经济学原理对应练习Ch 26.docx
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经济学原理对应练习Ch26
Chapter26
Saving,Investment,andtheFinancialSystem
MultipleChoice
1.Whenopeningarestaurantyoumayneedtobuyovens,freezers,tables,andcashregisters.Economistscalltheseexpenditures
a.capitalinvestment.
b.investmentinhumancapital.
c.businessconsumptionexpenditures.
d.Noneoftheaboveiscorrect.
ANS:
APTS:
1DIF:
1REF:
26-1
TOP:
InvestmentMSC:
Interpretive
2.WhenacountrysavesalargerportionofitsGDP,itwillhave
a.morecapitalandhigherproductivity.
b.morecapitalandlowerproductivity.
c.lesscapitalandhigherproductivity.
d.lesscapitalandlowerproductivity.
ANS:
APTS:
1DIF:
1REF:
26-1
TOP:
InvestmentMSC:
Definitional
3.Institutionsintheeconomythathelptomatchoneperson'ssavingwithanotherperson'sinvestmentarecollectivelycalledthe
a.FederalReservesystem.
b.bankingsystem.
c.monetarysystem.
d.financialsystem.
ANS:
DPTS:
1DIF:
1REF:
26-1
TOP:
FinancialsystemMSC:
Definitional
4.Lekeisha'sincomeexceedsherexpenditures.Lekeishaisa
a.saverwhodemandsmoneyfromthefinancialsystem.
b.saverwhosuppliesmoneytothefinancialsystem.
c.borrowerwhodemandsmoneyfromthefinancialsystem.
d.borrowerwhosuppliesmoneytothefinancialsystem.
ANS:
BPTS:
1DIF:
2REF:
26-1
TOP:
SupplyofloanablefundsMSC:
Definitional
5.Whichofthefollowingisnotcorrect?
a.Whenacountrysavesmore,ithasmorecapital.
b.Asupplierofloanablefundsborrowsmoney.
c.Theinterestrateadjuststobalancethequantitysuppliedofandthequantitydemandedofloanablefunds.
d.IfMarybuysequipmentforherfactory,Maryisengagingincapitalinvestment.
ANS:
BPTS:
1DIF:
1REF:
26-1
TOP:
Investment|Capital|MarketforloanablefundsMSC:
Definitional
6.Lucystartsherownpsychiatricpractice,butherexpenditurestoopenthepracticeexceedherincome.Lucyisa
a.saverwhodemandsmoneyfromthefinancialsystem.
b.saverwhosuppliesmoneytothefinancialsystem.
c.borrowerwhodemandsmoneyfromthefinancialsystem.
d.borrowerwhosuppliesmoneytothefinancialsystem.
ANS:
CPTS:
1DIF:
1REF:
26-1
TOP:
SupplyofloanablefundsMSC:
Definitional
7.Abondisa
a.financialintermediary.
b.certificateofindebtedness.
c.certificateofpartialownershipinanenterprise.
d.Noneoftheaboveiscorrect.
ANS:
BPTS:
1DIF:
1REF:
26-1
TOP:
BondsMSC:
Definitional
8.Whichofthefollowingwouldbeanexampleofdirectfinance?
a.Asaverbuyssharesinamutualfund.
b.Asaverdepositsmoneyintoacreditunion.
c.Asaverbuysabondacorporationhasjustissuedsoitcanpurchasecapital.
d.Noneoftheaboveiscorrect.
ANS:
CPTS:
1DIF:
1REF:
26-1
TOP:
Bonds|DirectfinanceMSC:
Interpretive
9.Acertificateofindebtednessthatspecifiestheobligationsoftheborrowertotheholderiscalleda
a.bond.
b.stock.
c.mutualfund.
d.Alloftheabovearecorrect.
ANS:
APTS:
1DIF:
1REF:
26-1
TOP:
BondsMSC:
Definitional
10.Ifthegovernment'sexpendituresexceededitsreceipts,itwouldlikely
a.lendmoneytoabankorotherfinancialintermediary.
b.borrowmoneyfromabankorotherfinancialintermediary.
c.buybondsdirectlyfromthepublic.
d.sellbondsdirectlytothepublic.
