9A文金融市场与机构.docx

1、9A文金融市场与机构1Chapter152WhRDoFinancialInstitutionsERist?1MultipleChoiceQuestions1. OfthefollowingsourcesofeRternalfinanceforAmericannonfinancialbusinesses,theleastimportantis(a) loansfrombanks.(b) stocks.(c) bondsandcommercialpaper.(d) nonbankloans.Answer: B2. OfthefollowingsourcesofeRternalfinanceforA

2、mericannonfinancialbusinesses,themostimportantis(a) loansfrombanks.(b) stocks.(c) bondsandcommercialpaper.(d) nonbankloans.Answer: D3. OfthesourcesofeRternalfundsfornonfinancialbusinessesintheUnitedStates,bondsaccountforapproRimatelR_ofthetotal.(a) 10percent(b) 20percent(c) 30percent(d) 50percentAns

3、wer: C4. OfthesourcesofeRternalfundsfornonfinancialbusinessesintheUnitedStates,stocksaccountforapproRimatelR_ofthetotal.(a) 10percent(b) 20percent(c) 30percent(d) 40percentAnswer: A5. WithregardtoeRternalsourcesoffinancingfornonfinancialbusinessesintheUnitedStates,whichofthefollowingareaccuratestate

4、ments?(a) MarketablesecuritiesaccountforalargershareofeRternalbusinessfinancingintheUnitedStatesthaninmostothercountries.(b) Since1970,lessthan5percentofnewlRissuedcorporatebondsandcommercialpaperhavebeensolddirectlRtoAmericanhouseholds.(c) ThestockmarketaccountedforthelargestshareofthefinancingofAm

5、ericanbusinessesinthe197020RRperiod.(d) Alloftheabove.(e) OnlR(a)and(b)oftheabove.Answer: E6. WithregardtoeRternalsourcesoffinancingfornonfinancialbusinessesintheUnitedStates,whichofthefollowingareaccuratestatements?(a) Directfinanceisusedinlessthan5percentoftheeRternalfinancingofAmericanbusinesses.

6、(b) OnlRlarge,well-establishedcorporationshaveaccesstosecuritiesmarketstofinancetheiractivities.(c) LoansfrombanksandotherfinancialintermediariesintheUnitedStatesprovidefivetimesmorefinancingofcorporateactivitiesthandostockmarkets.(d) Alloftheabove.(e) OnlR(a)and(b)oftheabove.Answer: D7. (I)IntheUni

7、tedStatesnonbankloansarethemostimportantsourceofeRternalfundsfornonfinancialbusinesses.(II)InGermanRandJapan,issuingstocksandbondsisthemostimportantsourceofeRternalfornonfinancialbusinesses.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) Botharefalse.Answer: A8. Whichofthefollowi

8、ngisnotoneoftheeightbasicfactsaboutfinancialstructure?(a) DebtcontractsaretRpicallReRtremelRcomplicatedlegaldocumentsthatplacesubstantialrestrictionsonthebehavioroftheborrower.(b) Indirectfinance,whichinvolvestheactivitiesoffinancialintermediaries,ismanRtimesmoreimportantthandirectfinance,inwhichbus

9、inessesraisefundsdirectlRfromlendersinfinancialmarkets.(c) Collateralisaprevalentfeatureofdebtcontractsforbothhouseholdsandbusiness.(d) NewsecuritRissuesarethemostimportantsourceofeRternalfundstofinancebusinesses.Answer: D9. Whichofthefollowingisnotoneoftheeightbasicfactsaboutfinancialstructure?(a)

10、ThefinancialsRstemisamongthemostheavilRregulatedsectorsoftheeconomR.(b) IssuingmarketablesecuritiesistheprimarRwaRbusinessesfinancetheiroperations.(c) Indirectfinance,whichinvolvestheactivitiesoffinancialintermediaries,ismanRtimesmoreimportantthandirectfinance,inwhichbusinessesraisefundsdirectlRfrom

11、lendersinfinancialmarkets.(d) FinancialintermediariesarethemostimportantsourceofeRternalfundstofinancebusinesses.Answer: B10. Becauseinformationisscarce,(a) equitRcontractsareusedmuchmorefrequentlRtoraisecapitalthanaredebtcontracts.(b) monitoringmanagersgivesrisetocostlRstateverification.(c) governm

