Test 1
1. Which item below is not one of the five parts of the Financial System?
A) Money. B) Central banks. C) Financial Markets D) Financial Institutions. E) Credit cards.
2. The five core principles of Money and Banking include each of the following except? A) All people act rationally. B) Time has value. C) Information is the basis for decisions. D) Risk requires compensation. E) Markets set prices and allocate resources.
3. The statement \"risk requires compensation\" implies:
A) People only accept risk when they absolutely have to. D) People will pay to avoid risk.
B) People will only accept risk when they are rewarded for doing so. C) People do not take risk. E) b and d
4. Banks usually offer lower rates of interest to people willing to keep their funds in the bank for a short time because:
A) The banks really do not want these people as customers.
B) Banks really do not want a lot of people coming into the bank.
C) Bankers realize time has value and people need to be compensated if they are to keep their money in the bank longer. D) All of the above
5. Which of the following statements best describes financial markets?
A) Financial markets raise the cost and increase the speed of buying and selling financial instruments since people are earning fees for these transactions.
B) Financial markets increase the speed of buying and selling, and they also decrease the cost. C) Financial markets are a good example of unregulated markets. D) b and c
6. The New York Stock Exchange is an example of:
A) A financial instrument. B) A central bank. C) A financial market D) All of the above
7. When an individual obtains a student loan and makes all of the regular monthly payments, the sum of the payments made will exceed the initial amount of the loan. This is due primarily to the core principle:
A) Most people do not pay back student loans. B) Time has value E) Stability improves welfare. C) Markets are sometimes inefficient at allocating resources. D) Information is the basis for decisions.
8. Monetary policy is best described as:
A) Attempts to keep inflation constant. B) Determining the denominations and supply of a country's currency. C) One of the most important functions of Congress.
D) Attempts to keep inflation low and stable and growth high and stable.
9. The core principles of money and banking would imply that if more students didn't pay back their student loans:
A) Student loans may become more difficult to obtain. C) Fewer people may attend college. B) The interest rate on student loans would increase. D) All of the above.
10. A society without any money:
A) Would likely find people specializing more than they do now.
B) Would find people doing everything for themselves. C) Would have to rely strictly on barter. D) Would be more productive since people would be more self-sufficient.
11. While money is an asset not all assets are money because:
A) Money works as a means of payment. B) Only money stores value. C) Only money is a good asset to hold during times of inflation. D) For something to be money it must be legal tender.
12. In comparing money to a share of Microsoft stock held by an individual we can say: A) The stock is an asset but money is not. B) Both are stores of value. C) Money is an asset but the stock is a liability of the individual D) The stock is a store of value but the money isn't.
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13. Which of the following could be used as commodity money:
A) $20 dollar bills. B) Gold coins. C) Checking deposits. D) All of the above.
14. Checks are:
A) A means of payment. B) Money. C) Not a promise of any kind. D) Not acceptable by the U.S. Government for payment of taxes.
15. Money aggregates can best be defined as:
A) The amount of money the Federal Reserve is targeting for the economy. B) The amount of money measured at a particular point in time.
C) The average amount of money available to the economy over a year.
D) The amount of U.S. currency the Bureau of Printing and Engraving has produced.
16. The money aggregate M1 does not include:
A) Currency in the hands of the public. B) Traveler's checks that have been issued.
C) Currency in the vaults of commercial banks. D) Demand deposits at commercial banks.
17. The money aggregate M2 includes each of the following EXCEPT:
A) Small denomination time deposits. B) Retail Money Market Mutual fund shares C) U.S. Treasury bills. D) M1
18. Economists study the link between money and inflation because:
A) Research shows that there is some inverse correlation between the supply of money and inflation. B) Economists believe that inflation in the 3-5% range is healthy for an economy. C) As prices increase money becomes more valuable.
D) Research shows that there is some direct correlation between the supply of money and inflation.
19. Tom uses a credit card to purchase a new pair of jeans, Tom is: A) Using money to buy his jeans since credit cards are money. B) Using a form of money included in M3.
C) Is using an electronic payment form of money that is in the category of checking deposits. D) Creating a liability that he will ultimately have to pay with money.
20. A Financial Intermediary:
A) Is an agency that guarantees a loan. B) Is involved in direct finance. C) Would be used in indirect finance D) None of the above.
21. John obtains a home improvement loan from New Town Bank: A) The loan is John's asset and the bank's liability.
B) The loan is John's asset, but the liability belongs to the bank's depositors. C) The loan is John's liability and an asset for New Town Bank.
D) The loan is John's liability and a liability of the bank until Tom pays it off.
22. Which of the following is NOT a financial instrument:
A) A share of General Motors stock. B) A tuition bill. C) A U.S. Treasury Bond. D) A home insurance policy. E) A life insurance policy.