ANS:
DPTS:
1DIF:
2REF:
26-1
TOP:
Bonds|DirectfinanceMSC:
Interpretive
11.MegasoftwantstofinancethepurchaseofnewequipmentfordevelopingsecuritysoftwarecalledDoors,buttheyhavelimitedinternalfunds.Megasoftwilllikely
a.demandloanablefundsbybuyingbonds.
b.demandloanablefundsbysellingbonds.
c.supplyloanablefundsbybuyingbonds.
d.supplyloanablefundsbysellingbonds.
ANS:
BPTS:
1DIF:
2REF:
26-1
TOP:
Investment|MarketforloanablefundsMSC:
Interpretive
12.SkylineChiliwantstofinancethepurchaseofnewequipmentforitsrestaurants,buttheyhavelimitedinternalfunds.Skylinewilllikely
a.demandloanablefundsbybuyingbonds.
b.demandloanablefundsbysellingbonds.
c.supplyloanablefundsbybuyingbonds.
d.supplyloanablefundsbysellingbonds.
ANS:
BPTS:
1DIF:
2REF:
26-1
TOP:
Investment|MarketforloanablefundsMSC:
Interpretive
13.IfProctorandGamblesellsabonditis
a.borrowingdirectlyfromthepublic.
b.borrowingindirectlyfromthepublic.
c.lendingdirectlytothepublic.
d.lendingindirectlytothepublic.
ANS:
APTS:
1DIF:
2REF:
26-1
TOP:
Bonds|DirectfinanceMSC:
Interpretive
14.Whichofthefollowingiscorrect?
a.Thematurityofabondreferstotheamounttobepaidback.
b.Theprincipalofthebondreferstothepersonsellingthebond.
c.Abondbuyercannotsellabondbeforeitmatures.
d.Noneoftheaboveiscorrect.
ANS:
DPTS:
1DIF:
1REF:
26-1
TOP:
BondsMSC:
Definitional
15.Whichofthefollowingisnotanonsensicalheadline?
a.Britishperpetuitiesabouttomature.
b.Disneyissuesnewbondswithtermof$1,000each.
c.Governmentbondscurrentlypaylessinterestthancorporatebonds.
d.StandardandPoor'sjudgesnewjunkbondtohaveverylowcreditrisk.
ANS:
CPTS:
1DIF:
2REF:
26-1
TOP:
BondsMSC:
Interpretive
16.Thelengthoftimeuntilabondmaturesiscalledthe
a.perpetuity.
b.term.
c.maturity.
d.intermediation.
ANS:
BPTS:
1DIF:
1REF:
26-1
TOP:
Bonds|TermMSC:
Definitional
17.Aperpetuityisdistinguishedfromotherbondsinthatit
a.payscontinuouslycompoundedinterest.
b.paysinterestonlywhenitmatures.
c.nevermatures.
d.willbeusedtopurchaseanotherbondwhenitmaturesunlesstheownerspecifiesotherwise.
ANS:
CPTS:
1DIF:
1REF:
26-1
TOP:
PerpetuityMSC:
Definitional
18.Whichofthefollowingiscorrect?
a.Somebondshavetermsasshortasafewmonths.
b.Becausetheyaresorisky,junkbondspayalowrateofinterest.
c.Corporationsbuybondstoraisefunds.
d.Alloftheabovearecorrect.
ANS:
APTS:
1DIF:
1REF:
26-1
TOP:
BondsMSC:
Interpretive
19.Whichofthefollowingisnotcorrect?
a.Ifyoubuyabondfromacorporation,youcansellthebondtosomeoneelsebeforeitmatures.
b.Datetomaturityreferstotheschedulingofperiodicinterestratepaymentsonabond.
c.AbondisanIOU.
d.TherearemillionsofdifferentbondsintheU.S.economy.
ANS:
BPTS:
1DIF:
1REF:
26-1
TOP:
BondsMSC:
Definitional
20.Abondthatnevermaturesisknownasa
a.perpetuity.
b.anintermediarybond.
c.anindexedbond.
d.ajunkbond.
