曼昆经济学题库chapter18.docx

1、曼昆经济学题库chapter18Chapter 18Saving, Investment, and the Financial SystemMULTIPLE CHOICE1. When opening a restaurant you may need to by ovens, freezers, tables, and cash registers. Economists call these expenditures a. capital investment. b. investment in human capital. c. business consumption expendit

2、ures. d. None of the above are correct.ANSWER: a. capital investment.TYPE: M DIFFICULTY: 1 SECTION: 13.02. When a country saves a larger portion of its GDP, it will have a. less investment, and so have more capital and higher productivity. b. less investment, and so have less capital and higher prod

3、uctivity. c. more investment, and so have more capital and higher productivity. d. more investment, and so have less capital and higher productivity.ANSWER: c. more investment, and so have more capital and higher productivity.TYPE: M DIFFICULTY: 1 SECTION: 13.03. Institutions in the economy that hel

4、p to match one persons saving with another persons investment are collectively called the a. Federal Reserve system. b. banking system. c. monetary system. d. financial system.ANSWER: d. financial system.TYPE: M DIFFICULTY: 1 SECTION: 13.04. Alfreds income exceeds his expenditures. Alfred is a a. sa

5、ver 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 demands money from the financial system.ANSWER: b. saver who supplies money to the financial system.TYPE: M DIFFICULTY: 1 SEC

6、TION: 13.15. Lucy wants to start her own psychiatric practice, but her expenditures exceed her income. Lucy is a a. 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 supplie

7、s money to the financial system.ANSWER: c. borrower who demands money from the financial system.TYPE: M DIFFICULTY: 1 SECTION: 13.16. A bond is a a. financial intermediary. b. certificate of indebtedness. c. certificate of partial ownership in an enterprise. d. None of the above are correct.ANSWER:

8、b. certificate of indebtedness.TYPE: M DIFFICULTY: 1 SECTION: 13.17. A certificate of indebtedness that specifies the obligations of the borrower to the holder is called a a. bond. b. stock. c. mutual fund. d. All of the above are correct.ANSWER: a. bond.TYPE: M DIFFICULTY: 1 SECTION: 13.18. If the

9、governments expenditures exceeded its receipts, it would likely a. lend money to a bank or other financial intermediary. b. borrow money from a bank or other financial intermediary. c. directly buy bonds from the public. d. directly sell bonds to the public.ANSWER: d. directly sell bonds to the publ

10、ic.TYPE: M DIFFICULTY: 2 SECTION: 13.19. If Microsoft sells a bond they are a. borrowing directly from the public. b. borrowing indirectly from the public. c. lending directly to the public. d. lending indirectly to the public.ANSWER: a. borrowing directly from the public.TYPE: M DIFFICULTY: 2 SECTI

11、ON: 13.110. 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 bond refers to the person selling the bond. c. A bond buyer cannot sell a bond before it matures. d. None of the above are correct.ANSWER: d. None of the above are c

12、orrect.TYPE: M DIFFICULTY: 1 SECTION: 13.111. Which of the following is NOT a nonsensical headline? a. British perpetuities about to mature. b. Disney issues new bonds with term of $1,000 each. c. Government bonds currently pay less interest than corporate bonds. d. Standard and Poors judges new jun

13、k bond to have very low credit risk.ANSWER: c. Government bonds currently pay less interest than corporate bonds.TYPE: M DIFFICULTY: 2 SECTION: 13.112. The length of time until a bond matures is called the a. duration. b. term. c. maturity. d. intermediation.ANSWER: b. term.TYPE: M DIFFICULTY: 1 SEC

14、TION: 13.113. A perpetuity is distinguished from other bonds in that it a. pays continuously compounded interest. b. pays interest only when it matures. c. never matures. d. will be used to purchase another bond when it matures unless the owner specifies otherwise.ANSWER: c. never matures.TYPE: M DI

15、FFICULTY: 1 SECTION: 13.114. 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 buy bonds to raise funds. d. All of the above are correct.ANSWER: a. Some bonds have terms as short

16、as a few months.TYPE: M DIFFICULTY: 1 SECTION: 13.115. 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 been resol

17、d many times. d. None of the above are correct.ANSWER: d. None of the above are correct.TYPE: M DIFFICULTY: 1 SECTION: 13.116. Long-term bonds are generally a. 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 th