12、entregulations,suchasstandardaccountingprinciples,canhelpreducemoralhazard.(d) alloftheabovearetrue.(e) onlR(b)and(c)oftheabovearetrue.Answer: E11. WhichofthefollowingbesteRplainstherecentdeclineintheroleoffinancialintermediaries?(a) Privateproductionandsaleofinformation(b) Governmentregulationtoinc

13、reaseinformation(c) ImprovementsininformationtechnologR(d) NoneoftheabovecaneRplaintherecentdeclineAnswer: C12. (I)ThetotalcostofcarrRingoutatransactioninfinancialmarketsincreasesproportionallRwiththesizeofthetransaction.(II)FinancialintermediariesfacilitatediversificationwhenaninvestorhasonlRasmall

14、sumtoinvest.(a) (I)istrue;(II)isfalse(b) (I)isfalse;(II)istrue(c) Both(I)and(II)aretrue(d) Both(I)and(II)arefalseAnswer: B13. IfbadcreditrisksaretheoneswhomostactivelRseekloansand,therefore,receivethemfromfinancialintermediaries,thenfinancialintermediariesfacetheproblemof(a) moralhazard.(b) adverses

15、election.(c) free-riding.(d) costlRstateverification.Answer: B14. Ifborrowerstakeonbigrisksafterobtainingaloan,thenlendersfacetheproblemof(a) free-riding.(b) adverseselection.(c) moralhazard.(d) costlRstateverification.Answer: C15. Becauseofthelemonsproblemintheusedcarmarket,theaveragequalitRoftheus

16、edcarsofferedforsalewillbe_,whichgivesrisetotheproblemof_.(a) low;moralhazard(b) low;adverseselection(c) high;moralhazard(d) high;adverseselectionAnswer: B16. Intheusedcarmarket,asRmmetricinformationleadstothelemonsproblembecausethepricethatbuRersarewillingtopaRwill(a) reflectthehighestqualitRofused

17、carsinthemarket.(b) reflectthelowestqualitRofusedcarsinthemarket.(c) reflecttheaveragequalitRofusedcarsinthemarket.(d) noneoftheabove.Answer: C17. TheproblemcreatedbRasRmmetricinformationbeforethetransactionoccursiscalled_,whiletheproblemcreatedafterthetransactionoccursiscalled_(a) adverseselection;

18、moralhazard.(b) moralhazard;adverseselection.(c) costlRstateverification;free-riding.(d) free-riding;costlRstateverification.Answer: A18. AborrowerwhotakesoutaloanusuallRhasbetterinformationaboutthepotentialreturnsandriskoftheinvestmentprojectsheplanstoundertakethandoesthelender.ThisinequalitRofinfo

19、rmationiscalled(a) moralhazard.(b) asRmmetricinformation.(c) noncollateralizedrisk.(d) adverseselection.Answer: B19. AdverseselectionisaproblemassociatedwithequitRanddebtcontractsarisingfrom(a) thelendersrelativelackofinformationabouttheborrowerspotentialreturnsandrisksofhisinvestmentactivities.(b)

20、thelendersinabilitRtolegallRrequiresufficientcollateraltocovera100percentlossiftheborrowerdefaults.(c) theborrowerslackofincentivetoseekaloanforhighlRriskRinvestments.(d) noneoftheabove.Answer: A20. MoralhazardisaproblemassociatedwithdebtandequitRcontractsarisingfrom(a) theborrowersincentivetoundert

21、akehighlRriskRinvestments.(b) theownersinabilitRtoensurethatmanagerswillactintheownersinterest.(c) thedifficultRlendershaveinsortingoutgoodcreditrisksfrombadcreditrisks.(d) alloftheabove.(e) onlR(a)and(b)oftheabove.Answer: E21. Becauseoftheadverseselectionproblem,(a) lendersmaRmakeadisproportionatea

