金融学第四版莫林伯顿答案整理双语仅供学习参考.docx

1、金融学第四版莫林伯顿答案整理双语仅供学习参考因为考试，各处搜集来的。仅供学习参考。请勿到处传阅。by江大学子。13、is each of the following an example of direct or indirect financing? a.direct financing (john has a direct claim on the biotech firm) b.direct financing(mary lends directly to the government by purchasing the government security) c.indirect f

2、inancing(assuming the savings and loan lends funds) d.direct financing(loan goes directly from mary to john) e.indirect financing(loan is throuth a financial intermediary中间人) 2、What are the functions of money? Which function do you think is most important?To serve as a means of payment (medium of ex

3、change), a unit of account, and a store of value.The most important function of money is to serve as a means of payment (medium of exchange). Thus, it is critical that money is generally accepted to make payments. Without a generally accepted means of payment, exchange is very costly. For an exchang

4、e to take place, there would have to be a double coincidence of wants where the person you wished to buy from wanted what you were offering in exchange. 8、why is the debt of financial institutions excluded from DNFD?credit comes from depository institutions,other financial intermediries, and other f

5、inancial and nonfinancial institutions.the money supply is a stock,while credit is a flow.flows over time lead to changes is stocks measured at different points in time.likewise, changes in stocks measured at different points in time result from over time5、What is the oppotunity cost of holding mone

6、y?the opportunity cost of holding money is the value of the next best alternative to holding money.this is the interest that could be earned by holding non-monetary assets.8、What are the sources of credit? Explain the following statement: “The money supply is measured at a point in time while the fl

7、ow of credit is measured over time.”Credit comes from depository institutions, other financial intermediaries, and other financial and nonfinancial institutions. The money supply is a stock, while credit is a flow. Flows over time lead to changes in stocks measured at different points in time. Likew

8、ise, changes in stocks measured at different points in time result from flows over time.9、how does real DGP differ from nominal GDP?real GDP is the inflation adjusted quantity of final goods and services produced in an ecnomy in a given time period.nominal GDP is the quanlity of final goods and serv

9、ices producted in an economy during a guven time period and valued at todays prices.11、Explain the differece between money and credit.give an example of each.money clocks going off obviously do not cause the sun to rise. To assume so would be mistaking corrlation(association)with causation.14、Assume

10、 the market for money is originally in equilibrium. Explain what happens to demand, supply, quantity demanded, and/or quantity supplied, ceteris paribus, given each of the following events: a.demand for money stays the same; the supply of money increases (supply curve shifts rightward);quantity dema

11、nded increaces due ti the fall in interest rates;quantity supplied increases because of the rightward shift of the supply curve. b. Demand for money increases (demand curve shifts rightward) causing the interest rate to rise; the supply of money stays the same; quantity demanded stays the same; quan

12、tity supplied stays the same. c. Demand for money decreases (demand curve shifts leftward); the supply of money stays the same; quantity demanded and quantity supplied stay the same. d. Demand for money stays the same; the supply of money increases due to the increased provision of reserves; quantit

13、y demanded and quantity supplied both increase.20、Assume that the price of a market basket of goods and services is $2,000 in the base period, $2,060 one year later, and $2,100 two years later. What is the price index in the base period? After the first year? After the second year? What is the rate

14、of inflation in the first year? In the second year?The price index is always 100 in the base year. After the first year, the price index is 103 ($2,060/$2,000 x 100). The price index the second year is 105 ($2,100/$2,000 x 100). The rate of inflation the first year is 3 percent (103 100)/100). The r

15、ate of inflation the second year is 1.99 percent (105-103)/103).21、Ceteris paribus, what happens to the demand for money if incomes go down? Ceteris paribus, what happens to the supply of money if reserves go up? In each case, does the interest rate change? Graph each case. If incomes go down, the d

16、emand for money decreases (Case 1) and interest rates fall. If reserves go up, the supply of money increases (Case 11) and the interest rate falls. The Role of Money and Credit 1722、 Use a graph to show what happens to the interest rate if the demand for money is increasing while the supply of money