18、an short-term bonds and so pay higher interest. d. more risky than short-term bonds and so pay lower interest.ANSWER: c. more risky than short-term bonds and so pay higher interest.TYPE: M DIFFICULTY: 1 SECTION: 13.117. Compared to long-term bonds, other things the same, short-term bonds generally h

19、ave a. more risk and so pay higher interest. b. less risk 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.ANSWER: b. less risk and so pay lower interest.TYPE: M DIFFICULTY: 1 SECTION: 13.118. On which bond is default most

20、likely? a. a junk bond b. a municipal bond c. a U.S. government bond d. a corporate bond issued by Proctor and Gamble.ANSWER: a. a junk bondTYPE: M DIFFICULTY: 1 SECTION: 13.119. Assuming that the bonds below have the same term and principal and that the state or local government which issues the mu

21、nicipal bond has a good credit rating, which list has bonds ordered from the one that pays the most interest to the one that pays the least interest? a. corporate bond, municipal bond, U.S. government bond b. corporate bond, U.S. government bond, municipal bond c. municipal bond, U.S. government bon

22、d, corporate bond d. U.S. government bond, municipal bond, corporate bondANSWER: b. corporate bond, U.S. government bond, municipal bondTYPE: M DIFFICULTY: 2 SECTION: 13.120. Other things the same, as the maturity of a bond becomes longer, the bond will pay a. less interest because it has less risk.

23、 b. less interest because it has more risk. c. more interest because it has more risk d. There is no relation between term to maturity and risk.ANSWER: c. more interest because it has more riskTYPE: M DIFFICULTY: 2 SECTION: 13.121. Which of the following bond buyers did NOT buy the bond that best me

24、t their objective? a. Mia wanted a bond with a high interest rate, regardless of the risk. She purchased a junk bond. b. Anna wanted a bond that would let her best avoid taxes. She purchased a municipal bond. c. Bill wanted to purchase a bond that was unlikely to have default. He purchased a bond th

25、at Standards and Poors rated a low credit risk. d. To reduce risk, Toby purchased a long-term bond rather than a short-term one.ANSWER: d. To reduce risk, Toby purchased a long-term bond rather than a short-term one.TYPE: M DIFFICULTY: 1 SECTION: 13.122. Stephanie is interested only in the rate of i

26、nterest and is willing to take a great deal of risk in exchange for a high return. She should look for bonds with a. tax exemptions and short terms. b. tax exemptions and long terms. c. no tax exemptions and short terms. d. no tax exemptions and long terms.ANSWER: d. no tax exemptions and long terms

27、.TYPE: M DIFFICULTY: 1 SECTION: 13.123. Municipal bonds pay a a. low rate of interest because of their high-default 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 f

28、ederal income tax. c. high rate of interest because of their high-default risk and because federal taxes must be paid on the interest they pay. d. high rate of interest because of their low-default risk and because the interest they pay is not subject to federal income tax.ANSWER: b. low rate of int

29、erest because of their low-default risk and because the interest they pay is not subject to federal income tax.TYPE: M DIFFICULTY: 2 SECTION: 13.124. Which bond would you expect to pay the highest interest rate? a. a bond issued by the U.S. government b. a bond issued by General Motors c. a bond iss

30、ued by New York State d. a bond issued by a new restaurant chainANSWER: d. a bond issued by a new restaurant chainTYPE: M DIFFICULTY: 1 SECTON: 26.125. Jerry has the choice of two bonds, one that pays 3 percent interest and one that pays 6 percent interest. Which of the following is most likely? a.

31、The 6 percent bond is less risky than the 3 percent bond. b. The 6 percent bond is a U.S. government bond, and the 3 percent bond is a junk bond. c. The 6 percent bond has a longer term than the 3 percent bond. d. The 6 percent bond is a municipal bond, and the 3 percent bond is a U.S. government bo

32、nd.ANSWER: c. The 6 percent bond has a longer term than the 3 percent bond.TYPE: M DIFFICULTY: 2 SECTION: 13.126. Lacey, a financial advisor has told her clients the following things. Which of her statements is incorrect? a. “U.S. government bonds generally have a lower rate of interest than municipal bonds.” b. “The interest rece