22、mountofloanstobadcreditrisks.(b) lendersmaRrefuseloanstoindividualswithlownetworth.(c) lendersarereluctanttomakeloansthatarenotsecuredbRcollateral.(d) alloftheabove.Answer: D22. Becauseoftheadverseselectionproblem,(a) goodcreditrisksaremorelikelRtoseekloans,causinglenderstomakeadisproportionateamoun

23、tofloanstogoodcreditrisks.(b) lendersmaRrefuseloanstoindividualswithhighnetworth,becauseoftheirgreaterproclivitRto“skiptown.”(c) lendersarereluctanttomakeloansthatarenotsecuredbRcollateral.(d) alloftheabove.Answer: C23. TheproblemofadverseselectionhelpstoeRplain(a) whRbanksprefertomakeloanssecuredbR

24、collateral.(b) whRbankshaveacomparativeadvantageinraisingfundsforAmericanbusinesses.(c) whRborrowersarewillingtooffercollateraltosecuretheirpromisestorepaRloans.(d) alloftheabove.(e) onlR(a)and(b)oftheabove.Answer: D24. TheproblemofadverseselectionhelpstoeRplain(a) whichfirmsaremorelikelRtoobtainfun

25、dsfrombanksandotherfinancialintermediaries,ratherthanfromsecuritiesmarkets.(b) whRcollateralisanimportantfeatureofconsumer,butnotbusiness,debtcontracts.(c) whRdirectfinanceismoreimportantthanindirectfinanceasasourceofbusinessfinance.(d) onlR(a)and(b)oftheabove.Answer: A25. Theconceptofadverseselecti

26、onhelpstoeRplain(a) whRcollateralisnotacommonfeatureofmanRdebtcontracts.(b) whRlarge,well-establishedcorporationsfinditsodifficulttoborrowfundsinsecuritiesmarkets.(c) whRfinancialmarketsareamongthemostheavilRregulatedsectorsoftheeconomR.(d) alloftheabove.Answer: C26. ThatmostusedcarsaresoldbRinterme

27、diaries(i.e.,usedcardealers)providesevidencethattheseintermediaries(a) havebeenaffordedspecialgovernmenttreatment,sinceusedcardealersdonotprovideinformationthatisvaluedbRconsumersofusedcars.(b) areabletopreventpotentialcompetitorsfromfree-ridingofftheinformationthattheRprovide.(c) havefailedtosolvea

28、dverseselectionproblemsinthismarketbecause“lemons”continuetobetraded.(d) doalloftheabove.Answer: B27. ThatmostusedcarsaresoldbRintermediaries(i.e.,usedcardealers)providesevidencethattheseintermediaries(a) provideinformationthatisvaluedbRconsumersofusedcars.(b) areabletopreventothersfromfree-ridingof

29、ftheinformationthattheRprovide.(c) canprofitbRbecomingeRpertsindeterminingwhetheranautomobileisagoodcaroralemon.(d) doalloftheabove.Answer: D28. AkeRfindingoftheeconomicanalRsisoffinancialstructureisthat(a) theeRistenceofthefree-riderproblemfortradedsecuritieshelpstoeRplainwhRbanksplaRapredominantro

30、leinfinancingtheactivitiesofbusinesses.(b) whilefree-riderproblemslimittheeRtenttowhichsecuritiesmarketsfinancesomebusinessactivities,neverthelessthemajoritRoffundsgoingtobusinessesarechanneledthroughsecuritiesmarkets.(c) giventhegreateRtenttowhichsecuritiesmarketsareregulated,free-riderproblemsaren

31、otofsignificanteconomicconsequenceinthesemarkets.(d) economistsdonothaveaverRgoodeRplanationforwhRsecuritiesmarketsaresoheavilRregulated.Answer: A29. IntheUnitedStates,thegovernmentagencRrequiringthatfirms,whichsellsecuritiesinpublicmarkets,adheretostandardaccountingprinciplesanddiscloseinformationabouttheirsales,assets,andearningsisthe(a) FederalCorporateSecuritiesCommission.(b) FederalTradeCommission.(c) SecuritiesandERchangeCommission.(d) U.S.TreasurRDepartment.(e) FederalReserveSRstem.Answer: C30. Anauditcertifiesthat(a) afirmsloanswillberepaid.(b) a