货币金融学习题.docx

货币金融学习题.docx

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货币金融学习题

货币金融学习题

Chapter1WhyStudyMoney,Banking,andFinancialMarkets?

1.1WhyStudyFinancialMarkets?

1）FinancialmarketspromoteeconomicefficiencybyA）channelingfundsfrominvestorstosavers.B）creatinginflation.

C）channelingfundsfromsaverstoinvestors.D）reducinginvestment.Answer:

CQuesStatus:

Revised

2）Financialmarketspromotegreatereconomicefficiencybychannelingfundsfrom________to________.A）investors;saversB）borrowers;saversC）savers;borrowersD）savers;lenders

Answer:

CQuesStatus:

New

3）Well-functioningfinancialmarketspromoteA）inflation.B）deflation.C）unemployment.D）growth.

Answer:

DQuesStatus:

Revised

4）Marketsinwhichfundsaretransferredfromthosewhohaveexcessfundsavailabletothose

whohaveashortageofavailablefundsarecalledA）commoditymarkets.B）fund-availablemarkets.C）derivativeexchangemarkets.D）financialmarkets.

Answer:

DQuesStatus:

PreviousEdition

5）________marketstransferfundsfrompeoplewhohaveanexcessofavailablefundstopeoplewhohaveashortage.A）CommodityB）Fund-availableC）Financial

D）DerivativeexchangeAnswer:

CQuesStatus:

New

6）PoorlyperformingfinancialmarketscanbethecauseofA）wealth.B）poverty.C）financialstability.D）financialexpansion.Answer:

BQuesStatus:

Revised

7）Thebondmarketsareimportantbecausetheyare

A）easilythemostwidelyfollowedfinancialmarketsintheUnitedStates.

B）themarketswhereforeignexchangeratesaredetermined.C）themarketswhereinterestratesaredetermined.D）themarketswhereallborrowersgettheirfunds.Answer:

CQuesStatus:

Revised

8）Thepricepaidfortherentalofborrowedfunds（usuallyexpressedasapercentageofthe

rentalof$100peryear）iscommonlyreferredtoastheA）inflationrate.B）exchangerate.C）interestrate.D）aggregatepricelevel.

Answer:

CQuesStatus:

PreviousEdition

9）Comparedtointerestratesonlong-termU.S.governmentbonds,interestrateson

three-monthTreasurybillsfluctuate________andare________onaverage.A）more;lowerB）less;lowerC）more;higherD）less;higher

Answer:

AQuesStatus:

PreviousEdition

10）TheinterestrateonBaa（mediumquality）corporatebondsis________,onaverage,thanother

interestrates,andthespreadbetweenitandotherratesbecame________inthe1970s.A）lower;smallerB）lower;largerC）higher;smallerD）higher;larger

Answer:

DQuesStatus:

PreviousEdition

11）Everythingelseheldconstant,adeclineininterestrateswillcausespendingonhousingtoA）fall.

B）remainunchanged.

C）eitherrise,fall,orremainthesame.D）rise.

Answer:

DQuesStatus:

Revised

12）Anincreaseininterestratesmight________savingbecausemorecanbeearnedininterestincome.A）encourageB）discourageC）disallowD）invalidate

Answer:

AQuesStatus:

New

13）Everythingelseheldconstant,anincreaseininterestratesonstudentloans

A）increasesthecostofacollegeeducation.B）reducesthecostofacollegeeducation.C）hasnoeffectoneducationalcosts.D）increasescostsforstudentswithnoloans.Answer:

AQuesStatus:

Revised

14）Highinterestratesmightcauseacorporationto________buildinganewplantthatwouldprovidemorejobs.A）completeB）consider

C）postponeD）contemplate

Answer:

CQuesStatus:

New

15）ThestockmarketisimportantbecauseitisA）whereinterestratesaredetermined.

B）themostwidelyfollowedfinancialmarketintheUnitedStates.C）whereforeignexchangeratesaredetermined.D）themarketwheremostborrowersgettheirfunds.Answer:

BQuesStatus:

Revised

16）Stockpricessincethe1950shavebeen

A）relativelystabletrendingupwardatasteadypace.B）relativelystabletrendingdownwardatamoderaterate.C）extremelyvolatile.

D）unstabletrendingdownwardatamoderaterate.Answer:

CQuesStatus:

PreviousEdition

17）ArisingstockmarketindexduetohighersharepricesA）increasespeople?

swealth,butisunlikelytoincreasetheirwillingnesstospend.B）increasespeople?

swealthandasaresultmayincreasetheirwillingnesstospend.C）decreasestheamountoffundsthatbusinessfirmscanraisebysellingnewly-issuedstock.D）decreasespeople?

swealth,butisunlikelytoincreasetheirwillingnesstospend.Answer:

BQuesStatus:

Revised18）WhenstockpricesfallA）anindividual?

swealthisnotaffectednoristheirwillingnesstospend.

B）abusinessfirmwillbemorelikelytosellstocktofinanceinvestmentspending.C）anindividual?

swealthmaydecreasebuttheirwillingnesstospendisnotaffected.D）anindividual?

swealthmaydecreaseandtheirwillingnesstospendmaydecrease.Answer:

DQuesStatus:

New19）Changesinstockprices

A）donotaffectpeople?

swealthandtheirwillingnesstospendB）affectfirms

?

decisionstosellstocktofinanceinvestmentspending.C）occurinregularpatterns.

