1.归纳解析

所有above@both are true 都选above all @true除了

To encourage depository institutions to borrow,the central bank can（B）

A.increasr the requored reseve ratio

B.decrease the discount rate

C.sell securities

D.All of the above

1.The flow of money from net lenders or financial intermediaries to net borrowers in a given time period is called(A)

A.criedit

2.Increases in credit cause(B)

B.increases in income and increases in spending

3.Decreases in credit cause(D)

D.decreases in income and decreases in spending

5.To the extent that lending bypasses domestic depository institutions,the linkage between money and economic activity may by （B）

B.weakened

6.Historical data suggests that a sustained and significant rise in money supply or credit growth will tend to（A）output growth and,with a lag,tend at times to （A）tne inflation rate.

A.raise,raise

7.The cost of credit is all of the following except（C）

C.equivalent to the supply of money

8.Fluctuations in economic activity are（A）related to money and credit flows.

A.strongly

9.Which of the following id true?（A）

A.In recent decades,the banking system has been getting a declining share of credit extension

10.Which of the following actions would not cause credit to increase,ceteris paribus?（A）

A.Increases in the prime rate

2.（C）represents the value today of funds to be received or lent on a future date.

C.The present value

3.If Erik lends Dan $5,000 and Dan agrees to repay Erik $6,000 in 1 year's time,the $5,000 is the （C）

C.principal

4.Which of these questions does discounting answer?（A）

A.What is the present value of money to be paid in the future

B.What is the future value value of money to be paid in the future

C.What is the future value of money to be paid in the present

D.None of the above

5.The periodic payments made to bondholders is called the （B）

B.coupon payment

6.Coupon payments are equal to the （A）

A.Coupon rate on a bond multiplied by the face value of the bond

8.A bond sells at （D）because interest rates have increased since the bond was originally issued.

D.a discoynt from par

9.If a bond is sold at a discount from par,this （C）

C.raises the yield on thw bond

10.In general,if bond prices are rising,then interest rates are（B）

B.falling

1.The number of units of foreign currency that can be acquired with one unit of domestic money is called the（A）

A.exchange rate

2.If the dollar appreciates relative to the yen,which of the following is true（A）

A.the dollar's purchasing power in trems of yen has increased

B.the dollar's purchading power in terms of yen has decreased

C.a dollar previously worth 100 yen,would now be worth less than 100 yen

D.Both B and C

3.A depreciation of the dollar will（A）

A.lower the foreigb currency price of U.S. goods in foreign markets

B.increase the foreign currency price of U.S. goods in foreign markets

C.lower the dollar price of foreign goods in the United States

D.Both B and C

4.Which of the following ,ceteris paribus,will cause the yen to appreciate?（B）

B.An increase in foreign inflation

5.An increase in real income in the United States will（B）

B.increase the supply of follars

6.A change in foreign interest rates relative to U.S. interest rates will（D）

D.increase or decrease the demand or supply of dollars in the foreign exchang market

7.A change in foeign real incomes will（D）

D.increase or decrease the demand for dollars in the foreign exchange market

8.As the dollar appreciates,holding all other factors constant,dollar prices of foreign goods（A）

A.decrease

9.When the dollar appreciates,which of the following generally occurs in U.S.A.?（C）

C.Imports increase

10.If an American-made drum set cost $2,500and the dollar depreciated,the foreign price of the drum set would tend to（C）

C.decrease

2.Financial markets have the basic funtion of （A）

A.bringing together people with funds to lend and people who want toborrow funds

B.assuring that the swings in the business cycle are less pronounced

C.assuring that government need never redort to printing money

D.Both A and B of the above

3.Which of the following can be described as involving direct finance?（B）

A.A corporation's stock is traded in an over-the-counter market

B.A corporation buys commercial paper issued by another corporation

C.A pension fund manager buys commercial paper from the issuing corporation

D.Both A and B of the above

4.The money msrket is the market in whivh（C）are traded.

C.short-term debt intrument

5.A corporation acquires new funds only when its securities are sold in the （B）

B.primary market by an investment bank

6.Preferred stockholders hold a claim on assets that has priority over the claims of（C）

https://www.sodocs.net/doc/92562574.html,mon stockholdes,but after that of bondholders

9.The primary reason that individuals and firms choose to borrow long-term is to reduce the risk that interest rates will （A）begore they pay off their debt.

A.rise

10.A firm that chooses to finance a new plant by issuing money market securities（C）

C.incurs both the cost of reissuing securities and the ridk of having to pay higher interest rateson the new debt

1.Which of the following is a contractual saving institution?（A）

A.A life insurance company

2.Which of the following can be described ad involving indirect finance?

A.A bank buys a U.S. Treasury bill from one of its depositors

B.A corporation buys commercial paper issued by another corporation

C.A pension fund manager buys commercial paper in primary market

D.Both A and C

3.The purpose of diversification is to（B）

B.reduce the volatility of a portfolio's return

4.An investor who puts all her funds into one asset（C）her portfolio's（C）.

