ZUCC浙大学城市学院《金融市场学双语》课后作业整理

1、精选优质文档-倾情为你奉上Chapter 11. Give the definition of the terms below(a) financial intermediaryInstitutions (such as banks, insurance companies, mutual funds, pension funds, and finance companies)that borrow funds from people who have saved and then make loans to others.(b) federal reserve systemThe centr

2、al banking authority responsible for monetary policy in the United States.(c) financial crisisA major disruption in financial markets, characterized by shape declines in asset prices and the failures of many financial and nonfinancial firms. 2. Can you think of any financial innovation in

3、the past 10 years that has affected you personally? In what way?Nowadays, I am more likely to interact with an automatic teller machine when withdrawing cash and electronic payments become more popular because of the financial innovation.Chapter 21. Give the definition of the terms below(a) Euro bon

4、dBonds denominated in a currency other than that of the country in which they are sold.(b) risk sharingThe process by which financial intermediaries create and sell assets with risk characteristics that people are comfortable with and then use the funds they acquire by selling these assets to purcha

5、se other assets that may have far more risk.(c) money market mutual fundsFunds that accumulate investment dollars from a large group of people and then invest in short-term securities such as Treasury bills and commercial paper.2. Why do loan sharks worry less about moral hazard in connection with t

6、heir borrowers than some other lenders do?Loan sharks can threaten their borrowers with bodily harm if borrowers take actions that might jeopardize paying off the loan. Hence borrowers from a loan shark are less likely to engage in moral hazard. Chapter 111. Give the definition of the terms below(a)

7、 federal funds rateThe interest rate on overnight loans of deposits at the Federal Reserve.(b) LIBORThe interest rate charged on short-term funds bought or sold between large international banks.(c) call moneyCall money is minimum 5% short-term  repayable on demand, with a  

8、of one to fourteen days or overnight to fortnight. It is used for inter-bank transactions.2. The annualized yield is 3% for 91-day commercial paper, and 3.5% for 182-day commercial paper. What is the expected 91-day commercial paper rate 91 days from now? (tip: forward rate)Let A the expected 91 day

9、 rate , 91 days from now.Assume that the 182 day rate is the average of the current 91 day rate and the expected 91 day rate.(3+A)/2=3.53+A=7A=4Chapter 121. Give the definition of the terms below(a) bond indentureDocument accompanying a bond that spells out the details of the bond issue, such as cov

10、enants and sinking fund provisions. It states the leaders rights and privileges and the borrowers obligations.(b) CDSA credit default swap (CDS) is a  agreement that the seller of the CDS will compensate the buyer (usually the creditor of the reference loan) in the event of a loa

11、n  (by the debtor) or other .(c) general obligation bondBonds that are secured by the full faith and credit of the issuer, which includes the taxing authority of municipalities. 2. What kinds of risks confront the investors who hold municipal bonds?Default rates are higher during

12、 periods when the economy is weak.Unlike the federal government, local governments cannot print money, and there are real limits on how high they can raise taxes without driving the population away.Chapter 13NASDAQ:A computerized network that links dealers around the country together and provides pr

13、ice quotes on over-the-counter securities.floor trader:A floor trader is a member of a stock or commodities exchange who trades on the floor of that exchange for his or her own account.After-hours trading:After-hours trading refers to the buying and selling of securities completed outside of regular

14、 trading hours. 2.Suppose Microsoft is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, and analysts have set a one-year target price around $33.30 per share. What is the expected return of this stock?Expected return=(33.30+0.32-27.29)/27.29=23.2%Chapter 14insured mortgage

15、: Mortgage guaranteed by either the Federal Housing Administration or the Veterans Administration. These agencies guarantee that the bank making the loan will not suffer any losses if the borrower defaults.CMO: Securities classified by when prepayment is likely to occur. Investors may buy a group of

16、 CMOs that are likely to mature at a time that meets the investors needs.pass-through: pass-through relates to the transaction process itself, whether it involves a mortgage or other loan product. 2. What are discount points, and why do some mortgage borrowers choose to pay them?Discount points paid

17、 when a loan is initiated result in a reduced interest rate. If the borrower plans to hold on to the loan long enough for the value of the reduced interest rate to exceed the up-front cost of the points, it is a good idea to elect to pay them.Chapter 20fund family:fund family includes all the funds

18、managed by one investment company.MMMF: MMMF refers to an innovative investment vehicle originating in the United States. The fund absorbs small investments and USES them to invest in money markets.12b-1 fees: 12b-1 fees are fees paid by a mutual fund out of fund assets to cover distribution expense

19、s and sometimes shareholder service expenses.2.How does an index fund differ from an actively managed fund?Index fund do not require managers to choose securities. As a result, these funds tend to have far lower fees than other actively managed funds.Chapter 21annuity：If we think of life insurance as insuring against death, the annuity can be viewed as insuring against life.universal life: Universal life policies combine the benefits of the term policy with those of the whole life policies. The major benefit of the universal life policy is that the cash va