第4单元学习金融考习题西南财经大学天府学院

第4单元学习金融考习题西南财经大学天府学院第4单元学习金融考习题西南财经大学天府学院第4单元学习金融考习题西南财经大学天府学院合用标准文案FinancialMarketsandInstitutions,7e(Mishkin)Chapter4WhyDoInterestRatesChange?4.1MultipleChoiceAsthepriceofabond________andtheexpectedreturn________,bondsbecomemoreattractivetoinvestorsandthequantitydemandedrises.A)falls;risesfalls;fallsrises;risesrises;fallsAnswer:AThesupplycurveforbondshastheusualupwardslope,indicatingthatastheprice________ceteris,paribus,the________increases.A)falls;supplyB)falls;quantitysuppliedC)rises;supplyD)rises;quantitysuppliedAnswer:DWhenthepriceofabondisabovetheequilibriumprice,thereisexcess________inthebondmarketandthepricewill________.demand;risedemand;fallsupply;fallsupply;riseAnswer:C4)Whenthepriceofabondisbelowtheequilibriumprice,thereisexcess________inthebondmarketandthepricewill________.demand;risedemand;fallsupply;fallsupply;riseAnswer:AWhenthepriceofabondis________theequilibriumprice,thereisanexcesssupplyofbondsandthepricewill________.A)above;riseabove;fallbelow;fallbelow;rise优秀文档合用标准文案Answer:BWhenthepriceofabondis________theequilibriumprice,thereisanexcessdemandforbondsandthepricewill________.A)above;riseB)above;fallbelow;fallbelow;riseAnswer:DWhentheinterestrateonabondisabovetheequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.A)demand;riseB)demand;fallC)supply;fallsupply;riseAnswer:BWhentheinterestrateonabondisbelowtheequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.demand;risedemand;fallsupply;fallsupply;riseAnswer:DWhentheinterestrateonabondis________theequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.A)above;demand;fallB)above;demand;riseC)below;supply;fallD)above;supply;riseAnswer:AWhentheinterestrateonabondis________theequilibriuminterestrate,thereisexcess________inthebondmarketandtheinterestratewill________.A)below;demand;riseB)below;demand;fallbelow;supply;riseabove;supply;fallAnswer:C优秀文档合用标准文案11)Whenthedemandforbonds________orthesupplyofbonds________,interestratesrise.increases;increasesincreases;decreasesdecreases;decreasesdecreases;increasesAnswer:DWhenthedemandforbonds________orthesupplyofbonds________,interestratesfall.A)increases;increasesB)increases;decreasesC)decreases;decreasesD)decreases;increasesAnswer:BWhenthedemandforbonds________orthesupplyofbonds________,bondpricesrise.increases;decreasesdecreases;increasesdecreases;decreasesincreases;increasesAnswer:AWhenthedemandforbonds________orthesupplyofbonds________,bondpricesfall.A)increases;increasesincreases;decreasesdecreases;decreasesdecreases;increasesAnswer:DFactorsthatdeterminethedemandforanassetincludechangesintheA)wealthofinvestors.B)liquidityofbondsrelativetoalternativeassets.C)expectedreturnsonbondsrelativetoalternativeassets.D)riskofbondsrelativetoalternativeassets.alloftheabove.Answer:EThedemandforanassetrisesif________falls.A)riskrelativetootherassetsexpectedreturnrelativetootherassetsliquidityrelativetootherassetswealthAnswer:A优秀文档合用标准文案优秀文档合用标准文案17)Thehigherthestandarddeviationofreturnsonanasset,the________theasset's________.greater;risksmaller;riskgreater;expectedreturnsmaller;expectedreturnAnswer:ADiversificationbenefitsaninvestorbyA)increasingwealth.B)increasingexpectedreturn.C)reducingrisk.D)increasingliquidity.Answer:CInarecessionwhenincomeandwealtharefalling,thedemandforbonds________andthedemandcurveshiftstothe________.falls;rightfalls;leftrises;rightrises;leftAnswer:BDuringbusinesscycleexpansionswhenincomeandwealtharerising,thedemandforbonds________andthedemandcurveshiftstothe________.falls;rightfalls;leftrises;rightrises;leftAnswer:CHigherexpectedinterestratesinthefuture________thedemandforlong-termbondsandshiftthedemandcurvetothe________.A)increase;leftincrease;rightdecrease;leftdecrease;rightAnswer:C优秀文档合用标准文案22)Lowerexpectedinterestratesinthefuture________thedemandforlong-termbondsandshiftthedemandcurvetothe________increase;left.increase;right.decrease;left.decrease;right.Answer:BWhenpeoplebegintoexpectalargestockmarketdecline,thedemandcurveforbondsshiftstothe________andtheinterestrate________.A)right;fallsB)right;risesC)left;fallsD)left;risesAnswer:AWhenpeoplebegintoexpectalargerunupinstockprices,thedemandcurveforbondsshiftstothe________andtheinterestrate________.A)right;risesB)right;fallsC)left;fallsleft;risesAnswer:DAnincreaseintheexpectedrateofinflationwill________theexpectedreturnonbondsrelativetothaton________assets,andshiftthe________curvetotheleft.A)reduce;financial;demandB)reduce;real;demandC)raise;financial;supplyD)raise;real;supplyAnswer:BAdecreaseintheexpectedrateofinflationwill________theexpectedreturnonbondsrelativetothaton________assets.reduce;financialreduce;realraise;financialraise;realAnswer:D优秀文档合用标准文案27)Whentheexpectedinflationrateincreases,thedemandforbonds________,thesupplyofbonds________,andtheinterestrate________.increases;increases;risesdecreases;decreases;fallsincreases;decreases;fallsdecreases;increases;risesAnswer:DWhentheexpectedinflationratedecreases,thedemandforbonds________,thesupplyofbonds________,andtheinterestrate________.A)increases;increases;risesB)decreases;decreases;fallsC)increases;decreases;fallsD)decreases;increases;risesAnswer:CWhenbondpricesbecomemorevolatile,thedemandforbonds________andtheinterestrate________.A)increases;risesB)increases;fallsC)decreases;fallsdecreases;risesAnswer:DWhenbondpricesbecomelessvolatile,thedemandforbonds________andtheinterestrate________.A)increases;risesB)increases;fallsC)decreases;fallsD)decreases;risesAnswer:BWhenpricesinthestockmarketbecomemoreuncertain,thedemandcurveforbondsshiftstothe________andtheinterestrate________.right;risesright;fallsleft;fallsleft;risesAnswer:B优秀文档合用标准文案32)Whenstockpricesbecomelessvolatile,thedemandcurveforbondsshiftstothe________andtheinterestrate________.right;risesright;fallsleft;fallsleft;risesAnswer:DWhenbondsbecomemorewidelytraded,andasaconsequencethemarketbecomesmoreliquid,thedemandcurveforbondsshiftstothe________andtheinterestrate________.A)right;risesB)right;fallsC)left;fallsD)left;risesAnswer:BWhenbondsbecomelesswidelytraded,andasaconsequencethemarketbecomeslessliquid,thedemandcurveforbondsshiftstothe________andtheinterestrate________.A)right;risesB)right;fallsC)left;fallsleft;risesAnswer:DFactorsthatcausethedemandcurveforbondstoshifttotheleftincludeA)anincreaseintheinflationrate.B)anincreaseintheliquidityofstocks.C)adecreaseinthevolatilityofstockprices.D)alloftheabove.E)noneoftheabove.Answer:DFactorsthatcausethedemandcurveforbondstoshifttotheleftincludeadecreaseintheinflationrate.anincreaseinthevolatilityofstockprices.anincreaseintheliquidityofstocks.alloftheabove.onlyAandBoftheabove.Answer:C优秀文档合用标准文案37)Duringaneconomicexpansion,thesupplyofbonds________andthesupplycurveshiftstothe________.increases,leftincreases,rightdecreases,leftdecreases,rightAnswer:BDuringarecession,thesupplyofbonds________andthesupplycurveshiftstothe________.A)increases,leftB)increases,rightC)decreases,leftD)decreases,rightAnswer:CAnincreaseinexpectedinflationcausesthesupplyofbondsto________andthesupplycurvetoshifttothe________.A)increase,leftB)increase,rightC)decrease,leftD)decrease,rightAnswer:BWhenthefederalgovernment'sbudgetdeficitincreases,the________curveforbondsshiftstothe________.demand;rightdemand;leftsupply;leftsupply;rightAnswer:DWhenthefederalgovernment'sbudgetdeficitdecreases,the________curveforbondsshiftstothe________.demand;rightdemand;leftsupply;leftsupply;rightAnswer:C优秀文档合用标准文案42)Whentheinflationrateisexpectedtoincrease,theexpectedreturnonbondsrelativetorealassetsfallsforanygiveninterestrate;asaresult,the________bondsfallsandthe________curveshiftstotheleft.demandfor;demanddemandfor;supplysupplyof;demandsupplyof;supplyAnswer:AWhentheinflationrateisexpectedtoincrease,therealcostofborrowingdeclinesatanygiveninterestrate;asaresult,the________bondsincreasesandthe________curveshiftstotheright.A)demandfor;demandB)demandfor;supplyC)supplyof;demandD)supplyof;supplyAnswer:DFigure4.144)InFigure4.1,themostlikelycauseoftheincreaseintheequilibriuminterestratefrom1itoi2isanincreaseinthepriceofbonds.abusinesscycleboom.anincreaseintheexpectedinflationrate.adecreaseintheexpectedinflationrate.Answer:C45)InFigure4.1,themostlikelycauseoftheincreaseintheequilibriuminterestratefrom1itoi2isa(n)________inthe________.increase;expectedinflationratedecrease;expectedinflationrateincrease;governmentbudgetdeficit优秀文档合用标准文案decrease;governmentbudgetdeficitAnswer:A46)InFigure4.1,themostlikelycauseofadecreaseintheequilibriuminterestratefromitoi1is2A)anincreaseintheexpectedinflationrate.B)adecreaseintheexpectedinflationrate.C)abusinesscycleexpansion.D)acombinationofbothAandCoftheabove.Answer:BFactorsthatcancausethesupplycurveforbondstoshifttotherightincludeA)anexpansioninoveralleconomicactivity.B)adecreaseinexpectedinflation.C)adecreaseingovernmentdeficits.alloftheabove.onlyAandBoftheabove.Answer:A48)Factorsthatcancausethesupplycurveforbondstoshifttotheleftincludeanexpansioninoveralleconomicactivity.adecreaseinexpectedinflation.anincreaseingovernmentdeficits.onlyAandCoftheabove.Answer:BTheeconomistIrvingFisher,afterwhomtheFishereffectisnamed,explainedwhyinterestrates________astheexpectedrateofinflation________.A)rise;increasesrise;stabilizesrise;decreasesfall;increasesfall;stabilizesAnswer:AAnincreaseintheexpectedrateofinflationcausesthedemandforbondsto________andthesupplyforbondsto________.A)fall;fallB)fall;riseC)rise;fallD)rise;riseAnswer:B优秀文档合用标准文案51)Adecreaseintheexpectedrateofinflationcausesthedemandforbondsto________andthesupplyofbondsto________.fall;fallfall;riserise;fallrise;riseAnswer:CWhentheeconomyslipsintoarecession,normallythedemandforbonds________,thesupplyofbonds________,andtheinterestrate________.increases;increases;risesdecreases;decreases;fallsincreases;decreases;fallsdecreases;increases;risesAnswer:BWhentheeconomyentersintoaboom,normallythedemandforbonds________,thesupplyofbonds________,andtheinterestrate________.A)increases;increases;risesdecreases;decreases;fallsincreases;decreases;risesdecreases;increases;risesAnswer:A优秀文档合用标准文案Figure4.254)InFigure4.2,onepossibleexplanationfortheincreaseintheinterestratefromitoi2isa(n)1________in________.A)increase;theexpectedinflationrateB)decrease;theexpectedinflationrateC)increase;economicgrowthD)decrease;economicgrowthAnswer:C55)InFigure4.2,onepossibleexplanationfortheincreaseintheinterestratefromitoi2is1A)anincreaseineconomicgrowth.B)anincreaseingovernmentbudgetdeficits.C)adecreaseingovernmentbudgetdeficits.D)adecreaseineconomicgrowth.E)adecreaseintheriskinessofbondsrelativetootherinvestments.Answer:A56)InFigure4.2,onepossibleexplanationforadecreaseintheinterestratefromtoii1is2A)anincreaseingovernmentbudgetdeficits.B)anincreaseinexpectedinflation.C)adecreaseineconomicgrowth.D)adecreaseintheriskinessofbondsrelativetootherinvestments.Answer:CInKeynes'sliquiditypreferenceframework,individualsareassumedtoholdtheirwealthintwoforms:A)realassetsandfinancialassets.B)stocksandbonds.C)moneyandbonds.moneyandgold.Answer:C优秀文档合用标准文案Inhisliquiditypreferenceframework,Keynesassumedthatmoneyhasazerorateofreturn;thus,wheninterestrates________theexpectedreturnonmoneyfallsrelativetotheexpectedreturnonbonds,causingthedemandformoneyto________.A)rise;fallB)rise;risefall;fallfall;riseAnswer:ATheloanablefundsframeworkiseasiertousewhenanalyzingtheeffectsofchangesin________,whiletheliquiditypreferenceframeworkprovidesasimpleranalysisoftheeffectsfromchangesinincome,thepricelevel,andthesupplyof________A)expectedinflation;bonds.B)expectedinflation;ernmentbudgetdeficits;bonds.thesupplyofmoney;bonds.Answer:BWhencomparingtheloanablefundsandliquiditypreferenceframeworksofinterestratedetermination,whichofthefollowingistrue?A)Theliquiditypreferenceframeworkiseasiertousewhenanalyzingtheeffectsofchangesinexpectedinflation.B)Theloanablefundsframeworkprovidesasimpleranalysisoftheeffectsofchangesinincome,thepricelevel,andthesupplyofmoney.Inmostinstances,thetwoapproachestointerestratedeterminationyieldthesamepredictions.Alloftheabovearetrue.OnlyAandBoftheabovearetrue.Answer:CAhigherlevelofincomecausesthedemandformoneyto________andtheinterestrateto________A)decrease;decrease.decrease;increase.increase;decrease.increase;increase.Answer:DAlowerlevelofincomecausesthedemandformoneyto________andtheinterestrateto________A)decrease;decrease.B)decrease;increase.C)increase;decrease.