货币金融学习题.docx

1、货币金融学习题货币金融学习题 Chapter 1 Why Study Money, Banking, and Financial Markets? 1.1 Why Study Financial Markets? 1) Financial markets promote economic efficiency by A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment. An

2、swer: C Ques Status: Revised 2)Financial markets promote greater economic efficiency by channeling funds from _ to _. A) investors; savers B) borrowers; savers C) savers; borrowers D) savers; lenders Answer: C Ques Status: New 3) Well-functioning financial markets promote A) inflation. B) deflation.

3、 C) unemployment. D) growth. Answer: D Ques Status: Revised 4)Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) commodity markets. B) fund-available markets. C) derivative exchange markets. D) financial mar

4、kets. Answer: D Ques Status: Previous Edition 5)_ markets transfer funds from people who have an excess of available funds to people who have a shortage. A) Commodity B) Fund-available C) Financial D) Derivative exchange Answer: C Ques Status: New 6) Poorly performing financial markets can be the ca

5、use of A) wealth. B) poverty. C) financial stability. D) financial expansion. Answer: B Ques Status: Revised 7) The bond markets are important because they are A)easily the most widely followed financial markets in the United States. B) the markets where foreign exchange rates are determined. C) the

6、 markets where interest rates are determined. D) the markets where all borrowers get their funds. Answer: C Ques Status: Revised 8)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 A) inflation rate. B) e

7、xchange rate. C) interest rate. D) aggregate price level. Answer: C Ques Status: Previous Edition 9)Compared to interest rates on long-term U.S. government bonds, interest rates on three-month Treasury bills fluctuate _ and are _ on average. A) more; lower B) less; lower C) more; higher D) less; hig

8、her Answer: A Ques Status: Previous Edition 10)The interest rate on Baa (medium quality) corporate bonds is _, on average, than other interest rates, and the spread between it and other rates became _ in the 1970s. A) lower; smaller B) lower; larger C) higher; smaller D) higher; larger Answer: D Que

9、s Status: Previous Edition 11)Everything else held constant, a decline in interest rates will cause spending on housing to A) fall. B) remain unchanged. C) either rise, fall, or remain the same. D) rise. Answer: D Ques Status: Revised 12)An increase in interest rates might _ saving because more can

10、be earned in interest income. A) encourage B) discourage C) disallow D) invalidate Answer: A Ques Status: New 13)Everything else held constant, an increase in interest rates on student loans A) increases the cost of a college education. B) reduces the cost of a college education. C) has no effect on

11、 educational costs. D) increases costs for students with no loans. Answer: A Ques Status: Revised 14)High interest rates might cause a corporation to _ building a new plant that would provide more jobs. A) complete B) consider C) postpone D) contemplate Answer: C Ques Status: New 15) The stock marke

12、t is important because it is A) where interest rates are determined. B) the most widely followed financial market in the United States. C) where foreign exchange rates are determined. D) the market where most borrowers get their funds. Answer: B Ques Status: Revised 16) Stock prices since the 1950s

13、have been A) relatively stable trending upward at a steady pace. B) relatively stable trending downward at a moderate rate. C) extremely volatile. D) unstable trending downward at a moderate rate. Answer: C Ques Status: Previous Edition 17) A rising stock market index due to higher share prices A) i

14、ncreases people? s wealth, but is unlikely to increase their willingness to spend. B) increases people? s wealth and as a result may increase their willingness to spend. C) decreases the amount of funds that business firms can raise by selling newly-issued stock. D) decreases people? s wealth, but i

15、s unlikely to increase their willingness to spend. Answer: B Ques Status: Revised 18) When stock prices fall A) an individual? s wealth is not affected nor is their willingness to spend. B)a business firm will be more likely to sell stock to finance investment spending. C) an individual? s wealth ma

16、y decrease but their willingness to spend is not affected. D) an individual? s wealth may decrease and their willingness to spend may decrease. Answer: D Ques Status: New 19) Changes in stock prices A) do not affect people?s wealth and their willingness to spend B) affect firms ? decisions to sell s

17、tock to finance investment spending. C) occur in regular patterns. D) are unimportant to decision makers. Answer: B Ques Status: Revised 20) An increase in stock prices _ the size of people?s wealth and may _ their willingness to spend, everything else held constant. A) increases; increase B) increa

