国际金融练习1ok

1、Chapter 1_Role of Financial Markets and Institutions1.Financial market participants who provide funds are calledA)deficit units.B)surplus units.C)primary units.D)secondary units.ANSWER: B 2.The main provider(s) of funds to the U.S. Treasury is (are)A)households and businesses.B)foreign financial ins

2、titutions.C)the Federal Reserve System.D)foreign nonfinancial sectors.ANSWER: A 3.Funds are provided to the initial issuer of securities in theA)secondary market.B)primary market.C)deficit market.D)surplus market.ANSWER: B 4.Which of the following is a capital market instrument?A)a sixmonth CDB)a th

3、reemonth Treasury billC)a tenyear bondD)an agreement for a bank to loan funds directly to a company for nine monthsANSWER: C 5.Money market securities generally have _. Capital market securities are typically expected to have a _.A)less liquidity; higher annualized returnB)more liquidity; lower annu

4、alized returnC)less liquidity; lower annualized returnD)more liquidity; higher annualized returnANSWER: D 6.If security prices fully reflect all available information, the markets for these securities areA)efficient.B)primary.C)overvalued.D)undervalued.ANSWER: A 7.If markets were _, investors could

5、use available information ignored by the market to earn abnormally high returns.A)perfectB)activeC)inefficientD)in equilibriumANSWER: C 8.The Securities Act of 1933A)required complete disclosure of relevant financial information for publicly offered securities in the primary market.B)declared tradin

6、g strategies to manipulate the prices of public secondary securities illegal.C)declared misleading financial statements for public primary securities illegal.D)required complete disclosure of relevant financial information for securities traded in the secondary market.E) all of the aboveANSWER: A 9.

7、The Securities Exchange Commission (SEC) was established by theA)Federal Reserve Act.B)McFadden Act.C)Securities Exchange Act of 1934.D)GlassSteagall Act.E)none of the aboveANSWER: C 10.Common stock is an example of a(n)A)debt security.B)money market security.C)equity security.D)a and bANSWER: C11.W

8、hen financial intermediaries “unbundle” a security issue, theyA)purchase the entire issue for their own investment.B)place the entire issue with a single large investor.C)spread the issue across several investors until the entire issue is sold.D)accumulate funds from each division or subsidiary that

9、 they own to purchase the securities; then, the securities are distributed to each of these divisions or subsidiaries.ANSWER: C 12.Without the participation of financial intermediaries in financial market transactions,A)information and transaction costs would be lower.B)transaction costs would be hi

10、gher but information costs would be unchanged.C)information costs would be higher but transaction costs would be unchanged.D)information and transaction costs would be higher.ANSWER: D 13.Which of the following is most likely to be described as a depository institution?A)finance companiesB)securitie

11、s firmsC)credit unionsD)pension fundsE)insurance companiesANSWER: C 14Which of the following is a nondepository financial institution?A)savings banksB)commercial banksC)savings and loan associationsD)mutual fundsANSWER: D 15.Which of the following distinguishes credit unions from commercial banks an

12、d savings institutions?A)Credit unions are nonprofit.B)Credit unions accept deposits but do not make loans.C)Credit unions make loans but do not accept deposits.D)Savings institutions restrict their business to members who share a common bond.ANSWER: A 16.When a securities firm acts as a broker, itA

13、)guarantees the issuer a specific price for newly issued securities.B)makes a market in specific securities by adjusting its own inventory.C)executes transactions between two parties.D)purchases securities for its own account.ANSWER: C 17.When a securities firm acts as a(n) _, it maintains a positio

14、n in securities.A)adviserB)dealerC)brokerD)none of the aboveANSWER: B18.Households with _ are served by _.A)deficient funds; depository institutions and finance companiesB)deficient funds; finance companies onlyC)savings; finance companies onlyD)savings; pension funds and finance companiesANSWER: A

15、19._ concentrate on mortgage loans.A)Finance companiesB)Commercial banksC)Savings institutionsD)Credit unionsANSWER: C 20._ securities have a maturity of one year or less; _ securities are generally more liquid.A)Money market; capital marketB)Money market; money marketC)Capital market; money marketD

16、)Capital market; capital marketANSWER: B 21.Which of the following is not a major investor in stocks?A)commercial banksB)insurance companiesC)mutual fundsD)pension fundsANSWER: A22.Circuit breakers are used toA)temporarily halt any new announcements that could adversely affect security prices.B)temp

17、orarily halt the trading of some securities or contracts.C)detect illegal insider trading.D)prevent corporations from issuing bonds if they already have too much debt.ANSWER: B 23.Organized exchanges are intended to facilitate theA)issuance of corporate securities in primary markets.B)issuance of go

18、vernment securities in primary markets.C)a and bD)sales of securities in the secondary markets.ANSWER: D 24.Which of the following is not an example of an organized exchange?A)the New York Stock ExchangeB)the Over-The-Counter MarketC)the American Stock ExchangeD)All of the above are organized exchan

19、ges.ANSWER: B 25.A five-year security was purchased two years ago by an investor who plans to resell it. The security will be sold by the investor in the so-calledA)secondary market.B)primary market.C)deficit market.D)surplus market.ANSWER: A26. When security prices fully reflect all available infor

20、mation, the markets for these securities are said to be efficient.A) TrueB) FalseANSWER:A27. If markets are perfect, securities buyers and sellers to not have full access to information and cannot always break down securities to the precise size they desire.A) TrueB) FalseANSWER:B28. A broker execut

21、es securities transactions between two parties and charges a fee reflected in the bid-ask spread.A) TrueB) FalseANSWER:A29. The euro increased business between European countries and created a more competitive environment in Europe.A) TrueB) FalseANSWER:A30. In recent years, financial institutions h

22、ave consolidated to capitalize on economies of scale and on economies of scope.A) TrueB) FalseANSWER:A31. Financial markets facilitating the flow of short-term funds with maturities of less than one year are known asA) money markets.B) capital markets.C) primary markets.D) secondary markets.E) none

23、of the aboveANSWER:A32. Which of the following transactions would not be considered a secondary market transaction?A) an individual investor purchases some existing shares of stock in IBM through his brokerB) an institutional investor sells some Disney stock through its broker C) Microsoft issues ne

24、w shares of common stock using its investment bankD) all of the above would occur on the New York Stock ExchangeANSWER:C33. If investors speculate in the underlying asset rather than derivative contracts on the underlying asset, they will probably achieve _ returns, and they are exposed to relativel

25、y _ risk.A) lower; lowerB) lower; higherC) higher; lowerD) higher; higherANSWER:A34. _ maintain a larger amount of assets than the other types of depository institutions.A) Credit unionsB) Commercial banksC) Life insurance companiesD) Savings institutionsANSWER:B35. The main source of funds for _ is proceeds from selling securities to households and businesses, while their main use of funds is providing loans to households and businesses.A) savings institutionsB) comm