23. The shares of McDonald Corporation stock are examples of:
A) A standardized financial instrument. B) A standardized financial liability instrument. C) A non-standardized financial instrument since their prices can differ over time. D) A means of payment.
24. Asymmetric Information in financial markets is a potential problem usually resulting from: A) People basically being dishonest. B) The lenders having more information than borrower. C) The borrowers having more information than the lenders, and not disclosing this information. D) The uncertainty of Federal Reserve monetary policy.
25. Commissions paid to an insurance broker are an example of:
A) Risk transfer. B) Information asymmetry. C) Transaction costs. D) All of the above.
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Test 3
1. Which of the following best expresses the formula for determining the price of a U.S. Treasury bill per $100 of face vale:
A. $100(1 + i) B. $100/(1 + i)n C. $100/(1 + i) D. 1 + $100/(1 + i)n
2. When the current yield and the coupon rate are equal: A. The bond is purchased at a price that equals the face value.
B. The bond is purchased at a discount. C. The bond is a zero coupon bond. D. The bond is purchased at a price that exceeds face value.
3. Which of the following best expresses the equation for holding period return: A. Current yield – coupon rate. B. Yield to maturity + Current yield C. Coupon rate + Capital gain. D. Current yield + Capital gain.
4. When expected inflation increases for any given nominal interest rate: A. The real cost of repayment for bond issuers decreases.
B. The real return for bondholders increases. D. The bond demand curve shifts right. C. The real cost of repayment for bond issuers increases. E. b and d
5.The fact that common stockholders are residual claimants means:
A.the stockholders receive their dividends before any other residuals are paid. B.the stockholders receive the remains after everyone else is paid.
C.the stockholders are paid any past due dividends before other claims are paid. D.the common stockholders are responsible for all corporate debts.
6. The concept of limited liability says a stockholder of a corporation: A.is liable for the corporation's liabilities, but nothing more. B.cannot receive dividends that exceed their investment.
C.cannot own more than fiver percent of any public corporation. D.cannot lose more than their investment.
7. The Dow Jones Industrial Average is an example of: A.a simple average. B.a value weighted index. C.a price-weighted index. D.a secondary market.
8. You start with a $1000 portfolio; it loses 40% over the next year, the following year it gains 50% in value; At the end of two years your portfolio is worth: A.$900 B.$600 C.$1000 D.$1100
9. Derivatives are financial instruments that:
A.present low levels of risk and are used by people who otherwise couldn't purchase the financial assets.
B.when used correctly can actually lower risk.
C.should only be used by people seeking high returns from high risk. D.a and b
10. The short position in a futures contract represents the party that will: A.accept the risk. B.ultimately suffer the loss.
C.deliver a commodity or financial instrument to the buyer at a future date. D.benefit from increases in price of the underlying asset.
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11. A farmer who must purchase his inputs now but will sell his corn at a market price at a future date:
A.faces a market risk that cannot be offset.
B.is a good example of what the chapter refers to as a speculator. C.would hedge by taking the short position in a corn futures contract. D.would hedge by taking the long position in a corn futures contract.
12.If the Japanese yen depreciates against the U.S. dollar:
A.American should find Japanese goods are now more expensive.
B.Japanese residents would find Japanese goods are relatively less expensive than American goods.
C.US goods should have an easier time competing against Japanese goods in both countries. D.Japanese goods should have an easier time competing against U.S. goods in both countries. E.b and d
13. The Law of One Price:
A.is based on the law of diminishing marginal returns. B.applies only to financial assets and not real assets.
C.can explain long run exchange rates but not short-run exchange rates.
D.is more of a mathematical concept but not useful in explaining exchange rates.
14. Differences in inflation rates between two countries can:
A.explain long run changes in the exchange rate but not short run changes.
B.explain changes in the real exchange rate over the long run, but not changes in the nominal exchange rate.
C.explain well short run changes in the exchange rate but not long run changes. D.none of the above.
15. When a currency is described as overvalued, this implies:
A.It is overvalued relative to what the describer believes purchasing power parity to be. B.It is overvalued relative to the exchange rate set by the nation's central bank. C.The exchange rate is greater than one.
D.The exchange rate is lower than one year previous.
风险练习题
42.All other factors held constant:
A. An investment with less risk should sell for a lower price and offer a lower return. B. An investment with more risk should sell for a lower price and offer a higher return. C. An investment with less risk should sell for a lower price and offer a higher return. D. An investment with more risk should offer a lower return and sell for a higher price. 42. If an investment will return $1000 ½ of the time and $600 ½ of the time, the expected
value of the investment is:
A. $1,600 B. $800 C. $400 D. None of the above.
43. Given a choice between two investments with the same expected payoff: A. Most people will select the one with the highest variance.