18、ses; decrease C) decreases; increase D) decreases; decrease Answer: A Ques Status: New 21)Fear of a major recession causes stock prices to fall, everything else held constant, which in turn causes consumer spending to A) increase. B) remain unchanged. C) decrease. D) cannot be determined. Answer: C

19、Ques Status: Revised 22) A common stock is a claim on a corporation?s A) debt. B) liabilities. C) expenses. D) earnings and assets. Answer: D Ques Status: Revised 23)On _, October 19, 1987, the market experienced its worst one-day drop in its entire history with the DIJA falling by more than 500 poi

20、nts. A) ?Terrible Tuesday? B) ?Woeful Wednesday? C) ?Freaky Friday? D) ?Black Monday? Answer: D Ques Status: New 24) The decline in stock prices from 2000 through 2002 A) increased individuals? willingness to spend. B) had no effect on individual spending. C) reduced individuals? willingness to spen

21、d. D) increased individual wealth. Answer: C Ques Status: Revised 25)The Dow reached a peak of over 11,000 before the collapse of the _ bubble in 2000. A) housing B) manufacturing C) high-tech D) banking Answer: C Ques Status: New 26) The price of one country?s currency in terms of another country?s

22、 currency is called the A) exchange rate. B) interest rate. C) Dow Jones industrial average. D) prime rate. Answer: A Ques Status: Revised 27)The market where one currency is converted into another currency is called the _ market. A) stock B) bond C) derivatives D) foreign exchange Answer: D Ques St

23、atus: New 28) Everything else constant, a stronger dollar will mean that A) vacationing in England becomes more expensive. B) vacationing in England becomes less expensive. C) French cheese becomes more expensive. D) Japanese cars become more expensive. Answer: B Ques Status: Previous Edition 29)Whi

24、ch of the following is most likely to result from a stronger dollar? A)U.S. goods exported aboard will cost less in foreign countries, and so foreigners will buy more of them. B)U.S. goods exported aboard will cost more in foreign countries and so foreigners will buy more of them. C)U.S. goods expor

25、ted abroad will cost more in foreign countries, and so foreigners will buy fewer of them. D) Americans will purchase fewer foreign goods. Answer: C Ques Status: Previous Edition 30) Everything else held constant, a weaker dollar will likely hurt A) textile exporters in South Carolina. B) wheat farme

26、rs in Montana that sell domestically. C)automobile manufacturers in Michigan that use domestically produced inputs. D) furniture importers in California. Answer: D Ques Status: Revised 31)Everything else held constant, a stronger dollar benefits _ and hurts _. A) American businesses; American consum

27、ers B) American businesses; foreign businesses C) American consumers; American businesses D) foreign businesses; American consumers Answer: C Ques Status: Study Guide 32)From 1980 to early 1985 the dollar _ in value, thereby benefiting American _. A) appreciated; consumers B) appreciated, businesses

28、 C) depreciated; consumers D) depreciated, businesses Answer: A Ques Status: Previous Edition 33)From 1980 to 1985 the dollar appreciated relative to the British pound. Holding everything else constant, one would expect that, when compared to 1980, A) fewer Britons traveled to the United States in 1

29、985. B) Britons imported more wine from California in 1985. C) Americans exported more wheat to England in 1985. D) more Britons traveled to the United States in 1985. Answer: A Ques Status: Previous Edition 34)When in 1985 a British pound cost approximately $1.30, a Shetland sweater that cost 100 B

30、ritish pounds would have cost $130. With a weaker dollar, the same Shetland sweater would have cost A) less than $130. B) more than $130. C)$130, since the exchange rate does not affect the prices that American consumers pay for foreign goods. D)$130, since the demand for Shetland sweaters will decr

31、ease to prevent an increase in price due to the stronger dollar. Answer: B Ques Status: Previous Edition 35)Everything else held constant, a decrease in the value of the dollar relative to all foreign currencies means that the price of foreign goods purchased by Americans A) increases B) decreases.

32、C) remains unchanged. D) either increases, decreases, or remains unchanged. Answer: A Ques Status: Revised 36) American farmers who sell beef to Europe benefit most from A) a decrease in the dollar price of euros. B) an increase in the dollar price of euros. C) a constant dollar price for euros. D) a European ban on imports of American beef. Answer: B Ques Status: Revised