货币金融学英文试卷

Sample Exam (货币金融学2013-2014 Fall)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1)The upward and downward movement of aggregate output produced in the economy is referred to as the ____________.

i) ______

A) business cycle B) shock wave C) see saw D) roller coaster 2)Increasing the amount of information available to investors helps to reduce the problems of __________ a nd _________in the financial markets. 2) ______

A) adverse selection; economies of scale B) adverse selection; moral hazard C)

moral hazard; transactions costs D) adverse selection; risk sharing

3)When I purchase ______ , I own a portion of a firm and have the right to vote on issues important to the firm and to

elect its directors. 3) ______ A) bonds B) notes C) bills D) stock

4)Dennis notices that jackets are on sale for $99. In this case money is functioning as a _________ .4) _______

A) unit of account B) payments-system ruler C) store of value D) medium of exchange

5)When the inflation rate is expected to increase, the _______ for bonds falls, while the ________ curve shifts to the right, everything else held constant. 5) _________

A) supply; supply B) demand; demand C) supply; demand D) demand; supply 1) A

2) B 3) D 4) A 5) D

CALCULATION QUESTION.

(Please write down both the timeline from the borrower,s perspective and the present (or future) value formula for Annuity, before you proceed to do calculation exercises.)

1)You plan to buy a house for Y 1,000,000 Yuan. The bank requires that you pay 60% of the purchase price as a down payment.

Suppose you have 100,500 saved already, and you can afford to save an additional 50,000 per year at the end of each year. If you earn 7.25% per year on your savings, how long will it take you to save your down payment?

(ln(1.632)/ln(1.0725) = 7 )

2)Suppose the bank offers you a 30-year mortgage loan with equal monthly payments and an annual percentage interest rate

of 8.4% per year. Since you can borrow onlyY400,000 Yuan. What is the payment of your mortgage loan?

(Tips: converting the annual percentage rate to the loan rate per month. (1.007)360=12.32)

3)Suppose you have already paid for the mortgage loan for two years, how much do you still owe on the loan? (1.007)336=10.42

4)How much interest did you pay on the loan in the past year? (1.007)348=11.33