B. Most people will opt for the one with the higher standard deviation. C. Most people will be indifferent since the expected payoffs are the same. D. Most people will choose the one with the lower standard deviation. 44. A risk seeking investor versus a risk-neutral investor:
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A. Will always take a risk, while the risk neutral investor will not.
B. Needs less compensation for the same risk versus the risk neutral investor.
C. Will not take the same risks as the risk neutral investor if the expected returns are equal. D. None of the above.
45. A risk-averse investor will:
A. Always prefer an investment with a lower expected return.
B. Always prefer an investment with a certain return to one with the same expected return but any amount of uncertainty.
C. Always require a certain return.
D. Always focus exclusively on the expected return. 46. The risk premium for an investment:
A. Increases with risk. B. Is a fixed amount added to the risk free return.
C. Is negative for U.S. Treasury Securities. D. Is negative for risk averse investors. E. b and c
47. When the auto manufacturing industry does poorly due to a recession this is an
example of:
A. Idiosyncratic risk B. Systematic risk. C. Risk premium. D. Unique risk. 48. Diversification is the principle of: A. Holding more than one risk at a time. B. Reducing the risks we carry to just two. C. Creating risk to increase returns.
D. Eliminating investments from our portfolio that have idiosyncratic risk. 49. Spreading involves:
A. Finding assets whose returns are perfectly negatively correlated. B. Building a portfolio of assets whose returns move together. C. Investing in bonds and avoiding stocks during bad times. D. Adding assets to a portfolio that move independently. 42 43 44 45 46 47 48 49 50 B
B D B B A B A D 第八章股票练习题
1. A share of common stock represents:
A.a claim from a lender to a borrower. B.a share in the company's assets. C.a share of ownership of the company.
D.an unlimited liability to the owner of the stock.
2.The fact that common stockholders are residual claimants means:
A.the stockholders receive their dividends before any other residuals are paid. B.the stockholders receive the remains after everyone else is paid.
C.the stockholders are paid any past due dividends before other claims are paid. D.the common stockholders are responsible for all corporate debts.
3. The concept of limited liability says a stockholder of a corporation: A.is liable for the corporation's liabilities, but nothing more. B.cannot receive dividends that exceed their investment.
C.cannot own more than fiver percent of any public corporation. D.cannot lose more than their investment.
4. An index number is a valuable tool because:
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A.the number by itself provides all of the useful information needed.
B.the index provides a meaningful measurement scale to calculate percentage changes. C.the index is more stable than the data it reflects.
D.it does not require any calculations to compute percentage changes. 5. The Dow Jones Industrial Average is an example of:
A.a simple average. B.a value weighted index. C.a price-weighted index. D.a secondary market.
6. If The Dow Jones Industrial Average increases to 10250 from 9800; the percentage change in the index is:
A.0.459% B.4.59% C.0.00459% D.450.0% 7. The most broadly based stock index in use is:
A.the Dow Jones Industrial Average. B.the Nasdaq Composite Index. C.the Wilshire 5000. D.the Standard and Poor's 500 Index.
8. You start with a $1000 portfolio; it loses 40% over the next year, the following year it gains 50% in value; At the end of two years your portfolio is worth: A.$900 B.$600 C.$1000 D.$1100 9. The Theory of Efficient Markets:
A.allows for higher than average returns if the investor takes higher than average risk. B.says Insider-information makes markets less efficient. C.rules out high returns due to chance. D.assumes people have equal luck.
10. When stock prices reflect fundamental values: A.all investors will experience capital gains.
B.all companies will have an easier task of obtaining financing for investment projects. C.the allocation of resources will be more efficient.
D.the overall level of the stock market should move higher continuously. E.a and d 1 2 3 4 5 6 7 8 9 10 C B D B C B C A A C
现值终值练习题
29. The future value of $200 at a 5% per year interest rate at the end of one year is: A. $195.00 B. $210.00 C. $197.50
D. None of the above.
30. Which of the following best expresses the payment a lender receives for lending their money for four years: A. PV(1+i)4 B. PV/(1 + i)4 C. 4PV
D. None of the above.
31. A lender is promised a $100 payment (including interest. one year from today. If the lender has an 8% opportunity cost of money, she should be willing to accept what amount today: A. $100.00
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B. $108.20 C. $92.59 D. $96.40
32. Mary deposits funds into a CD at her bank. The CD has an annual interest of 4.0%. If Mary leaves the funds in the CD for entire two years she will have $1081.60. What amount is Mary depositing: A. $960.60 B. $900.00 C. $1005.00 D. $1000.00
