金融市场学习题

《金融市场学》复习题

1.Commonstockisanexampleofa(n).

A)deb.securimone.marke.security..C)

equit.security..D..an.b

2.Therequiredreturntoimplementagivenbusinessprojectwillbe

ifinterestratesarelower.Thisimpliesthatbusinesseswill

demandaquantityofloanablefundswheninterestratesare

lower.

A)greater;lowerB)lower;greaterC)lower;lowerD)

greater;greater

3.Thefederalgovernmentdemandforloanablefundsis.If

thebudgetdeficitwasexpectedtoincrease,thefederalgovernment

demandforloanablefundswould.

A)interestelastic;decreaseB)interestelastic;increase

C)interestinelastic;increaseD)interestinelastic;decrease

4.Iftherealinterestratewasnegativeforaperiodoftime,then

A)inflationisexpectedtoexceedthenominalinterestrateinthe

future.

B)inflationisexpectedtobelessthanthenominalinterestratein

thefuture.

C)actualinflationwaslessthanthenominalinterestrate.

D)actualinflationwasgreaterthanthenominalinterestrate.

5.Ifinflationturnsouttobelowerthanexpected

A)saversbenefit.

B)borrowersbenefitwhilesaversarenotaffected.

C)saversandborrowersareequallyaffected.

D)saversareadverselyaffectedbutborrowersbenefit.

6.

Assum.tha.foreig.investor.wh.hav.investe.i.U.S.securitie.decid.t.incr

eas.thei.holding.o.U.S.secur­

ities..Thi.shoul.cans.th.suppl.o.loanabl.fund.i.th.Unite.State.t..an.

shoul.plac..pressur.o.U.S.interes.rates.

A)decrease;upwardB)decrease;downwardC)increase;

downwardD)increase;upward

7.Ifeconomicexpansionisexpectedtodecrease,thedemandfor

loanablefundsshouldandinterestratesshould.

A)increase;increaseB)increase;decreaseC)

decrease;decreaseD)decrease;increase

8.

Whe.Jeres.rate.rise.an.i.exchang.rat.expectation.remai.u

nchanged.th.mvide.b.Jap

anes.investor.1.th.Unite.State,wil..an.th.U.S.interes.rate.wil.

A)increase;increaseB)increase;decreaseC)

decrease;decreaseD)decrease;increase

9.Assumethatannualizedyieldsofshort-termandlong-term

securitiesareequal.Ifinvestorssuddenlybelieveinterestrateswill

increase,theiractionsmaycausetheyieldcurveto

A)becom.inverted..B)

becom.flat..C.becom.upwar.sloping..D.b.unaffected.

10.Iftheliquiditypremiumexists,aflatyieldcurvewouldbe

interpretedasthemarketexpecting___ininterestrates.

A)nochangesB)aslightdecreaseC)aslightincreaseD)a

largeincrease

11.Accordingtothesegmentedmarketstheory,ifmostinvestors

suddenlypreferredtoinvestinshort-termsecuritiesandmost

borrowerssuddenlypreferredtoissuelong-termsecuritiesthere

wouldbe

A)upwardpressureonthepriceoflong-termsecurities.

B)upwardpressureonthepriceofshort-termsecurities.

C)downwardpressureontheyieldoflong-termsecurities.

D)aandc

12.Otherthingsequal,theyieldrequiredonnon-callablebonds

shouldbetheyieldrequiredoncallablebondswhoseother

characteristicsareexactlythesame.

A)greaterthanB)equaltoC)lessthan

D)Alloftheabovearepossible,dependingonthesizeofthecall

premium.

13.Accordingtoexpectationstheory,thesuddenexpectationoflower

interestratesinthefuturewillcauseasupplyofshort-term

fundsprovidedbyinvestors,andasupplyoflong-termfunds.

A)large;largeB)large;smallC)small;smallD)

small;large

14.Assum.tha.th.Treasur.experience..larg.decreas.i.th.budge.defici.

an.purchase..larg.numbe.o.T-bills.Thi.actio.wil..th.

suppl.o.T-bill.i.th.marke.an.place..pressur.o.th.yie

l.o.T-bills.

A)decrease;downwardB)decrease;upwardC)increase;upward

D)increase;downward

15.Afirmplanstoissue30-daycommercialpaperfor

$9,900,000.Parvalueis$10,000,000.Whatisthefirmfscostof

borrowing?

A)12.12%B)11.11%C)13.00%D)14.08%E)

15.25%

16.Arepurchaseagreementcallsforaninvestortobuysecuritiesfor

$4,925,000andsellthembackin60daysfor$5,000,000.Whatis

theyield?

A)9.43%B)9.28%C)9.14%D)9.00%

17.Robbin.Corp.frequentl.invest,exces.fund.i.th.Mexica.mone.mark

et.On.yea.ago.Robbin.investe.i..one-yea.Mexica.mone.marke.securit

.vide..yiel.0.25%.A.th.en.o.th.year.whe.Robbin.converte.th.M

exica.peso.t.dollars.th.pes.ha.depreciate,fro.$.1,t.$.11.Wha.i.th.effe

ctiv.yiel.earne.b.Robbins?