ANS:
APTS:
1DIF:
1REF:
26-1
TOP:
PerpetuityMSC:
Definitional
21.Whichofthefollowingiscorrect?
a.Lenderssellbondsandborrowersbuythem.
b.Long-termbondsusuallypayalowerinterestratethandoshort-termbondsbecauselong-termbondsareriskier.
c.Junkbondsrefertobondsthathavebeenresoldmanytimes.
d.Noneoftheaboveiscorrect.
ANS:
DPTS:
1DIF:
1REF:
26-1
TOP:
BondsMSC:
Definitional
22.Long-termbondsaregenerally
a.lessriskythanshort-termbondsandsopayhigherinterest.
b.lessriskythanshort-termbondsandsopaylowerinterest.
c.moreriskythanshort-termbondsandsopayhigherinterest.
d.moreriskythanshort-termbondsandsopaylowerinterest.
ANS:
CPTS:
1DIF:
1REF:
26-1
TOP:
BondsandriskMSC:
Definitional
23.Comparedtolong-termbonds,otherthingsthesame,short-termbondsgenerallyhave
a.moreriskandsopayhigherinterest.
b.lessriskandsopaylowerinterest.
c.lessriskandsopayhigherinterest.
d.aboutthesameriskandsopayaboutthesameinterest.
ANS:
BPTS:
1DIF:
1REF:
26-1
TOP:
BondsandriskMSC:
Definitional
24.Onwhichbondisdefaultmostlikely?
a.ajunkbond
b.amunicipalbond
c.aU.S.governmentbond
d.acorporatebondissuedbyProctorandGamble.
ANS:
APTS:
1DIF:
1REF:
26-1
TOP:
BondsandriskMSC:
Definitional
25.Assumingthatthebondsbelowhavethesametermandprincipalandthatthestateorlocalgovernmentwhichissuesthemunicipalbondhasagoodcreditrating,whichlisthasbondsorderedfromtheonethatpaysthemostinteresttotheonethatpaystheleastinterest?
a.corporatebond,municipalbond,U.S.governmentbond
b.corporatebond,U.S.governmentbond,municipalbond
c.municipalbond,U.S.governmentbond,corporatebond
d.U.S.governmentbond,municipalbond,corporatebond
ANS:
BPTS:
1DIF:
2REF:
26-1
TOP:
BondsandriskMSC:
Interpretive
26.Otherthingsthesame,asthematurityofabondbecomeslonger,thebondwillpay
a.lessinterestbecauseithaslessrisk.
b.lessinterestbecauseithasmorerisk.
c.moreinterestbecauseithasmorerisk
d.Thereisnorelationbetweentermtomaturityandrisk.
ANS:
CPTS:
1DIF:
2REF:
26-1
TOP:
BondsandriskMSC:
Interpretive
27.SupposethecityofCincinnatihasahighcreditrating.
a.Thehighcreditratingandthetaxstatusofmunicipalbondsshouldbothmaketheinterestratelowerthanotherwise.
b.Thehighcreditratingandthetaxstatusofmunicipalbondsshouldbothmaketheinterestratehigherthanotherwise.
c.Thehighcreditratingshouldmaketheinterestratehigherthanotherwise.Thetaxstatusofmunicipalbondsshouldmaketheinterestratelowerthanotherwise.
d.Thehighcreditratingshouldmaketheinterestratelowerthanotherwise.Thetaxstatusofmunicipalbondsshouldmaketheinterestratehigherthanotherwise.
ANS:
APTS:
1DIF:
2REF:
26-1
TOP:
InterestonbondsMSC:
Applicative
28.Municipalbondspayarelatively
a.lowrateofinterestbecauseoftheirhigh-defaultriskandbecausetheinteresttheypayissubjecttofederalincometax.
b.lowrateofinterestbecauseoftheirlow-defaultriskandbecausetheinteresttheypayisnotsubjecttofederalincometax.
c.highrateofinterestbecauseoftheirhigh-defaultriskandbecausefederaltaxesmustbepaido