经济学原理对应练习Ch 26.docx

1、经济学原理对应练习 Ch 26Chapter 26Saving, Investment, and the Financial SystemMultiple Choice 1. When opening a restaurant you may need to buy ovens, freezers, tables, and cash registers. Economists call these expendituresa. capital investment.b. investment in human capital.c. business consumption expenditur

2、es.d. None of the above is correct.ANS: A PTS: 1 DIF: 1 REF: 26-1TOP: Investment MSC: Interpretive 2. When a country saves a larger portion of its GDP, it will havea. more capital and higher productivity.b. more capital and lower productivity.c. less capital and higher productivity.d. less capital a

3、nd lower productivity.ANS: A PTS: 1 DIF: 1 REF: 26-1TOP: Investment MSC: Definitional 3. Institutions in the economy that help to match one persons saving with another persons investment are collectively called thea. Federal Reserve system.b. banking system.c. monetary system.d. financial system.ANS

4、: D PTS: 1 DIF: 1 REF: 26-1TOP: Financial system MSC: Definitional 4. Lekeishas income exceeds her expenditures. Lekeisha is aa. saver who demands money from the financial system.b. saver who supplies money to the financial system.c. borrower who demands money from the financial system.d. borrower w

5、ho supplies money to the financial system.ANS: B PTS: 1 DIF: 2 REF: 26-1TOP: Supply of loanable funds MSC: Definitional 5. Which of the following is not correct?a. When a country saves more, it has more capital.b. A supplier of loanable funds borrows money.c. The interest rate adjusts to balance the

6、 quantity supplied of and the quantity demanded of loanable funds.d. If Mary buys equipment for her factory, Mary is engaging in capital investment.ANS: B PTS: 1 DIF: 1 REF: 26-1TOP: Investment | Capital | Market for loanable funds MSC: Definitional 6. Lucy starts her own psychiatric practice, but h

7、er expenditures to open the practice exceed her income. Lucy is aa. saver who demands money from the financial system.b. saver who supplies money to the financial system.c. borrower who demands money from the financial system.d. borrower who supplies money to the financial system.ANS: C PTS: 1 DIF:

8、1 REF: 26-1TOP: Supply of loanable funds MSC: Definitional 7. A bond is aa. financial intermediary.b. certificate of indebtedness.c. certificate of partial ownership in an enterprise.d. None of the above is correct.ANS: B PTS: 1 DIF: 1 REF: 26-1TOP: Bonds MSC: Definitional 8. Which of the following

9、would be an example of direct finance?a. A saver buys shares in a mutual fund.b. A saver deposits money into a credit union.c. A saver buys a bond a corporation has just issued so it can purchase capital.d. None of the above is correct.ANS: C PTS: 1 DIF: 1 REF: 26-1TOP: Bonds | Direct finance MSC: I

10、nterpretive 9. A certificate of indebtedness that specifies the obligations of the borrower to the holder is called aa. bond.b. stock.c. mutual fund.d. All of the above are correct.ANS: A PTS: 1 DIF: 1 REF: 26-1TOP: Bonds MSC: Definitional 10. If the governments expenditures exceeded its receipts, i

11、t would likelya. lend money to a bank or other financial intermediary.b. borrow money from a bank or other financial intermediary.c. buy bonds directly from the public.d. sell bonds directly to the public.ANS: D PTS: 1 DIF: 2 REF: 26-1TOP: Bonds | Direct finance MSC: Interpretive 11. Megasoft wants

12、to finance the purchase of new equipment for developing security software called Doors, but they have limited internal funds. Megasoft will likely a. demand loanable funds by buying bonds.b. demand loanable funds by selling bonds.c. supply loanable funds by buying bonds.d. supply loanable funds by s

13、elling bonds.ANS: B PTS: 1 DIF: 2 REF: 26-1TOP: Investment | Market for loanable funds MSC: Interpretive 12. Skyline Chili wants to finance the purchase of new equipment for its restaurants, but they have limited internal funds. Skyline will likely a. demand loanable funds by buying bonds.b. demand

14、loanable funds by selling bonds.c. supply loanable funds by buying bonds.d. supply loanable funds by selling bonds.ANS: B PTS: 1 DIF: 2 REF: 26-1TOP: Investment | Market for loanable funds MSC: Interpretive 13. If Proctor and Gamble sells a bond it isa. borrowing directly from the public.b. borrowin

15、g indirectly from the public.c. lending directly to the public.d. lending indirectly to the public.ANS: A PTS: 1 DIF: 2 REF: 26-1TOP: Bonds | Direct finance MSC: Interpretive 14. Which of the following is correct?a. The maturity of a bond refers to the amount to be paid back.b. The principal of the

16、bond refers to the person selling the bond.c. A bond buyer cannot sell a bond before it matures.d. None of the above is correct.ANS: D PTS: 1 DIF: 1 REF: 26-1TOP: Bonds MSC: Definitional 15. Which of the following is not a nonsensical headline?a. British perpetuities about to mature.b. Disney issues

