Câu hỏi Tiền tệ ( Cô cho )

Everything else held constant, Americans who love French wine benefit most from
Select one:
a. a constant dollar price for euros.
b. an increase in the dollar price of euros.
c. a decrease in the dollar price of euros.
d. a ban on imports from Europe.
A financial crisis is
Select one:
a. typically followed by an economic boom.
b. not possible in the modern financial environment.
c. a major disruption in the financial markets.
d. a feature of developing economies only.
Financial intermediaries
Select one:
a. can hurt the performance of the economy.
b. provide a channel for linking those who want to save with those who want to invest.
c. hold very little of the average Americanʹs wealth.
d. produce nothing of value and are therefore a drain on society's resources.
Financial markets promote greater economic efficiency by channeling funds from ________
to________.
Select one:
a. borrowers; savers
b. investors; savers
c. savers; lenders
d. savers; borrowers
Of the following assets, the least liquid is
Select one:
a. stocks.
b. travelerʹs checks.
c. a house.
d. checking deposits.
Poorly performing financial markets can be the cause of
Select one:
a. poverty.
b. financial expansion.
c. financial stability.
d. wealth.
High interest rates might ________ purchasing a house or car but at the same time high
interest rates might ________ saving.
Select one:
a. discourage; discourage
b. encourage; discourage
c. encourage; encourage
d. discourage; encourage
Well-functioning financial markets
Select one:
a. eliminate the need for indirect finance.
b. produce an efficient allocation of capital.
c. cause inflation.
d. cause financial crises.
Financial institutions search for ________ has resulted in many financial innovations
Select one:
a. all of the above
b. higher profits
c. respect
d. regulations
Channeling funds from individuals with surplus funds to those desiring funds when the saver
does not purchase the borrowerʹs security is known as
Select one:
a. redistribution.
b. financial intermediation.
c. barter.
d. taxation.
Which of the following are true of fixed payment loans?
Select one:
a. Commercial loans to businesses are often of this type
b. The borrower repays both the principal and interest at the maturity date.
c. The borrower pays interest periodically and the principal at the maturity date
d. Installment loans and mortgages are frequently of the fixed payment type.
The payments system is
Select one:
a. the method of conducting transactions in the economy
b. used by union officials to set salary caps.
c. an illegal method of rewarding contracts.
d. used by your employer to determine salary increases.
What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for
$1,200 next year?
Select one:
a. 25 percent
b. 10 percent
c. 5 percent
d. 5 percent
A................pays the owner a fixed coupon payment every year until the maturity date, when
the..............value is repaid.
Select one:
a. coupon bond; discount
b. coupon bond; face
c. discount bond; discount
d. discount bond; face
When compared to exchange systems that rely on money, disadvantages of the barter system
include:
Select one:
a. the requirement of a double coincidence of wants.
b. encouraging specialization and the division of labor.
c. lowering the cost of exchanging goods over time.
d. lowering the cost of exchange to those who would specialize.
Which of the following can be described as involving direct finance?
Select one:
a. People buy shares of common stock in the primary markets.
b. A corporation buys a short -term corporate security in a secondary market.
c. A corporation takes out loans from a bank.
d. People buy shares in a mutual fund.
The price of a coupon bond and the yield to maturity are........related; that is, as the yield to
maturity........., the price of the bond.......
Select one:
a. positively; rises; falls
b. negatively; falls; falls
c. negatively; rises; falls
d. positively; rises; rises
The evolution of the payments system from barter to precious metals, then to fiat money, then
to checks can best be understood as a consequence of
Select one:
a. competition among firms to make it easier for customers to purchase their products
b. government regulations designed to promote the safety of the payments system.
c. government regulations designed to improve the efficiency of the payments system
d. innovations that reduced the costs of exchanging goods and services
Which of the following is included in M2 but not in M1?
Select one:
a. Demand deposits
b. Currency
c. Money market mutual fund shares (retail)
d. NOW account (Negotiable Order of Withdrawal)
Of moneyʹs three functions, the one that distinguishes money from other assets is its function
as a
Select one:
a. store of value.
b. standard of deferred payment.
c. medium of exchange.
d. unit of account.
Which policy involves decisions about government spending and taxation?
