货币金融学chapter-2英文习题

1Copyright©2016PearsonEducation,Ltd.EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition(Mishkin)Chapter2AnOverviewoftheFinancialSystem2.1FunctionofFinancialMarkets1)Everyfinancialmarkethasthefollowingcharacteristic.A)Itdeterminesthelevelofinterestrates.B)Itallowscommonstocktobetraded.C)Itallowsloanstobemade.D)Itchannelsfundsfromlenders-saverstoborrowers-spenders.Answer:DAACSB:ReflectiveThinking2)FinancialmarketshavethebasicfunctionofA)gettingpeoplewithfundstolendtogetherwithpeoplewhowanttoborrowfunds.B)assuringthattheswingsinthebusinesscyclearelesspronounced.C)assuringthatgovernmentsneedneverresorttoprintingmoney.D)providingarisk-freerepositoryofspendingpower.Answer:AAACSB:ReflectiveThinking3)FinancialmarketsimproveeconomicwelfarebecauseA)theychannelfundsfrominvestorstosavers.B)theyallowconsumerstotimetheirpurchasebetter.C)theyweedoutinefficientfirms.D)theyeliminatetheneedforindirectfinance.Answer:BAACSB:ReflectiveThinking4)Well-functioningfinancialmarketsA)causeinflation.B)eliminatetheneedforindirectfinance.C)causefinancialcrises.D)allowtheeconomytooperatemoreefficiently.Answer:DAACSB:ReflectiveThinking5)AbreakdownoffinancialmarketscanresultinA)financialstability.B)rapideconomicgrowth.C)politicalinstability.D)stableprices.Answer:CAACSB:ReflectiveThinking2Copyright©2016PearsonEducation,Ltd.6)Theprincipallender-saversareA)governments.B)businesses.C)households.D)foreigners.Answer:CAACSB:ApplicationofKnowledge7)Whichofthefollowingcanbedescribedasdirectfinance?A)Youtakeoutamortgagefromyourlocalbank.B)Youborrow$2500fromafriend.C)Youbuysharesofcommonstockinthesecondarymarket.D)Youbuysharesinamutualfund.Answer:BAACSB:AnalyticalThinking8)Assumethatyouborrow$2000at10%annualinteresttofinanceanewbusinessproject.Forthisloantobeprofitable,theminimumamountthisprojectmustgenerateinannualearningsisA)$400.B)$201.C)$200.D)$199.Answer:BAACSB:AnalyticalThinking9)Youcanborrow$5000tofinanceanewbusinessventure.Thisnewventurewillgenerateannualearningsof$251.ThemaximuminterestratethatyouwouldpayontheborrowedfundsandstillincreaseyourincomeisA)25%.B)12.5%.C)10%.D)5%.Answer:DAACSB:AnalyticalThinking10)Whichofthefollowingcanbedescribedasinvolvingdirectfinance?A)Acorporationissuesnewsharesofstock.B)Peoplebuysharesinamutualfund.C)Apensionfundmanagerbuysashort-termcorporatesecurityinthesecondarymarket.D)Aninsurancecompanybuyssharesofcommonstockintheover-the-countermarkets.Answer:AAACSB:AnalyticalThinking3Copyright©2016PearsonEducation,Ltd.11)Whichofthefollowingcanbedescribedasinvolvingdirectfinance?A)Acorporationtakesoutloansfromabank.B)Peoplebuysharesinamutualfund.C)Acorporationbuysashort-termcorporatesecurityinasecondarymarket.D)Peoplebuysharesofcommonstockintheprimarymarkets.Answer:DAACSB:AnalyticalThinking12)Whichofthefollowingcanbedescribedasinvolvingindirectfinance?A)Youmakealoantoyourneighbor.B)Acorporationbuysashareofcommonstockissuedbyanothercorporationintheprimarymarket.C)YoubuyaU.S.TreasurybillfromtheU.S.TreasuryatTreasuryDirect.gov.D)Youmakeadepositatabank.Answer:DAACSB:AnalyticalThinking13)Whichofthefollowingcanbedescribedasinvolvingindirectfinance?A)Youmakealoantoyourneighbor.B)Youbuysharesinamutualfund.C)YoubuyaU.S.TreasurybillfromtheU.S.TreasuryatTreasuryDirect.gov.D)Youpurchasesharesinaninitialpublicofferingbyacorporationintheprimarymarket.Answer:BAACSB:AnalyticalThinking14)Securitiesare________forthepersonwhobuysthem,butare________fortheindividualorfirmthatissuesthem.A)assets;liabilitiesB)liabilities;assetsC)negotiable;nonnegotiableD)nonnegotiable;negotiableAnswer:AAACSB:ReflectiveThinking15)With________finance,borrowersobtainfundsfromlendersbysellingthemsecuritiesinthefinancialmarkets.A)activeB)determinedC)indirectD)directAnswer:DAACSB:ApplicationofKnowledge4Copyright©2016PearsonEducation,Ltd.16)Withdirectfinance,fundsarechanneledthroughthefinancialmarketfromthe________directlytothe________.A)savers,spendersB)spenders,investorsC)borrowers,saversD)investors,saversAnswer:AAACSB:ReflectiveThinking17)Distinguishbetweendirectfinanceandindirectfinance.WhichoftheseisthemostimportantsourceoffundsforcorporationsintheUnitedStates?Answer:Withdirectfinance,fundsflowdirectlyfromthelender/savertotheborrower.Withindirectfinance,fundsflowfromthelender/savertoafinancialintermediarywhothenchannelsthefundstotheborrower/investor.Financialintermediaries(indirectfinance)arethemajorsourceoffundsforcorporationsintheU.S.AACSB:ReflectiveThinking2.2StructureofFinancialMarkets1)WhichofthefollowingstatementsaboutthecharacteristicsofdebtandequityisFALSE?A)Theycanbothbelong-termfinancialinstruments.B)Theycanbothbeshort-termfinancialinstruments.C)Theybothinvolveaclaimontheissuer'sincome.D)Theybothenableacorporationtoraisefunds.Answer:BAACSB:ReflectiveThinking2)WhichofthefollowingstatementsaboutthecharacteristicsofdebtandequitiesisTRUE?A)Theycanbothbelong-termfinancialinstruments.B)Bondholdersareresidualclaimants.C)Theincomefrombondsistypicallymorevariablethanthatfromequities.D)Bondspaydividends.Answer:AAACSB:ReflectiveThinking3)Whichofthefo