D）areunimportanttodecisionmakers.Answer:

BQuesStatus:

Revised

20）Anincreaseinstockprices________thesizeofpeople?

swealthandmay________their

willingnesstospend,everythingelseheldconstant.A）increases;increaseB）increases;decreaseC）decreases;increaseD）decreases;decrease

Answer:

AQuesStatus:

New

21）Fearofamajorrecessioncausesstockpricestofall,everythingelseheldconstant,whichinturncausesconsumerspendingtoA）increase.

B）remainunchanged.C）decrease.

D）cannotbedetermined.Answer:

CQuesStatus:

Revised

22）Acommonstockisaclaimonacorporation?

sA）debt.B）liabilities.C）expenses.

D）earningsandassets.Answer:

DQuesStatus:

Revised

23）On________,October19,1987,themarketexperienceditsworstone-daydropinitsentire

historywiththeDIJAfallingbymorethan500points.A）?

TerribleTuesday?

B）?

WoefulWednesday?

C）?

FreakyFriday?

D）?

BlackMonday?

Answer:

DQuesStatus:

New

24）Thedeclineinstockpricesfrom2000through2002A）increasedindividuals?

willingnesstospend.B）hadnoeffectonindividualspending.C）reducedindividuals?

willingnesstospend.D）increasedindividualwealth.Answer:

CQuesStatus:

Revised

25）TheDowreachedapeakofover11,000beforethecollapseofthe________bubblein2000.A）housing

B）manufacturingC）high-techD）banking

Answer:

CQuesStatus:

New

26）Thepriceofonecountry?

scurrencyintermsofanothercountry?

scurrencyiscalledtheA）exchangerate.B）interestrate.

C）DowJonesindustrialaverage.D）primerate.

Answer:

AQuesStatus:

Revised

27）Themarketwhereonecurrencyisconvertedintoanothercurrencyiscalledthe________market.A）stockB）bondC）derivativesD）foreignexchangeAnswer:

DQuesStatus:

New

28）Everythingelseconstant,astrongerdollarwillmeanthat

A）vacationinginEnglandbecomesmoreexpensive.B）vacationinginEnglandbecomeslessexpensive.C）Frenchcheesebecomesmoreexpensive.D）Japanesecarsbecomemoreexpensive.Answer:

BQuesStatus:

PreviousEdition

29）Whichofthefollowingismostlikelytoresultfromastrongerdollar?

A）U.S.goodsexportedaboardwillcostlessinforeigncountries,andsoforeignerswillbuymoreofthem.

B）U.S.goodsexportedaboardwillcostmoreinforeigncountriesandsoforeignerswillbuymoreofthem.

C）U.S.goodsexportedabroadwillcostmoreinforeigncountries,andsoforeignerswillbuyfewerofthem.

D）Americanswillpurchasefewerforeigngoods.Answer:

CQuesStatus:

PreviousEdition

30）Everythingelseheldconstant,aweakerdollarwilllikelyhurtA）textileexportersinSouthCarolina.

B）wheatfarmersinMontanathatselldomestically.

C）automobilemanufacturersinMichiganthatusedomesticallyproducedinputs.

D）furnitureimportersinCalifornia.Answer:

DQuesStatus:

Revised

31）Everythingelseheldconstant,astrongerdollarbenefits________andhurts________.

A）Americanbusinesses;AmericanconsumersB）Americanbusinesses;foreignbusinessesC）Americanconsumers;AmericanbusinessesD）foreignbusinesses;AmericanconsumersAnswer:

CQuesStatus:

StudyGuide

32）From1980toearly1985thedollar________invalue,therebybenefitingAmerican________.A）appreciated;consumersB）appreciated,businessesC）depreciated;consumersD）depreciated,businesses

Answer:

AQuesStatus:

PreviousEdition

33）From1980to1985thedollarappreciatedrelativetotheBritishpound.Holdingeverythingelse

constant,onewouldexpectthat,whencomparedto1980,A）fewerBritonstraveledtotheUnitedStatesin1985.B）BritonsimportedmorewinefromCaliforniain1985.C）AmericansexportedmorewheattoEnglandin1985.D）moreBritonstraveledtotheUnitedStatesin1985.Answer:

AQuesStatus:

PreviousEdition

34）Whenin1985aBritishpoundcostapproximately$1.30,aShetlandsweaterthatcost100

Britishpoundswouldhavecost$130.Withaweakerdollar,thesameShetlandsweaterwouldhavecostA）lessthan$130.

B）morethan$130.

C）$130,sincetheexchangeratedoesnotaffectthepricesthatAmericanconsumerspayforforeigngoods.

D）$130,sincethedemandforShetlandsweaterswilldecreasetopreventanincreaseinpriceduetothestrongerdollar.Answer:

BQuesStatus:

PreviousEdition

35）Everythingelseheldconstant,adecreaseinthevalueofthedollarrelativetoallforeign

currenciesmeansthatthepriceofforeigngoodspurchasedbyAmericansA）increasesB）decreases.C）remainsunchanged.

D）eitherincreases,decreases,orremainsunchanged.Answer:

AQuesStatus:

Revised

36）AmericanfarmerswhosellbeeftoEuropebenefitmostfromA）adecreaseinthedollarpriceofeuros.B）anincreaseinthedollarpriceofeuros.C）aconstantdollarpriceforeuros.

D）aEuropeanbanonimportsofAmericanbeef.Answer:

BQuesStatus:

Revised