优秀文档合用标准文案increase;increase.Answer:AAriseinthepricelevelcausesthedemandformoneyto________andthedemandcurvetoshifttothe________A)decrease;right.decrease;left.increase;right.increase;left.Answer:CAdeclineinthepricelevelcausesthedemandformoneyto________andthedemandcurvetoshifttothe________decrease;right.decrease;left.increase;right.increase;left.Answer:BAdeclineintheexpectedinflationratecausesthedemandformoneyto________andthedemandcurvetoshifttothe________A)decrease;right.B)decrease;left.C)increase;right.increase;left.Answer:BHoldingeverythingelseconstant,anincreaseinthemoneysupplycausesA)interestratestodeclineinitially.B)interestratestoincreaseinitially.C)bondpricestodeclineinitially.D)bothAandCoftheabove.E)bothBandCoftheabove.Answer:AHoldingeverythingelseconstant,adecreaseinthemoneysupplycausesA)interestratestodeclineinitially.B)interestratestoincreaseinitially.bondpricestoincreaseinitially.bothAandCoftheabove.bothBandCoftheabove.Answer:B优秀文档合用标准文案Figure4.3InFigure4.3,thefactorresponsibleforthedeclineintheinterestrateisA)adeclineinthepricelevel.adeclineinincome.anincreaseinthemoneysupply.adeclineintheexpectedinflationrate.Answer:C69)InFigure4.3,thedecreaseintheinterestratefrom1itoi2canbeexplainedbyadecreaseinmoneygrowth.anincreaseinmoneygrowth.adeclineintheexpectedpricelevel.onlyAandBoftheabove.Answer:B70)InFigure4.3,anincreaseintheinterestratefrom2itoi1canbeexplainedbyadecreaseinmoneygrowth.anincreaseinmoneygrowth.adeclineinthepricelevel.anincreaseintheexpectedpricelevel.Answer:A优秀文档合用标准文案71)Iftheliquidityeffectissmallerthantheothereffects,andtheadjustmentofexpectedinflationisslow,erestratewillinitiallyrisebuteventuallyfallbelowtheinitiallevelinresponsetoanincreaseinmoneygrowth.Answer:CWhenthegrowthrateofthemoneysupplyincreases,interestratesendupbeingpermanentlylowerifA)theliquidityeffectislargerthantheothereffects.B)thereisfastadjustmentofexpectedinflation.C)thereisslowadjustmentofexpectedinflation.D)theexpectedinflationeffectislargerthantheliquidityeffect.Answer:AWhenthegrowthrateofthemoneysupplydecreases,interestratesendupbeingpermanentlylowerifA)theliquidityeffectislargerthantheothereffects.thereisfastadjustmentofexpectedinflation.thereisslowadjustmentofexpectedinflation.theexpectedinflationeffectislargerthantheliquidityeffect.Answer:DWhenthegrowthrateofthemoneysupplyisdecreased,interestrateswillriseimmediatelyiftheliquidityeffectis________thantheothereffectsandifthereis________adjustmentofexpectedinflation.A)larger;rapidB)larger;slowC)smaller;slowD)smaller;rapidAnswer:BWhenthegrowthrateofthemoneysupplyisincreased,interestrateswillriseimmediatelyiftheliquidityeffectis________thantheothereffectsandifthereis________adjustmentofexpectedinflation.A)larger;rapidlarger;slowsmaller;slowsmaller;rapidAnswer:D优秀文档合用标准文案优秀文档合用标准文案76)IftheFedwantstopermanentlylowerinterestrates,thenitshouldlowertherateofmoneygrowthifthereisfastadjustmentofexpectedinflation.thereisslowadjustmentofexpectedinflation.theliquidityeffectissmallerthantheexpectedinflationeffect.theliquidityeffectislargerthantheothereffects.Answer:CIftheFedwantstopermanentlylowerinterestrates,thenitshouldraisetherateofmoneygrowthifA)thereisfastadjustmentofexpectedinflation.B)thereisslowadjustmentofexpectedinflation.C)theliquidityeffectissmallerthantheexpectedinflationeffect.D)theliquidityeffectislargerthantheothereffects.Answer:DMiltonFriedmancontendsthatitisentirelypossibl