经济学原理对应练习Ch 26.doc

经济学原理对应练习Ch 26.doc

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Chapter26/Saving,Investment,andtheFinancialSystemv1125

Chapter26

Saving,Investment,andtheFinancialSystem

MultipleChoice

1. Whenopeningarestaurantyoumayneedtobuyovens,freezers,tables,andcashregisters.Economistscalltheseexpenditures

a. capitalinvestment.

b. investmentinhumancapital.

c. businessconsumptionexpenditures.

d. Noneoftheaboveiscorrect.

ANS:

A PTS:

1 DIF:

1 REF:

26-1

TOP:

Investment MSC:

Interpretive

2. WhenacountrysavesalargerportionofitsGDP,itwillhave

a. morecapitalandhigherproductivity.

b. morecapitalandlowerproductivity.

c. lesscapitalandhigherproductivity.

d. lesscapitalandlowerproductivity.

ANS:

A PTS:

1 DIF:

1 REF:

26-1

TOP:

Investment MSC:

Definitional

3. Institutionsintheeconomythathelptomatchoneperson'ssavingwithanotherperson'sinvestmentarecollectivelycalledthe

a. FederalReservesystem.

b. bankingsystem.

c. monetarysystem.

d. financialsystem.

ANS:

D PTS:

1 DIF:

1 REF:

26-1

TOP:

Financialsystem MSC:

Definitional

4. Lekeisha'sincomeexceedsherexpenditures.Lekeishaisa

a. saverwhodemandsmoneyfromthefinancialsystem.

b. saverwhosuppliesmoneytothefinancialsystem.

c. borrowerwhodemandsmoneyfromthefinancialsystem.

d. borrowerwhosuppliesmoneytothefinancialsystem.

ANS:

B PTS:

1 DIF:

2 REF:

26-1

TOP:

Supplyofloanablefunds MSC:

Definitional

5. Whichofthefollowingisnotcorrect?

a. Whenacountrysavesmore,ithasmorecapital.

b. Asupplierofloanablefundsborrowsmoney.

c. Theinterestrateadjuststobalancethequantitysuppliedofandthequantitydemandedofloanablefunds.

d. IfMarybuysequipmentforherfactory,Maryisengagingincapitalinvestment.

ANS:

B PTS:

1 DIF:

1 REF:

26-1

TOP:

Investment|Capital|Marketforloanablefunds MSC:

Definitional

6. Lucystartsherownpsychiatricpractice,butherexpenditurestoopenthepracticeexceedherincome.Lucyisa

a. saverwhodemandsmoneyfromthefinancialsystem.

b. saverwhosuppliesmoneytothefinancialsystem.

c. borrowerwhodemandsmoneyfromthefinancialsystem.

d. borrowerwhosuppliesmoneytothefinancialsystem.

ANS:

C PTS:

1 DIF:

1 REF:

26-1

TOP:

Supplyofloanablefunds MSC:

Definitional

7. Abondisa

a. financialintermediary.

b. certificateofindebtedness.

c. certificateofpartialownershipinanenterprise.

d. Noneoftheaboveiscorrect.

ANS:

B PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds MSC:

Definitional

8. Whichofthefollowingwouldbeanexampleofdirectfinance?

a. Asaverbuyssharesinamutualfund.

b. Asaverdepositsmoneyintoacreditunion.

c. Asaverbuysabondacorporationhasjustissuedsoitcanpurchasecapital.

d. Noneoftheaboveiscorrect.

ANS:

C PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds|Directfinance MSC:

Interpretive

9. Acertificateofindebtednessthatspecifiestheobligationsoftheborrowertotheholderiscalleda

a. bond.

b. stock.

c. mutualfund.

d. Alloftheabovearecorrect.

ANS:

A PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds MSC:

Definitional

10. Ifthegovernment'sexpendituresexceededitsreceipts,itwouldlikely

a. lendmoneytoabankorotherfinancialintermediary.

b. borrowmoneyfromabankorotherfinancialintermediary.

c. buybondsdirectlyfromthepublic.

d. sellbondsdirectlytothepublic.

ANS:

D PTS:

1 DIF:

2 REF:

26-1

TOP:

Bonds|Directfinance MSC:

Interpretive

11. MegasoftwantstofinancethepurchaseofnewequipmentfordevelopingsecuritysoftwarecalledDoors,buttheyhavelimitedinternalfunds.Megasoftwilllikely

a. demandloanablefundsbybuyingbonds.

b. demandloanablefundsbysellingbonds.

c. supplyloanablefundsbybuyingbonds.

d. supplyloanablefundsbysellingbonds.

ANS:

B PTS:

1 DIF:

2 REF:

26-1

TOP:

Investment|Marketforloanablefunds MSC:

Interpretive

12. SkylineChiliwantstofinancethepurchaseofnewequipmentforitsrestaurants,buttheyhavelimitedinternalfunds.Skylinewilllikely

a. demandloanablefundsbybuyingbonds.

b. demandloanablefundsbysellingbonds.

c. supplyloanablefundsbybuyingbonds.

d. supplyloanablefundsbysellingbonds.

ANS:

B PTS:

1 DIF:

2 REF:

26-1

TOP:

Investment|Marketforloanablefunds MSC:

Interpretive

13. IfProctorandGamblesellsabonditis

a. borrowingdirectlyfromthepublic.

b. borrowingindirectlyfromthepublic.

c. lendingdirectlytothepublic.

d. lendingindirectlytothepublic.

ANS:

A PTS:

1 DIF:

2 REF:

26-1

TOP:

Bonds|Directfinance MSC:

Interpretive

14. Whichofthefollowingiscorrect?

a. Thematurityofabondreferstotheamounttobepaidback.

b. Theprincipalofthebondreferstothepersonsellingthebond.

c. Abondbuyercannotsellabondbeforeitmatures.

d. Noneoftheaboveiscorrect.

