金融市场与机构 24.docx

1、金融市场与机构 241Chapter 24Risk Management in Financial Institutions1Multiple Choice Questions1. Banks face the problem of _ in loan markets because bad credit risks are the ones most likely to seek bank loans.(a) adverse selection(b) moral hazard(c) moral suasion(d) intentional fraudAnswer: A2. If borrow

2、ers with the most risky investment projects are more likely to seek bank loans than borrowers with the safest investment projects, banks face the problem of(a) adverse credit risk.(b) adverse selection.(c) moral hazard.(d) conflict of interest.Answer: B3. Because borrowers, once they have a loan, ar

3、e more likely to invest in high-risk investment projects, banks face the(a) adverse selection problem.(b) lemon problem.(c) adverse credit risk problem.(d) moral hazard problem.Answer: D4. Banks attempts to solve adverse selection and moral hazard problems help explain loan management principles suc

4、h as(a) screening and monitoring of loan applicants.(b) collateral and compensating balances.(c) credit rationing.(d) all of the above.(e) only (a) and (b) of the above.Answer: D5. In one sense, _ appears surprising since it means that the bank is not _ its portfolio of loans and thus is exposing it

5、self to more risk.(a) specialization in lending; diversifying(b) specialization in lending; rationing(c) credit rationing; diversifying(d) screening; rationingAnswer: A6. From the standpoint of _, specialization in lending is surprising but makes perfect sense when one considers the _ problem.(a) mo

6、ral hazard; diversification(b) diversification; moral hazard(c) adverse selection; diversification(d) diversification; adverse selectionAnswer: D7. Provisions in loan contracts that proscribe borrowers from engaging in specified risky activities are called(a) proscription bonds.(b) collateral clause

7、s.(c) restrictive covenants.(d) liens.Answer: C8. Banks attempt to screen good from bad credit risks to reduce the incidence of loan defaults. To do this, banks(a) specialize in lending to certain industries or regions.(b) write restrictive covenants into loan contracts.(c) expend resources to acqui

8、re accurate credit histories of their potential loan customers.(d) do all of the above.Answer: D9. A banks commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rate that is tied to a market interest rate is called(a) credit rationing.(b)

9、 a line of credit.(c) continuous dealings.(d) none of the above.Answer: B10. Lines of credit and long-term relationships between banks and their customers(a) reduce the costs of information collection.(b) make it easier for banks to screen good from bad risks.(c) enable banks to deal with moral haza

10、rd contingencies that are neither anticipated nor specified in restrictive covenants.(d) do all of the above.(e) do only (a) and (b) of the above.Answer: D11. Compensating balances(a) are a particular form of collateral commonly required on commercial loans.(b) are a required minimum amount of funds

11、 that a borrower (i.e., a firm receiving a loan) must keep in a checking account at the bank.(c) allow banks to monitor firms check payment practices which can yield information about their borrowers financial conditions.(d) all of the above.Answer: D12. A bank that wants to monitor the check paymen

12、t practices of its commercial borrowers, so that moral hazard can be prevented, will require borrowers to(a) place a bank officer on their board of directors.(b) place a corporate officer on the banks board of directors.(c) keep compensating balances in a checking account at the bank.(d) do all of t

13、he above.(e) do only (a) and (b) of the above.Answer: C13. Of the following methods that banks might use to reduce moral hazard problems, the one not legally permitted in the United States is the requirement that(a) firms keep compensating balances at the banks from which they obtain their loans.(b)

14、 firms place on their board of directors an officer from the bank.(c) loan contracts include restrictive covenants.(d) individuals provide detailed credit histories to bank loan officers.Answer: B14. When a lender refuses to make a loan, although borrowers are willing to pay the stated interest rate

15、 or even a higher rate, it is said to engage in(a) constrained lending.(b) strategic refusal.(c) credit rationing.(d) collusive behavior.Answer: C15. When a lender refuses to make a loan, even though borrowers are willing to pay the stated interest rate or even a higher rate, it is said to engage in

16、(a) specialized lending.(b) strategic refusal.(c) diversified lending.(d) coercive behavior.(e) none of the above.Answer: E16. Credit rationing occurs when a bank(a) refuses to make a loan of any amount to a borrower, even when she is willing to pay a higher interest rate.(b) restricts the amount of

