货币银行学习题 章节 (3).pdf

21 Chapter 3 Financial Instruments Markets and Institutions D2 Interpretive 1 Financial markets serve as the A primary source of funds for financial intermediaries B means of converting cash into tangible assets C transmission mechanism between savers and borrowers D economic system s ultimate source of funds Answer C D2 Factual 2 An indirect flow of funds occurs when A funds flow from saver lenders to borrower spenders through financial intermediaries B funds flow from saver lenders to borrower spenders through financial markets C funds flow to saver lenders from borrower spenders through financial intermediaries D funds flow to saver lenders from borrower spenders through financial markets Answer A D1 Applied 3 An example of direct finance would be when A a person purchases a certificate of deposit from a bank B a person buys a life insurance policy C a person buys 100 shares of stock from a corporation D a bank makes a loan to a customer Answer C D2 Interpretive 4 Which of the following statements is not true A Financial and intermediated markets are conduits through which funds are channeled B Borrower spenders tend to benefit because they earn interest or dividends on their funds C Without financial and intermediated markets savers would have no choice but to hoard their excess money D When funds flow through intermediaries the process is indirect Answer B 22 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D1 Factual 5 The largest group of saver lenders in the financial system is A businesses B government C households D financial intermediaries Answer C D2 Factual 6 Most borrower spenders in the financial system are A businesses and governments B banks and thrift institutions C households and foreigners D governments and financial institutions Answer A D2 Factual 7 are never borrower spenders A Governmental bodies B Business firms C Households D All of the above can be borrower spenders Answer D D1 Interpretive 8 An important role of financial institutions is to A provide borrowers with low interest rates B provide information to lenders about the quality of financial claims issued C buy primary securities D control the money supply Answer B D2 Interpretive 9 An efficient financial system A must disseminate information to lenders about the quality of financial claims issued B provides minimal information about financial markets C provides perfect information regarding investment opportunities to savers D does not provide any information to borrowers Answer A D1 Factual 10 When borrower spenders raise funds in financial markets they issue new securities in the A primary market B secondary market C third market D fourth market Answer A Chapter 3 Financial Instruments Markets and Institutions 23 D2 Applied 11 Which of the following is a primary market transaction A Sally Wither purchases 100 shares of IBM through her broker B Kold Co issues 1 million new shares through Morgan Stanley C Bob Hill sells 1 000 shares of Disney directly to his friend D Kip Peters sells 1 000 shares of Dush Inc which he bought in an IPO last month through his broker Answer B D1 Factual 12 A secondary market is one in which A new securities are issued B financial intermediaries make loans C savers place funds in financial intermediaries D existing securities can be bought and sold Answer D D1 Factual 13 The most prominent financial market is A the New York Stock Exchange B the American Stock Exchange C the Nasdaq D the over the counter market Answer A D1 Factual 14 Investment banks specialize in information regarding A commodities B certificates of deposit C demand deposits D primary securities Answer D D1 Factual 15 The issuer of a bond is a A borrower B creditor C saver D lender Answer A 24 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D1 Factual 16 is not a cash flow associated with a bond A Payment to purchase a bond B Periodic interest payments C Periodic dividend payments D Repayment of the face value when the bond matures Answer C D1 Factual 17 Traditionally bonds have been issued with coupons that bondholders redeem every A year B quarter C six months D month Answer C D1 Factual 18 Bonds without a maturity date are called A zero coupon bonds B preferred bonds C common bonds D consols Answer D D1 Factual 19 Bonds that pay no interest are A zero coupon bonds B coupon securities C perpetuities D tax exempts Answer A D1 Factual 20 Which of the following bonds are called tax exempts A Municipal bonds B U S savings bonds C U S Treasury bonds D Consols Answer A D1 Interpretive 21 To the stockholder corporate stock represents A a source of fixed interest income B a loan C ownership D a guaranteed return of principal Answer C Chapter 3 Financial Instruments Markets and Institutions 25 D2 Interpretive 22 A major difference between stocks and bonds is that A bonds pay their owners dividends while stocks pay interest B bonds pay their owners interest while stocks pay dividends C the interest on a bond depends on the earnings of the corporation and is not guaranteed while dividends on stock are legally