ANS:

D PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds MSC:

Definitional

15. Whichofthefollowingisnotanonsensicalheadline?

a. Britishperpetuitiesabouttomature.

b. Disneyissuesnewbondswithtermof$1,000each.

c. Governmentbondscurrentlypaylessinterestthancorporatebonds.

d. StandardandPoor'sjudgesnewjunkbondtohaveverylowcreditrisk.

ANS:

C PTS:

1 DIF:

2 REF:

26-1

TOP:

Bonds MSC:

Interpretive

16. Thelengthoftimeuntilabondmaturesiscalledthe

a. perpetuity.

b. term.

c. maturity.

d. intermediation.

ANS:

B PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds|Term MSC:

Definitional

17. Aperpetuityisdistinguishedfromotherbondsinthatit

a. payscontinuouslycompoundedinterest.

b. paysinterestonlywhenitmatures.

c. nevermatures.

d. willbeusedtopurchaseanotherbondwhenitmaturesunlesstheownerspecifiesotherwise.

ANS:

C PTS:

1 DIF:

1 REF:

26-1

TOP:

Perpetuity MSC:

Definitional

18. Whichofthefollowingiscorrect?

a. Somebondshavetermsasshortasafewmonths.

b. Becausetheyaresorisky,junkbondspayalowrateofinterest.

c. Corporationsbuybondstoraisefunds.

d. Alloftheabovearecorrect.

ANS:

A PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds MSC:

Interpretive

19. Whichofthefollowingisnotcorrect?

a. Ifyoubuyabondfromacorporation,youcansellthebondtosomeoneelsebeforeitmatures.

b. Datetomaturityreferstotheschedulingofperiodicinterestratepaymentsonabond.

c. AbondisanIOU.

d. TherearemillionsofdifferentbondsintheU.S.economy.

ANS:

B PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds MSC:

Definitional

20. Abondthatnevermaturesisknownasa

a. perpetuity.

b. anintermediarybond.

c. anindexedbond.

d. ajunkbond.

ANS:

A PTS:

1 DIF:

1 REF:

26-1

TOP:

Perpetuity MSC:

Definitional

21. Whichofthefollowingiscorrect?

a. Lenderssellbondsandborrowersbuythem.

b. Long-termbondsusuallypayalowerinterestratethandoshort-termbondsbecauselong-termbondsareriskier.

c. Junkbondsrefertobondsthathavebeenresoldmanytimes.

d. Noneoftheaboveiscorrect.

ANS:

D PTS:

1 DIF:

1 REF:

26-1

TOP:

Bonds MSC:

Definitional

22. Long-termbondsaregenerally

a. lessriskythanshort-termbondsandsopayhigherinterest.

b. lessriskythanshort-termbondsandsopaylowerinterest.

c. moreriskythanshort-termbondsandsopayhigherinterest.

d. moreriskythanshort-termbondsandsopaylowerinterest.

ANS:

C PTS:

1 DIF:

1 REF:

26-1

TOP:

Bondsandrisk MSC:

Definitional

23. Comparedtolong-termbonds,otherthingsthesame,short-termbondsgenerallyhave

a. moreriskandsopayhigherinterest.

b. lessriskandsopaylowerinterest.

c. lessriskandsopayhigherinterest.

d. aboutthesameriskandsopayaboutthesameinterest.

ANS:

B PTS:

1 DIF:

1 REF:

26-1

TOP:

Bondsandrisk MSC:

Definitional

24. Onwhichbondisdefaultmostlikely?

a. ajunkbond

b. amunicipalbond

c. aU.S.governmentbond

d. acorporatebondissuedbyProctorandGamble.

ANS:

A PTS:

1 DIF:

1 REF:

26-1

TOP:

Bondsandrisk MSC:

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:

B PTS:

1 DIF:

2 REF:

26-1

TOP:

Bondsandrisk MSC:

Interpretive

26. Otherthingsthesame,asthematurityofabondbecomeslonger,thebondwillpay

a. lessinterestbecauseithaslessrisk.

b. lessinterestbecauseithasmorerisk.

c. moreinterestbecauseithasmorerisk

d. Thereisnorelationbetweentermtomaturityandrisk.

ANS:

C PTS:

1 DIF:

2 REF:

26-1

TOP:

Bondsandrisk MSC:

Interpretive

27. SupposethecityofCincinnatihasahighcreditrating.

a. Thehighcreditratingandthetaxstatusofmunicipalbondsshouldbothmaketheinterestratelowerthanotherwise.

b. Thehighcreditratingandthetaxstatusofmunicipalbondsshouldbothmaketheinterestratehigherthanotherwise.

c. Thehighcreditratingshouldmaketheinterestratehigherthanotherwise.Thetaxstatusofmunicipalbondsshouldmaketheinterestratelowerthanotherwise.

d. Thehighcreditratingshouldmaketheinterestratelowerthanotherwise.Thetaxstatusofmunicipalbondsshouldmaketheinterestratehigherthanotherwise.

ANS:

A PTS:

1 DIF:

2 REF:

26-1

TOP:

Interestonbonds MSC:

Applicative

28. Municipalbondspayarelatively

a. lowrateofinterestbecauseoftheirhigh-defaultriskandbecausetheinteresttheypayissubjecttofederalincometax.

b. lowrateofinterestbecauseoftheirlow-defaultriskandbecausetheinteresttheypayisnotsubjecttofederalincometax.

c. highrateofinterestbecauseoftheirhigh-defaul