Select one:
a. none of the others
b. Financial policy
c. Monetary policy
d. Fiscal policy
During hyperinflations
Select one:
a. money no longer functions as a good store of value and people may resort to barter
transactions on a much larger scale
b. middle-class savers benefit as prices rise.
c. money's value remains fixed to the price level; that is, if prices double so does the value of
money.
d. the value of money rises rapidly.
If company A (headquarters in Japan) sells a $1,000 bond in the UK, the bond is a
Select one:
a. foreign bond
b. Tokyo bond.
c. Eurobond.
d. currency bond.
The management of money and interest rates is called ________ policy and is conducted by a
nation's ________ bank
Select one:
a. fiscal; central
b. fiscal; superior
c. monetary; central
d. monetary; superior
Which one that the nominal interest rate equals the real interest rate plus the expected rate of
inflation?
Select one:
a. Keynesian equation
b. Monetarist equation
c. Fisher equation
d. Marshall equation
A bond with face value is $10,000 and 8 percent coupon bond that sells for $10,000 has a
yield to maturity of
Select one:
a. 10 percent.
b. 8 percent.
c. none of the others
d. 12 percent.
Which of the following is NOT a financial institution?
Select one:
a. a credit union
b. a pension fund
c. a business college
d. a life insurance company
Loans from ________ are far ________ important for corporate finance than are securities
markets.
Select one:
a. financial intermediaries; less
b. financial intermediaries; more
c. government agencies; more
d. government agencies; less
Which bonds allow the holder to change them into a specific number of shares of stock?
Select one:
a. Convertible bond
b. Treasury bond
c. none of the others
d. Municipal bond
M2 contains everything that is in M1 plus other assets that are highly ________
Select one:
a. efficient
b. liquid
c. none of others
d. stable
Changes in stock prices
Select one:
a. are unimportant to decision makers.
b. affect firms' decisions to sell stock to finance investment spending.
c. occur in regular patterns.
d. do not affect people's wealth and their willingness to spend.
When money is stronger mean.....................
Select one:
a. vacationing in foreign country becomes less expensive.
b. foreign cars become more expensive.
c. foreign cheese becomes more expensive.
d. vacationing in foreign country becomes more expensive.
The interest rates on long-term government bonds, interest rates on three-month Treasury
bills fluctuate ________ and are ________ on average.
Select one:
a. less; higher
b. more; higher
c. less; lower
d. more; lower
Listing sequences accurately describes the evolution of the payments system?
Select one:
a. barter, checks, paper currency, electronic funds transfers
b. barter, coins made of precious metals, paper currency, checks, electronic funds transfers
c. barter, checks, paper currency, coins made of precious metals, electronic funds transfers
d. barter, coins made of precious metals, checks, paper currency, electronic funds transfers
All bonds that will not be held to maturity have interest rate risk which occurs because of the
change in the price of the bond as a result of
Select one:
a. changes in the asset's maturity date.
b. changes in the coupon rate.
c. default of the borrower.
d. interest-rate changes.
Financial markets promote economic efficiency by
 A. Creating inflation.
B. Reducing investment.
C. Channeling funds from savers to borrowers.
D. Channeling funds from borrowers to savers.
A primary market is one in which
A. Newly printed money is transferred to the banks.
B. Money market dealers make their most important trades.
C. The central bank conducts its monetary policy.
D. Financial assets are traded for the first time
A corporation acquires new funds only when its securities are sold in the
A. Primary market by an investment bank.
B. Secondary market by a stock exchange broker.
C. Secondary market by a commercial bank.
D. Secondary market by an investment bank.
When an investment bank ________ securities, it guarantees a price for a corporation's
securities and then sells them to the public
A. Underwrites.
B. Overwrites.
C. Overtakes.
D. Undertakes
These are agents of investors who match buyers with sellers of securities.
A. Borrowers.
B. Brokers.
C. Investors.
D. Dealers
Financial instruments with maturities of less than one year are traded in the
A. Equity market
B. Capital market.
C. Money market.
D. Fixed-income market.
Markets for newly issued financial instruments with maturities shorter than one year are
I. money markets
 II. capital markets
III. primary markets
IV. secondary markets
A. Both I and III. C. Both II and III.
B. Both I and IV. D. Both II and IV.
Which of the following is a money market instrument?
A. A treasury bill.
B. A treasury bond.
C. A corporate bond.
D. A mortgage loan.
Which of the following is a capital market instrument?
