第二章--金融体系预览(英文习题及答案)

Chapter2OverviewoftheFinancialSystem2.1SingleChoice1)Everyfinancialmarketperformsthefollowingfunction:A)Itdeterminesthelevelofinterestrates.B)Itallowscommonstocktobetraded.C)Itallowsloanstobemade.D)Itchannelsfundsfromlenders-saverstoborrowers-spenders.2)FinancialmarketshavethebasicfunctionofA)bringingtogetherpeoplewithfundstolendandpeoplewhowanttoborrowfunds.B)assuringthattheswingsinthebusinesscyclearelesspronounced.C)assuringthatgovernmentsneedneverresorttoprintingmoney.D)bothAandBoftheabove.E)bothBandCoftheabove.3)Whichofthefollowingcanbedescribedasinvolvingdirectfinance?A)Acorporation'sstockistradedinanover-the-countermarket.B)Peoplebuysharesinamutualfund.C)Apensionfundmanagerbuyscommercialpaperinthesecondarymarket.D)Aninsurancecompanybuyssharesofcommonstockintheover-the-countermarkets.E)Noneoftheabove.4)Whichofthefollowingcanbedescribedasinvolvingdirectfinance?A)Acorporation'sstockistradedinanover-the-countermarket.B)Acorporationbuyscommercialpaperissuedbyanothercorporation.C)Apensionfundmanagerbuyscommercialpaperfromtheissuingcorporation.D)BothAandBoftheabove.E)BothBandCoftheabove.5)Whichofthefollowingcanbedescribedasinvolvingindirectfinance?A)Acorporationtakesoutloansfromabank.B)Peoplebuysharesinamutualfund.C)Acorporationbuyscommercialpaperinasecondarymarket.D)Alloftheabove.E)OnlyAandBoftheabove.6)Whichofthefollowingcanbedescribedasinvolvingindirectfinance?A)AbankbuysaU.S.Treasurybillfromoneofitsdepositors.B)Acorporationbuyscommercialpaperissuedbyanothercorporation.C)Apensionfundmanagerbuyscommercialpaperintheprimarymarket.D)BothAandCoftheabove.7)FinancialmarketsimproveeconomicwelfarebecauseA)theyallowfundstomovefromthosewithoutproductiveinvestmentopportunitiestothosewhohavesuchopportunities.B)theyallowconsumerstotimetheirpurchasesbetter.C)theyweedoutinefficientfirms.D)theydoalloftheabove.E)theydoAandBoftheabove.8)AcountrywhosefinancialmarketsfunctionpoorlyislikelytoA)efficientlyallocateitscapitalresources.B)enjoyhighproductivity.C)experienceeconomichardshipandfinancialcrises.D)increaseitsstandardofliving.9)Whichofthefollowingaresecurities?A)AcertificateofdepositB)AshareofTexacocommonstockC)ATreasurybillD)AlloftheaboveE)OnlyAandBoftheabove10)Whichofthefollowingstatementsaboutthecharacteristicsofdebtandequityaretrue?A)Theybothcanbelong-termfinancialinstruments.B)Theybothinvolveaclaimontheissuer'sincome.C)Theybothenableacorporationtoraisefunds.D)Alloftheabove.E)OnlyAandBoftheabove.11)Themoneymarketisthemarketinwhich_________aretraded.A)newissuesofsecuritiesB)previouslyissuedsecuritiesC)short-termdebtinstrumentsD)long-termdebtandequityinstruments12)Long-termdebtandequityinstrumentsaretradedinthe_________market.A)primaryB)secondaryC)capitalD)money13)Whichofthefollowingareprimarymarkets?A)TheNewYorkStockExchangeB)TheU.S.governmentbondmarketC)Theover-the-counterstockmarketD)TheoptionsmarketsE)Noneoftheabove14)Whichofthefollowingaresecondarymarkets?A)TheNewYorkStockExchangeB)TheU.S.governmentbondmarketC)Theover-the-counterstockmarketD)TheoptionsmarketsE)Alloftheabove15)AcorporationacquiresnewfundsonlywhenitssecuritiesaresoldintheA)secondarymarketbyaninvestmentbank.B)primarymarketbyaninvestmentbank.C)secondarymarketbyastockexchangebroker.D)secondarymarketbyacommercialbank.16)IntermediarieswhoareagentsofinvestorsandmatchbuyerswithsellersofsecuritiesarecalledA)investmentbankers.B)traders.C)brokers.D)dealers.E)noneoftheabove.17)IntermediarieswholinkbuyersandsellersbybuyingandsellingsecuritiesatstatedpricesarecalledA)investmentbankers.B)traders.C)brokers.D)dealers.E)noneoftheabove.18)AnimportantfinancialinstitutionthatassistsintheinitialsaleofsecuritiesintheprimarymarketistheA)investmentbank.B)commercialbank.C)stockexchange.D)brokeragehouse.19)Whichofthefollowingstatementsaboutfinancialmarketsandsecuritiesaretrue?A)Mostcommonstocksaretradedover-the-counter,althoughthelargestcorporationshavetheirsharestradedatorganizedstockexchangessuchastheNewYorkStockExchange.B)Acorporationacquiresnewfundsonlywhenitssecuritiesaresoldintheprimarymarket.C)Moneymarketsecuritiesareusuallymorewidelytradedthanlonger-termsecuritiesandsotendtobemoreliquid.D)Alloftheabovearetrue.E)OnlyAandBoftheabovearetrue.20)Whichofthefollowingstatementsaboutfinancialmarketsandsecuritiesaretrue?A)Abondisalong-termsecuritythatpromisestomakeperiodicpaymentscalleddividendstothefirm'sresidualclaimants.B)Adebtinstrumentisintermediatetermifitsmaturityislessthanoneyear.C)Adebtinstrumentislongtermifitsmaturityistenyearsorlonger.D)Thematurityofadebtinstrumentisthetime(term)thathaselapsedsinceitwasissued.21)Whichofthefollowingstatementsaboutfinancialmarketsandsecuritiesaretrue?A)Fewcommonstocksaretradedover-the-counter,althoughtheover-the-countermarketshavegrowninrecentyears.B)Acorporationacquiresnewfundsonlywhenitssecuritiesaresoldintheprimarymarket.C)Capitalmarketsecuritiesareusuallymorewidelytradedthanlongertermsecuritiesandsotendtobemoreliquid.D)Alloftheabovearetrue.E)OnlyAandBoftheabovearetrue.22)Whichofthefollowingmarketsissometimesorganizedasanover-the-co