvestmentintheformof______and_____. 

A. interestpayments;dividends

B. capitalgains;dividends

C. couponpayments;capitalgains

D. capitalgains;interestpayments

30. Aregularpaymentreceivedbystockholdersforeachsharetheyowniscalleda:

A. couponpayment.

B. dividend.

C. bond.

D. capitalgain.

31. Therateofreturnthatfinancialinvestorsrequiretoholdariskyassetminustherateofreturnonasafeassetiscalledthe:

A. realinterestrate.

B. nominalinterestrate.

C. riskpremium.

D. discountrate.

32. AnincreaseintheperceivedriskinessofthestockofCompanyA______theriskpremiuminvestorsrequiretopurchaseCompanyAstockand______thepriceofCompanyAstock. 

A. increases;increases

B. increases;decreases

C. decreases;increases

D. decreases;decreases

33. AdecreaseintheperceivedriskinessofthestockofCompanyA______theriskpremiuminvestorsrequiretopurchaseCompanyAstockand______thepriceofCompanyAstock. 

A. increases;increases

B. increases;decreases

C. decreases;increases

D. decreases;decreases

34. Youoriginallyrequiredariskpremiumof6percentinadditiontotherateofreturnonsafeassetsbeforeyouwouldpurchasesharesofTechnoCompanystock.Ifyouandotherinvestorsreducetheriskpremiumyourequireto4percent,thepriceofTechnoCompanystockwill:

A. increase.

B. decrease.

C. equaltheoldriskpremiumplusthenewriskpremium.

D. equalthenewriskpremiumplustherateofreturnonsafeassets.

35. Anincreaseininterestratesresultsina（n）______intherequiredrateofreturntoholdstocksand______currentstockprices. 

A. increase;reduces

B. increase;raises

C. decrease;raises

D. decrease;reduces

36. Thecurrentpriceofastockincreaseswhen:

A. expectedfuturedividendsdecrease.

B. theexpectedfuturepriceofthestockdecreases.

C. interestratesdecrease.

D. theperceivedriskinessofthestockincreases.

37. YouexpectashareofEconNews.Comtosellfor$65ayearfromnowandtopaya$2dividendpershareinoneyear.Whatshouldyoupay（roundedtothenearestdollar）forthestocktodayifyourequirean8%return?

A. $60

B. $62

C. $67

D. $70

38. YouexpectashareofEconNews.Comtosellfor$65ayearfromnow.Ifyouarewillingtopay$65.74foroneshareoft