C.decrease;diversification

5.Through risk-sharing activities,a financial intermediary（D）its own risk and （D）the risks of its customers.

D.increase;reduces

6.The presence of （C）in financial market leads to afverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.

C.asymmetric information

7.Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks,thereby reducing losses due to（B）

B.adverse selection

9.When the lender and the borrower have different amount of information regarding a transaction,（B）is said to exist.

B.asymmetric information

10.When the potential borrowers who are the most likely to default are the ones most actively seeking a loan,（B）is said to exist.

B.adverse selection

1.The Peoole's Bank of china has been divided into （D）regional branches since 1999.

D.9

2.（B）has the right to downfrade the rate of performance of financial organizations.

B.Central bank

3.Central bank has all the following businesses except（A）

A.off balance-sheet activities

4.Who is the primary regulator of national banks that are holding companies in the United States?

C.The Federal Reserve System

5.The central bank is frequently termed the “government's bank”,because（B）

B.it manages the government borrowing by means of the issues of treasury bills and gilt-edged stocks.（金边债券）

6.Which of the following is the central bank of the United States?（D）

D.The Federal Reserve System

7.Which of the following is the function of issuing bank?（B）

B.Issuing currency

8.Which of the following is not the functions of central bank?（C）

C.Management's bank

9.Which of the followingis the asset business of a central bank?（D）

D.Foreign exchanges and gold reserves

10.Which of the following is the funds clearing business of central banks?（A）

A.Money transfers businesses

1.The(A)suggests that individual will dwmand to hold money when interest rates are low (bond prices high)to avoide capital losses when interest rates rise,and to hold bondswhen interest rates are high (bond prices low)to capture capital gains when interest rates fall.

A.speculative demand for money

2.The(B)suggests that individual will demand to hold money in anticipation of unforeseen opportunities or threats.

B.precautionary motive

3.The (C)suggests that individuals will demand to hold money in anticipation of the need to make payment.

C.transaction motive

4.The(D)is a theory of the demand for money developed by John Maynard Keynes that rrsults in an inverse relationship between the quantity of money demanded and theinterest rate.

D.liquidity preference theory

5.Which of the following motives for holding money is related to the example of holding extra money in your checking account just in case your car needs to be repaired?(B)

B.Precautionary motive

6.Real income is best defined as (B)

B.nominal income divided by a price index

7.Ceteris paribus,what would happen toreal money balances if all prices,including input prices(incomes)and output prices,doubled tomorrow?(D)

D.Nominal money balances would remain the same,the overall price level would double to 2p,and real money balances would fall to one-half their previous amount,M/2P

8.Household demand for real money balances increase when (A)

A.wealth increases

9.Which of the following is inversely related to demand for money?(C)

C.The liquidity of other financial assets

10.Ceteris paribus,if the price level increases by 20 percent,(C)

C.the nominal demand for money increase by 20 percent and the demand for real balances remains the same

1.How much can the banking system increase depoaits,given a reaerve ratio of 10 peecent,an initial injection of $1,000 worth of reserves,and no excess reserve or currency drain?(C)

C.$10,000

2.In the money supply process,open market operations initally affect(A)

A.the supply of reserves available to depository institions

3.When the Fed buys securities,reserves of depository institutions(B)

B.rise

4.When the Fed sells securities,reserves of depository institution(C)

C.fall

5.(C)is/are the reciprocal of the required reserve ratio(1/R d)

C.The simple money multiplier

https://www.sodocs.net/doc/92562574.html,mercial bank reserves can be held in the form(s) of(D)

D.vault cash and deposits at the Fed

7.Which of the following cause and effect relationships is true?(A)

A.An increase in reserves assets enables an increase in the supply of money

8.Depository institutions are required to hold reserve assets equal to a fraction of deposit liabilities.Thatfaction is called(B)

B.the required reserve ratio

9.Because depository institutions are profit driven ,excess reserves are used to qcquire(C)

C.assets

1.What is the name of the lending facility where depository institutions caught short of reserves can borrow?(B)

B.The discount window

2.Which of the following is false?(A)

A.Depository institutions never hold excess reserves

3.Depository institutions are required to hold reserve assets equal to a fraction of deposit liabilities.That fraction is called(A)

A.required reserves

4.To encourage depository institutions to borrow, the central bank can(B)

B.decrease the discount rate

5.A lower reserve requirement would tend to(D)

D.increase the money available for lending

6.Which of the following best decribes open market operation?

C.The buying and selling of government securities by the Fed to change the monetary base

7.What term is used for describing the buying and selling of government securities by the Fed?(C)

C.Open market operations

9.When the Fed sells securities,reserves of depository institutions(C)

C.fall