33. The future value of $100 left in a savings account earning 4.5% for two and a half years is best expressed by:
A. $100(1.045)3/2 B. $100( 0.45)2.5 C. $100(1.045)2.5
D. $100 x 2.5 x (1.045)
34. The longer the time until the payment: A. The lower the present value.
B. The higher the present value because time is valuable. C. The lower must be the interest rate. D. None of the above.
35. An investment has grown from $100.00 to $160.00 or 60% over four years. What annual increase gives a 60% increase over four years: A. 7.50% B. 12.48% C. 15.00% D. 13.24%
36. People with a high discount rate will require: A. A higher interest rate to entice them to save. B. Investment options with longer maturities. C. A lower interest rate to entice them to save. D. a and b
37. If the internal rate of return from an investment is less than the opportunity cost of funds: A. The firm should make the investment. B. The firm should not make the investment.
C. The firm should only make the investment using retained earnings. D. None of the above.
38. An investment carrying a current cost of $130,000 is going to generate $70,000 of revenue for each of the next three years. To calculate the internal rate of return we need to:
A. Calculate the present value of each of the $70,000 payments and multiply these and set this equal to $130,000.
B. Take the present value of $210,000 for three years from now and set this equal to $130,000. C. Set the sum of the present value of $70,000 for each of the next three years equal to $130,000. D. Subtract $130,000 from $210,000 and set this difference equal to the interest rate.
39. The price of a bond is determined by:
A. Taking the present value of the bond's final payment and subtracting the coupon payments. B. Taking the present value of the coupon payments and adding this to the face value. C. Taking the present value of the bond's final payment.
D. Taking the sum of the present values of the future payments.
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40. If a bond has a face value of $1,000 and the bondholder receives coupon payments of $35.00 semi-annually, the bond's coupon rate is: A. 3.5% B. 7.0% C. 7.5%
D. Cannot be determined from the information provided.
41. Which formula below best expresses the nominal interest rate, (i)? A. i = r – πe B. r = i + πe C. i = r + πe D. πe = i + r
衍生品外汇与市场
11. Derivatives are financial instruments that:
A.present low levels of risk and are used by people who otherwise couldn't purchase the financial assets.
B.when used correctly can actually lower risk.
C.should only be used by people seeking high returns from high risk. D.a and b
12. The short position in a futures contract represents the party that will: A.accept the risk. B.ultimately suffer the loss.
C.deliver a commodity or financial instrument to the buyer at a future date. D.benefit from increases in price of the underlying asset.
13. A farmer who must purchase his inputs now but will sell his corn at a market price at a future date:
A.faces a market risk that cannot be offset.
B.is a good example of what the chapter refers to as a speculator. C.would hedge by taking the short position in a corn futures contract. D.would hedge by taking the long position in a corn futures contract. 14. The nominal exchange rate:
A.is measured in goods. B.is a synonymous term for the swap rate. C.is always expressed as units of a foreign currency per U.S. $.
D.is the rate that one can exchange the currency of one country for the currency of another country.
15.If the Japanese yen depreciates against the U.S. dollar:
A.American should find Japanese goods are now more expensive.
B.Japanese residents would find Japanese goods are relatively less expensive than American goods.
C.US goods should have an easier time competing against Japanese goods in both countries. D.Japanese goods should have an easier time competing against U.S. goods in both countries. E.b and d
16. If the current exchange rate is 1€/1$U.S. and bagels cost 1€ in France and 1$ in the U.S. and the current exchange rate for bagels is 1.15 European bagel/1US bagel and if the bagels are identical:
A.An American would be better off trading their bagels for European bagels. B.A person from France would be better off trading their bagels for U.S. bagels. C.The Theory of Purchasing Power Parity is working.
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D.a and c.
17. The Law of One Price:
A.is based on the law of diminishing marginal returns. B.applies only to financial assets and not real assets.
C.can explain long run exchange rates but not short-run exchange rates.
D.is more of a mathematical concept but not useful in explaining exchange rates. 18. Differences in inflation rates between two countries can:
A.explain long run changes in the exchange rate but not short run changes.
B.explain changes in the real exchange rate over the long run, but not changes in the nominal exchange rate.
C.explain well short run changes in the exchange rate but not long run changes. D.none of the above.
19. If Americans lose their taste for Mexican made goods, we should observe the following change(s. in the dollar-peso market: A.the supply curve of dollars shifts right. B.the demand curve for dollars shifts left. C.the supply curve of dollars shifts left. D.the demand curve for dollars shifts right. E.a and d.
20. When a currency is described as overvalued, this implies:
A.It is overvalued relative to what the describer believes purchasing power parity to be. B.It is overvalued relative to the exchange rate set by the nation's central bank. C.The exchange rate is greater than one.
D.The exchange rate is lower than one year previous.
11 12 13 14 15 16 17 18 19 20 B C C D E A C A C A
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