【良心出品】第四章-利率为何会变动(英文习题及答案)

Chapter4WhyDoInterestRatesChange?

4.1SingleChoice

1)Asthepriceofabond_________andtheexpectedreturn_________,bondsbecomemoreattractivetoinvestorsandthequantitydemandedrises.

A)falls;rises

B)falls;falls

C)rises;rises

D)rises;falls

2)Thesupplycurveforbondshastheusualupwardslope,indicatingthatastheprice_________,ceterisparibus,the_________increases.

A)falls;supply

B)falls;quantitysupplied

C)rises;supply

D)rises;quantitysupplied

3)Whenthepriceofabondisabovetheequilibriumprice,thereisexcess_________inthebondmarketandthepricewill_________.

A)demand;rise

B)demand;fall

C)supply;fall

D)supply;rise

4)Whenthepriceofabondisbelowtheequilibriumprice,thereisexcess_________inthebondmarketandthepricewill_________.

A)demand;rise

B)demand;fall

C)supply;fall

D)supply;rise

5)Whenthepriceofabondis_________theequilibriumprice,thereisanexcesssupplyofbondsandthepricewill_________.

A)above;rise

B)above;fall

C)below;fall

D)below;rise

6)Whenthepriceofabondis_________theequilibriumprice,thereisanexcessdemandforbondsandthepricewill_________.

A)above;rise

B)above;fall

C)below;fall

D)below;rise

7)Whentheinterestrateonabondisabovetheequilibriuminterestrate,thereisexcess_________inthebondmarketandtheinterestratewill_________.

A)demand;rise

B)demand;fall

C)supply;fall

D)supply;rise

8)Whentheinterestrateonabondisbelowtheequilibriuminterestrate,thereisexcess_________inthebondmarketandtheinterestratewill_________.

A)demand;rise

B)demand;fall

C)supply;fall

D)supply;rise

9)Whentheinterestrateonabondis_________theequilibriuminterestrate,thereisexcess_________inthebondmarketandtheinterestratewill_________.

A)above;demand;fall

B)above;demand;rise

C)below;supply;fall

D)above;supply;rise

10)Whentheinterestrateonabondis_________theequilibriuminterestrate,thereisexcess_________inthebondmarketandtheinterestratewill_________.

A)below;demand;rise

B)below;demand;fall

C)below;supply;rise

D)above;supply;fall

11)Whenthedemandforbonds_________orthesupplyofbonds_________,interestraterise.

A)increases;increases

B)increases;decreases

C)decreases;decreases

D)decreases;increases

12)Whenthedemandforbonds_________orthesupplyofbonds_________,interestratesfall.

A)increases;increases

B)increases;decreases

C)decreases;decreases

D)decreases;increases

13)Whenthedemandforbonds_________orthesupplyofbonds_________,bondpricesrise.

A)increases;decreases

B)decreases;increases

C)decreases;decreases

D)increases;increases

14)Whenthedemandforbonds_________orthesupplyofbonds_________,bondpricesfall.

A)increases;increases

B)increases;decreases

C)decreases;decreases

D)decreases;increases

15)Factorsthatdeterminethedemandforanassetincludechangesinthe

A)wealthofinvestors.

B)liquidityofbondsrelativetoalternativeassets.

C)expectedreturnsonbondsrelativetoalternativeassets.

D)riskofbondsrelativetoalternativeassets.

E)alloftheabove.

16)Thedemandforanassetrisesif_________falls.

A)riskrelativetootherassets

B)expectedreturnrelativetootherassets

C)liquidityrelativetootherassets

D)wealth

17)Thehigherthestandarddeviationofreturnsonanasset,the_________istheasset's_________.

A)greater;risk

B)smaller;risk

C)greater;expectedreturn

D)smaller;expectedreturn

18)Diversificationbenefitsaninvestorby

A)increasingwealth.

B)increasingexpectedreturn.

C)reducingrisk.

D)increasingliquidity.

19)Inarecessionwhenincomeandwealtharefalling,thedemandforbonds_________andthedemandcurveshiftstothe_________.

A)falls;right

B)falls;left

C)rises;right

D)rises;left

20)Duringbusinesscycleexpansionswhenincomeand