17、 a loan to less than the borrower would like.(c) does either (a) or (b) of the above.(d) does neither (a) nor (b) of the above.Answer: C17. Because larger loans create greater incentives for borrowers to engage in undesirable activities that make it less likely they will repay the loans, banks(a) ra

18、tion credit, granting borrowers smaller loans than they have requested.(b) ration credit, charging higher interest rates to borrowers who want large loans than to those who want small loans.(c) ration credit, charging higher fees as a percentage of the loan to borrowers who want large loans than to

19、those who want small loans.(d) do none of the above.Answer: A18. When banks offer borrowers smaller loans than they have requested, banks are said to(a) shave credit.(b) discount the loan.(c) raze credit.(d) ration credit.Answer: D19. Which of the following are not rate-sensitive assets?(a) Securiti

20、es with a maturity of less than one year.(b) Variable-rate mortgages.(c) Fixed-rate mortgages.(d) All of the above are rate-sensitive assets.(e) None of the above is a rate-sensitive asset.Answer: C20. Liabilities that are partially, but not fully, rate-sensitive include(a) checkable deposits.(b) fe

21、deral funds.(c) non-negotiable CDs.(d) fixed-rate mortgages.(e) money market deposit accounts.Answer: A21. If a bank has more rate-sensitive liabilities than rate-sensitive assets, then a(n) _ in interest rates will _ bank profits.(a) increase; increase(b) increase; reduce(c) decline; reduce(d) decl

22、ine; not affectAnswer: B22. If a bank has more rate-sensitive assets than rate-sensitive liabilities, then a(n) _ in interest rates will _ bank profits.(a) increase; increase(b) increase; reduce(c) decline; increase(d) decline; not affectAnswer: A23. If a bank has _ rate-sensitive assets than rate-s

23、ensitive liabilities, then a(n) _ in interest rates will increase bank profits.(a) more; decline(b) more; increase(c) less; increase(d) both (a) and (c)Answer: B24. The difference between rate-sensitive liabilities and rate-sensitive assets is known as the(a) duration.(b) interest-sensitivity index.

24、(c) interest-rate risk index.(d) gap.Answer: DTable 24.1First National BankAssetsLiabilitiesRate-sensitive$20 million$50 millionFixed-rate$80 million$40 million25. Referring to Table 24.1, First National Bank has a gap of _.(a) 30(b) +30(c) 60(d) 0Answer: A26. Referring to Table 24.1, if interest ra

25、tes rise by 5 percentage points, then bank profits (measured using gap analysis) will(a) decline by $0.5 million.(b) decline by $1.5 million.(c) decline by $2.5 million.(d) increase by $1.5 million.Answer: B27. Refer to Table 24.1. Assuming that the average duration of its assets is five years, whil

26、e the average duration of its liabilities is three years, a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to _ by _ of the total original asset value.(a) increase; 11 percent(b) decline; 11 percent(c) increase; 10 percent(d) decline; 5 percentAnswer:

27、BTable 24.2First National BankAssetsLiabilitiesRate-sensitive$40 million$50 millionFixed-rate$60 million$40 million28. Referring to Table 24.2, First National Bank has a gap of _.(a) 10(b) 10(c) 20(d) 0Answer: A29. Referring to Table 24.2, if interest rates rise by 5 percentage points, then bank pro

28、fits (measured using gap analysis) will(a) decline by $0.5 million.(b) decline by $1.5 million.(c) decline by $2.5 million.(d) increase by $2.0 million.Answer: A30. Refer to Table 24.2. Assuming that the average duration of the banks assets is four years, while the average duration of its liabilitie

29、s is three years, a rise in interest rates from 5 percent to 10 percent will cause the net worth of First National to _ by _ of the total original asset value.(a) decline; 5 percent(b) decline; 1.3 percent(c) decline; 6.2 percent(d) increase; 5 percentAnswer: C31. If First State Bank has a gap equal

30、 to a positive $20 million, then a 5 percentage point drop in interest rates will cause profits to(a) increase by $10 million.(b) increase by $1.0 million.(c) decline by $10 million.(d) decline by $1.0 million.Answer: D32. If First National Bank has a gap equal to a negative $30 million, then a 5 pe

31、rcentage point increase in interest rates will cause profits to(a) increase by $15 million.(b) increase by $1.5 million.(c) decline by $15 million.(d) decline by $1.5 million.Answer: D33. Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap times the change in the interest rate is called(a) basic duration analysis.(b) basic gap analysi