17、 new bonds with term of $1,000 each.c. Government bonds currently pay less interest than corporate bonds.d. Standard and Poors judges new junk bond to have very low credit risk.ANS: C PTS: 1 DIF: 2 REF: 26-1TOP: Bonds MSC: Interpretive 16. The length of time until a bond matures is called thea. perp

18、etuity.b. term.c. maturity.d. intermediation.ANS: B PTS: 1 DIF: 1 REF: 26-1TOP: Bonds | Term MSC: Definitional 17. A perpetuity is distinguished from other bonds in that ita. pays continuously compounded interest.b. pays interest only when it matures.c. never matures.d. will be used to purchase anot

19、her bond when it matures unless the owner specifies otherwise.ANS: C PTS: 1 DIF: 1 REF: 26-1TOP: Perpetuity MSC: Definitional 18. Which of the following is correct?a. Some bonds have terms as short as a few months.b. Because they are so risky, junk bonds pay a low rate of interest.c. Corporations bu

20、y bonds to raise funds.d. All of the above are correct.ANS: A PTS: 1 DIF: 1 REF: 26-1TOP: Bonds MSC: Interpretive 19. Which of the following is not correct?a. If you buy a bond from a corporation, you can sell the bond to someone else before it matures.b. Date to maturity refers to the scheduling of

21、 periodic interest rate payments on a bond.c. A bond is an IOU.d. There are millions of different bonds in the U.S. economy.ANS: B PTS: 1 DIF: 1 REF: 26-1TOP: Bonds MSC: Definitional 20. A bond that never matures is known as a a. perpetuity.b. an intermediary bond.c. an indexed bond.d. a junk bond.A

22、NS: A PTS: 1 DIF: 1 REF: 26-1TOP: Perpetuity MSC: Definitional 21. Which of the following is correct?a. Lenders sell bonds and borrowers buy them.b. Long-term bonds usually pay a lower interest rate than do short-term bonds because long-term bonds are riskier.c. Junk bonds refer to bonds that have b

23、een resold many times.d. None of the above is correct.ANS: D PTS: 1 DIF: 1 REF: 26-1TOP: Bonds MSC: Definitional 22. Long-term bonds are generallya. less risky than short-term bonds and so pay higher interest.b. less risky than short-term bonds and so pay lower interest.c. more risky than short-term

24、 bonds and so pay higher interest.d. more risky than short-term bonds and so pay lower interest.ANS: C PTS: 1 DIF: 1 REF: 26-1TOP: Bonds and risk MSC: Definitional 23. Compared to long-term bonds, other things the same, short-term bonds generally havea. more risk and so pay higher interest.b. less r

25、isk and so pay lower interest.c. less risk and so pay higher interest.d. about the same risk and so pay about the same interest.ANS: B PTS: 1 DIF: 1 REF: 26-1TOP: Bonds and risk MSC: Definitional 24. On which bond is default most likely?a. a junk bondb. a municipal bondc. a U.S. government bondd. a

26、corporate bond issued by Proctor and Gamble.ANS: A PTS: 1 DIF: 1 REF: 26-1TOP: Bonds and risk MSC: Definitional 25. Assuming that the bonds below have the same term and principal and that the state or local government which issues the municipal bond has a good credit rating, which list has bonds ord

27、ered from the one that pays the most interest to the one that pays the least interest?a. corporate bond, municipal bond, U.S. government bondb. corporate bond, U.S. government bond, municipal bondc. municipal bond, U.S. government bond, corporate bondd. U.S. government bond, municipal bond, corporat

28、e bondANS: B PTS: 1 DIF: 2 REF: 26-1TOP: Bonds and risk MSC: Interpretive 26. Other things the same, as the maturity of a bond becomes longer, the bond will paya. less interest because it has less risk.b. less interest because it has more risk.c. more interest because it has more riskd. There is no

29、relation between term to maturity and risk.ANS: C PTS: 1 DIF: 2 REF: 26-1TOP: Bonds and risk MSC: Interpretive 27. Suppose the city of Cincinnati has a high credit rating.a. The high credit rating and the tax status of municipal bonds should both make the interest rate lower than otherwise.b. The hi

30、gh credit rating and the tax status of municipal bonds should both make the interest rate higher than otherwise.c. The high credit rating should make the interest rate higher than otherwise. The tax status of municipal bonds should make the interest rate lower than otherwise.d. The high credit ratin

31、g should make the interest rate lower than otherwise. The tax status of municipal bonds should make the interest rate higher than otherwise.ANS: A PTS: 1 DIF: 2 REF: 26-1TOP: Interest on bonds MSC: Applicative 28. Municipal bonds pay a relatively a. low rate of interest because of their high-default

32、 risk and because the interest they pay is subject to federal income tax.b. low rate of interest because of their low-default risk and because the interest they pay is not subject to federal income tax.c. high rate of interest because of their high-default risk and because federal taxes must be paid o