A)25.00%B)35.41%C)14.59%D)noneofthe

above

18.Bulloc.Corp.purchase.certai.securitie.fo.$4,92l,349.wit.a.agree

men.t.sel.the.bac.a..pric.o.$4,950,00.a.th.en.o..30-da.period.Th.rep

.rat.i..%.

A)7.08B)6.95C)6.99D)7.04E)noneoftheabove

19.

Assum.U.S.interes.rate.ar.significant!.highe.tha.Germa.rates.

.U.S.fir.wantin.t.issu.bond.coul.achiev..lowe.financin.rate.withou

.exchang.rat.ris.b.denominatin.th.bond.in

A)dollars.

B)marks(德国马克)an.makin.payment.fro.U.S.headquarters.

C)marksandmakingpaymentsfromaGermansubsidiary.

D)dollarsandmakingpaymentsfromaGermansubsidiary.

20.Ifinterestratessuddenly,thoseexistingbondsthat

haveacallfeaturearelikelytobecalled.

A)decline;moreB)decline;lessC)increase;moreD)noneof

theabove

21.Whenfinancialinstitutionsexpectinterestratesto,they

may.

A)increase;sellbondsandbuyshorttermsecurities

B)increase;sellshorttermsecuritiesandbuybonds

C)decrease;sellbondsandbuyshorttermsecurities

D)BandC

22.Ifthecouponratetherequiredrateofreturn,thepriceofa

bondparvalue.

A)equals;equalsB)exceeds;islessthan

C)islessthan;isgreaterthanD)BandC

E)noneoftheabove

23.

A.interes.rate.consistentl.ris.ove..specifi.period.th.marke.pric.

o..bon.yo.ow.woul.likel..ove.thi.period.

(Assum.n.majo.chang.i.th.bondJ.defaul.risk.)

A)consistentlyincreaseB)consistentlydecreaseC)remain

unchanged

D)changeinadirectionthatcannotbedeterminedwiththeabove

information

24.Ifanalystsexpectthatthedemandforloanablefundswillincrease,

andthesupplyofloanablefundswilldecrease,theywouldmost

likelyexpectinterestratestoandpricesofexistingbondsto

*

A)increase;increaseB)increase;decreaseC)decrease;decrease

D)decrease;increase

25.Ifbondportfoliomanagersexpectinterestratestoincreaseinthe

future,theywouldlikelytheirholdingsofbondsnow,which

couldcausethepricesofbondstoasaresultoftheiractions.

A)increase;increaseB)increase;decreaseC)decrease;

decreaseD)decrease;increase

26.IftheUnitedStatesannouncesthatitwillborrowanadditional

$10billion,thisannouncementwillnormallycausethebondtraders

toexpect

A)higherinterestratesinthefuture,andwillbuybondsnow.

B)higherinterestratesinthefuture,andwillsellbondsnow.

C)stableinterestratesinthefuture,andwillbuybondsnow.

D)lowerinterestratesinthefuture,andwillbuybondsnow.

E)lowerinterestratesinthefuture,andwillsellbondsnow.

27.Ifthelevelofinflationisexpectedto,therewillbe

pressureoninterestratesandpressure

ontherequiredrateofreturnonbonds.

A)increase;upward;downwardB)decrease;upward;

downward

C)decrease;upward;upwardD)increase;downward;

upward

E)increase;upward;upward

28.Usinga(n)strategy,investorsallocatefundsevenly

tobondsineachofseveraldifferentmaturityclasses.

A)matchingB)ladderedC)barbellD)interest

rateE)noneoftheabove

29.Managersoffirmsmayconsiderastockrepurchaseorevena

leveragedbuyoutwhentheybelievetheirstockisbythe

market,orasecondarystockofferingwhentheybelievetheirstockis

bythemarket.

A)undervalued;undervaluedB)overvalued;overvalued

C)undervalued;overvaluedD)overvalued;undervaluedE)

noneoftheabove

30.

.stock'.averag.retur.i.10%.Th.averag.risk-fre.rat.i.7%.Th.stan

dar.deviatio.o.th.stock'.retur.i.4%,an.th.stock'.bet.i.1.5.Wha.i.

th.Treyno.Inde.fo.th.stock?

A).03B).75C)1.33D).02E)50

31.Ahigherbetaofanassetreflects

A)lowerrisk.

B)lowercovariancebetweentheassetJsreturnsandmarket

returns.

C)highercovariancebetweentheasset'sreturnsandthemarket

returns.

D)noneoftheabove.

32.Thearbitragepricingtheory(APT)differsfromthecapitalasset

pricingmodel(CAPM)inthatitsuggeststhatstockprices

A)arcinfluencedonlybythemarketitself.

B)canbeinfluencedbyasetoffactorsinadditiontothemarket.

C)arenotinfluencedatallbythemarket.

D)cannotbeinfluencedatallbytheindustryfactors.

33.Lth.return.o.tw.stock.ar.perfectl.correlated.then

A.thei.beta.shoul.eac.equa.1.0..

B)thesumoftheirbetasshouldequal1.0.

C)theircorrelationcoefficientshouldequal1.0.

D)theirportfoliostandarddeviationshouldequal1.0.

34.Theriskofash