A. A certificate of deposit.
B. A bank loan.
C. A commercial paper.
D. A treasury bill.
A debt instrument sold by a bank to its depositors that pays annual interest of a given amount
and at maturity pays back the original purchase price is called
A. A certificate of deposit.
B. A bank loan.
C. A mortgage.
D. A treasury bond.
Bonds that are sold in a foreign country and are denominated in a currency other than that of
the country in which it is sold are known as
A. Foreign bonds.
B. Treasury bonds.
C. Eurobonds.
D. Corporate bonds.
Bonds that are sold in a foreign country and are denominated in the country's currency in
which they are sold are known as
A. Foreign bonds.
B. Treasury bonds.
C. Eurobonds.
D. Corporate bonds.
US dollar deposits in foreign banks outside the US or in foreign branches of U.S. banks
are called
A. Atlantic dollars.
B. Foreign dollars.
C. Eurodollars.
D. Outside dollars
The process of indirect finance using financial intermediaries is called
A. Direct lending.
B. Resource allocation.
C. Financial liquidation.
D. Financial intermediation.
Which one is not a function of financial intermediation?
A. It deal with asymmetric information problems.
B. It provides a safekeeping service for those with excess funds.
C. It lower transaction costs.
D. It reduce the exposure of investors to risk.
Financial intermediaries lower costs by spreading them over a large number of customers,
thereby taking advantage of
A. Moral hazard.
B. Diversification.
C. Asymmetric information.
D. Economies of scale.
Reducing risk through the purchase of assets whose returns do not always move together
is
A. Diversification.
B. Disintermediation.
C. Intervention.
D. Intermediation.
The process where financial intermediaries create and sell low-risk assets and use the
proceeds to purchase riskier assets is known as
A. Risk selling.
B. Risk sharing.
C. Risk aversion.
D. Risk neutrality.
Asymmetric information means that
A. All parties to a transaction have the same amount of information on the other party.
B. Information is expensive to obtain.
C. One party to a transaction has relatively more information than another party.
D. Information is readily available for most parties concerned in a transaction.
Which of the following is a problem of adverse selection?
A. Individuals use more medical services as a result of their purchase of a health
insurance plan.
B. A person takes up the hobby of bungee jumping after purchasing health insurance.
C. The lender has a problem of distinguishing good-risk borrowers from bad-risk
borrowers.
D. The lender has a problem determining that the proceeds from a loan are being used as
the borrower stated.
If bad credit risks are the ones who most actively seek loans and, therefore, receive them
from financial intermediaries, then financial intermediaries face the problem
A. Moral hazard.
B. Adverse selection.
C. Free-riding.
D. Costly state verification.
If borrowers take on big risks after obtaining a loan, then lenders face the problem of
A. Moral hazard.
B. Free-riding.
C. Adverse selection.
D. Costly state verification.
Problems of ________ arise before a loan is made; problems of _________ arise after a
loan is made
A. Adverse selection; moral hazard.
B. Moral hazard; adverse selection.
C. Transactions costs, adverse selection.
D. Moral hazard; transactions costs.
Asymmetric information poses two important obstacles to the smooth flow of funds from
savers to investors. They are
A. Adverse selection, which arises before the transaction occurs, and moral hazard,
which occurs after the transaction.
B. Adverse selection and moral hazard, both of which occur before the transaction.
C. Adverse selection and moral hazard, both of which occur after the transaction.
D. Moral hazard, which arises before the transaction occurs, and adverse selection, which
occurs after the transaction
Which of the following is a depository financial institution?
A. A savings bank.
B. An insurance company.
C. A finance company.
D. A pension fund.
Which of the following is not a investment intermediary?
A. Money market mutual fund.
B. Pension fund.
C. Finance company.
D. Mutual fund
Which of the following is not a contractual intermediary?
A. Government pension fund.
B. Life insurance company.
C. Money market mutual fund.
D. Private pension fund
Which of the following financial intermediaries specialize in making mortgage loans?
A. Pension funds.
B. Savings and loan associations.
C. Finance companies.
D. Insurance companies.
Government regulation of financial intermediaries is generally aimed at
A. Increasing the flow of information to investors.
B. Improving the central bank’s ability to control the money supply.
C. Making intermediaries more stable and less likely to fail.
D. All of the above