17、 is decreasing. The graph above shows what happens to the interest rate when the demand for money is increasing and the supply of money decreasing. Originally, the market is in equilibrium where the demand curve (D) and the supply curve (S) intersect at interest rate i. At equilibrium, the quantity

18、supplied of money is equal to the quantity demanded. When the demand for money increases from D to D1, and the supply of money decreases from S to S1, the market will move to the intersection of the new demand and supply curve. The interest rate increases to i1. 23、 Assume a price index increases fr

19、om 145 to 150 to 155 over three consecutive years. Was the rate of inflation higher in the second or third year? What does it mean when a price index falls from 150 to 145? In the first year, the rate of inflation was 3.1 percent (150-145)/145). In the second year, the rate of inflation was 3 percen

20、t (155-150)/150). When a price index falls in value, it means that the overall level of prices has fallen and that there is deflation or negative inflation. In this case, the overall level of prices fell 3 percent.4、Discuss the major function of market markers in securities markets. What is the diff

21、erence between a broker and a dealer? The market makers function as coordinators who link up buyers and sellers of financial instruments. They serve three important functions: 1. they disseminate information about market conditions to buyers and sellers; 2. they connect the various markets by buying

22、 and selli ng i n the market themselves; 3. they provide fi nancial services that determine the quality of primary and secondary markets. A broker simply arranges trades between buyers and sellers. A dealer, in addition to arranging trades between buyers and sellers, stands ready to be a pri ncipal

23、in a transaction. 10、Define and contrast stocks and bonds. What are the advantages of owning preferred stock? What are the advantages of owning common stock?Stocks are equity claims that represent ownership of the net income and assets of a corporation. The income that stockholders receive for their

24、 ownership is called dividends. Corporate bonds are longterm debt instruments issued by corporations, usually (although not always) with excellent credit ratings. The owners of such bonds receive interest payments twice a year and the principal at maturity. Bondholders are paid interest before stock

25、holders are paid any dividends. Government bonds are issued by the federal government and are considered risk-free. The proceeds of the bonds are used to finance the deficits of the federal government. Preferred stock pays a fixed dividend and, in the event of bankruptcy, the owners of preferred sto

26、ck are entitled to be paid first after other creditors of the corporation have been paid.Common stock pays a variable dividend, which is dependent on the profits that are left over after preferred stockholders have been paid and retained earnings set aside. Owning common stock may result in higher p

27、rofit rates when the company is growing and electing to pay high dividends.17、 In June 2004, John pays $9,800 for a one-year T-bill that can be redeemed for $10,000. ? What is the effective interest? ? What is the yield?The effective interest is the difference between the price of the T-bill ($9,800

28、) and what the T-bill will be redeemed for in one year. In this example, the amount is $200 ($10,000 - $9,800). ? The yield is the interest payment divided by the price of the T-bill ($200/$9,800 = 2.04 percent).3、Under what conditions will a bond sell at a premium above par? At a discount from par?

29、If the interest rate increases, a bond will sell at a discount from par. If the interest rate increases, the present value of the future stream of income from the bond falls and therefore its price falls. If the interest rate decreases, a bond will sell at a premium above par. If the interest rate d

30、ecreases, the present value of the future stream of income from the bond rises and therefore its price rises. 9、What is the present value of each of the following income streams? a. $100 to be received at the end of each of the next three years. b. $100 to be received at the end of each of the next

31、three years plus an additional payment of $1,000 at the end of the third year a. The present value of $100 at the end of each of the next three years depends on the current interest rate and can be found by the following formula: ? $100/(1+i)1 + $100/(1+i)2 + $100/(1+i)3 ? For an interest rate of 10

32、 percent, the present value is found by substituting .10 for i in the above formula: ? $90.91 + $82.64 + $75.19 = $248.74 19 b. The present value of $100 at the end of each of the next three years plus an additional payment of $1,000 at the end of the third year depends on the current interest rate and can be found by the following formula: ? $100/(1+i)1 + $100/(1+i)2 + $100/(1+i)3 + $1,000/(1+i)3 ? For an interest rate of 10 percent, the present value is found by substituting .10 for i would be equal to ? $90.91 + $82.64 + $75.19 + $751.88 = $1,000.6210、 What is the price of