required D bonds represent ownership while stock represent debt Answer B D3 Interpretive 23 Which of the following statements is true A Convertible preferred stockholders receive quarterly interest payments B Common stockholders receive a fixed dividend and they are entitled to it before preferred stockholders get anything C Convertible preferred stock can be converted into preferred stock at a predetermined price D Many buyers of common stock are more interest in capital gains than in dividends Answer D D1 Factual 24 Which of the following investments offers fixed dividend payments A Consols B Zero coupon bonds C Preferred stock D Convertible stock Answer C D2 Factual 25 Which of the following investments does not make interest payments annually but is sold at a discount with the face value of the security paid at maturity A Preferred stock B Preferred bonds C Zero coupon bonds D Convertible preferred stock Answer C D2 Factual 26 All financial securities share the characteristic that they represent a claim to future A interest income B ownership C cash flows D dividend payments Answer C 26 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D1 Factual 27 The most popular and widely followed stock index is the A New York Stock Exchange Composite Index B S P 500 Index C Dow Jones Industrial Average D Nasdaq Composite Index Answer C D1 Factual 28 A market in which stock prices are rising is called a A bull market B bear market C pig market D primary market Answer A D2 Interpretive 29 Which of the following is not true regarding mortgages A They are debt instruments B FHA VA mortgages are insured by government agencies C They always have a fixed mortgage rate D They often have maturities between 25 and 30 years Answer C D2 Factual 30 Mortgages carry an uncertain flow of cash because A borrowers often default on home loans B mortgages are short term debt instruments C homeowners often prepay their mortgage loans D lenders cannot legally fix interest rates Answer C D2 Interpretive 31 FHA VA mortgages differ from conventional mortgages in that A the mortgaged land and building are collateral for conventional mortgages but not for FHA VA mortgages B FHA VA mortgages are insured by the federal government while conventional mortgages are not C FHA VA mortgages involve real estate while conventional mortgages may or may not involve real estate D conventional mortgages run for 25 30 years but FHA VA are considerably shorter in duration Answer B Chapter 3 Financial Instruments Markets and Institutions 27 D3 Factual 32 One of the most popular types of mortgage pools is insured by the A Federal Deposit Insurance Corporation B Federal Savings and Loan Insurance Corporation C Federal Home Loan Bank Board D U S Department of Housing and Urban Development Answer D D2 Factual 33 Mortgage pools are often referred to as A municipal securities B pass through securities C preferred mortgages D common securities Answer B D2 Factual 34 Funds that used to flow through intermediated markets and now flow through financial markets are A intermediated B indirectly financed C securitized D saved Answer C D2 Factual 35 An example of a derivative financial instrument is a n A corporate bond B option contract on U S Treasury bonds C variable rate mortgage D preferred stock Answer B D3 Applied 36 An investor who anticipates that interest rates will rise should A buy a variable rate bond B buy preferred corporate stock C buy a bond futures contract D sell a bond futures contract Answer D 28 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D2 Factual 37 A put option gives the owner the A right to sell the underlying asset at a fixed price B right to buy the underlying asset at a fixed price C obligation to sell the underlying asset at a fixed price D obligation to buy the underlying asset at a fixed price Answer A D2 Factual 38 A call option gives the owner the A right to sell the underlying asset at a fixed price B right to buy the underlying asset at a fixed price C obligation to sell the underlying asset at a fixed price D obligation to buy the underlying asset at a fixed price Answer B D3 Applied 39 Peter Lemmings purchased a call option on XYZ Stock with a strike price pf 50 A Peter will exercise the option if the price of XYZ Stock at expiration is 30 B Peter will exercise the option if the price of XYZ Stock at expiration is above 50 C Peter will let the option expire if the price of XYZ Stock at expiration is 60 D Peter will buy a put option to close out his position if the price of XYZ Stock at expiration is above 60 Answer B D1 Factual 40 That segment of the market for securities which have original maturities of more than one year is called the A stock market B derivative securities market C money market D capital market Answer D D1 Factual 41 That segment of the market for securities which have original maturities of less than one year is called the A stock market B derivative securities market C money market D capital market Answer C Chapter 3 Financial Instruments Markets and Institutions 29 D2 Applied 42 An example of a financial instrument in the capital market is A commercial paper B a corporate bond C a negotiable bank CD D a U S Treasury bill Answer B D2 Applied 43 An example of a financial instrument in the money market is a A residential mortgage B corporate bond C negotiable bank CD D U S government agency security Answer C D2 Interpretive 44 Besides differences in maturities the characteristic that distinguishes financial assets in the capital market from those in the money market is the level of A activity B liquidity C velocity D intermediation Answer B D2 Interpretive 45 The best strategy for an investor who believes that interest rates will fall in the near future would be to purchase A commercial paper B negotiable bank CDs C short term U S Treasury bills D long term U S Treasury bonds Answer D D2 Interpretive 46 A business firm that has temporary surplus funds is most likely to buy A U S Treasury bills B U S Treasury bonds C corporate stock D corporate bonds Answer A 30 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D3 Applied 47 Which of the following securities is least likely to be guaranteed by the full faith and credit of the federal government A A bond issued by a Federal Land Bank B A bond issued by the United States Postal Service C A note issued by the Federal National Mortgage Association D A security issued by a Federal Home Loan Bank Answer B D2 Interpretive 48 Commercial banks participate in the money markets as A lenders only B borrowers only C both lenders and borrowers D trustees only Answer C D1 Factual 49 Commercial paper represents the A capital assets of business firms B short term liabilities of the most creditworthy business firms and finance companies C long term liabilities of investment banks D short term liabilities of commercial banks Answer B D2 Applied 50 Commercial paper is mostly held by A corporations B commercial banks C bond mutual funds D money market mutual funds Answer D D2 Applied 51 Which of the following will suffer the smallest decrease in value as a result of rising interest rates A A U S Treasury bond B A corporate bond C A negotiable CD D A commercial mortgage pool Answer C Chapter 3 Financial Instruments Markets and Institutions 31 D2 Applied 52 Which of the following will suffer the largest loss in value from rising interest rates A A U S Treasury bill B Commercial paper C A negotiable CD D A corporate bond Answer D D2 Interpretive 53 All financial intermediaries acquire funds by A selling bonds B selling stocks C issuing their own liabilities D charging interest Answer C D1 Interpretive 54 Which of the following is not a major purpose of financial intermediaries A Transaction costs B Diversification C Information D All of the above are major purposes of financial intermediaries Answer D D2 Interpretive 55 Unlike most companies financial intermediaries A carry financial instruments only on the liabilities side of their balance sheet B carry financial instruments only on the asset side of their balance sheet C carry financial instruments on both sides of the balance sheet D have no debt Answer C D3 Applied 56 If an individual sells a U S Treasury bill and uses the funds to open a money market deposit account it is an example of A consumption B direct finance C tax avoidance D financial intermediation Answer D 32 Ritter Silber Udell Money Banking and Financial Markets Eleventh Edition D3 Interpretive 57 If financial intermediation were substantially reduced the likely initial effect on individual investors would be A higher inflation B a shift to a barter economy C a reduction in disintermediation D increased risk Answer D D2 Interpretive 58 Saver lenders often choose to invest in financial intermediaries because the intermediaries A reduce transactions costs for saver lenders B increase risk by diversification C produce information on saver lenders D engage in direct finance Answer A D2 Factual 59 An index fund A is a bond fund that provides diversification B is a mutual fund that buys the stocks that compose a well known index C is a growth fund that reduces transaction costs D produces information on the securities it invests in Answer B D1 Interpretive 60 Financial institutions are just like other firms in that they attempt to maximize A total assets B total liabilities C capital D profits Answer D D2 Interpretive 61 Which of these financial institutions is the most likely to have a portfolio very similar to those of life insurance companies A Money market mutual funds B Mutual savings banks C Private noninsured pension funds D Property and casualty insurance companies Answer C Chapter 3 Financial Instruments Markets and Institutions 33 D2 Interpretive 62 Which of these institutions has the greatest degree of certainty regarding the timing of liability payouts A Life insurance companies B Property and casualty insurance companies C Money market mutual funds D Credit unions Answer A D2 Interpretive 63 Mutual funds usually do not invest in A the stock market B the municipal bond market C the residential mortgage market D Mutual funds invest in all of the abo