米什金货币金融学英文版习题答案chapter1英文习题.docx

米什金货币金融学英文版习题答案chapter1英文习题.docx

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米什金货币金融学英文版习题答案chapter1英文习题

EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition（Mishkin）

Chapter1WhyStudyMoney,Banking,andFinancialMarkets?

1.1WhyStudyFinancialMarkets?

1）Financialmarketspromoteeconomicefficiencyby

A）channelingfundsfrominvestorstosavers.

B）creatinginflation.

C）channelingfundsfromsaverstoinvestors.

D）reducinginvestment.

Answer:

C

AACSB:

ReflectiveThinking

2）Financialmarketspromotegreatereconomicefficiencybychannelingfundsfrom

to.

A）investors;savers

B）borrowers;savers

C）savers;borrowers

D）savers;lenders

Answer:

C

AACSB:

ReflectiveThinking

3）Well-functioningfinancialmarketspromote

A）inflation.

B）deflation.

C）unemployment.

D）growth.

Answer:

D

AACSB:

ReflectiveThinking

4）Akeyfactorinproducinghigheconomicgrowthis

A）eliminatingforeigntrade.

B）well-functioningfinancialmarkets.

C）highinterestrates.

D）stockmarketvolatility.

Answer:

B

AACSB:

ReflectiveThinking

5）Marketsinwhichfundsaretransferredfromthosewhohaveexcessfundsavailabletothosewhohaveashortageofavailablefundsarecalled

A）commoditymarkets.

B）fund-availablemarkets.

C）derivativeexchangemarkets.

D）financialmarkets.

Answer:

D

AACSB:

ApplicationofKnowledge

6）marketstransferfundsfrompeoplewhohaveanexcessofavailablefundstopeople

whohaveashortage.

A）Commodity

B）Fund-available

C）Financial

D）Derivativeexchange

Answer:

C

AACSB:

ApplicationofKnowledge

7）Poorlyperformingfinancialmarketscanbethecauseof

A）wealth.

B）poverty.

C）financialstability.

D）financialexpansion.

Answer:

B

AACSB:

ReflectiveThinking

8）Thebondmarketsareimportantbecausetheyare

A）easilythemostwidelyfollowedfinancialmarketsintheUnitedStates.

B）themarketswhereforeignexchangeratesaredetermined.

C）themarketswhereinterestratesaredetermined.

D）themarketswhereallborrowersgettheirfunds.

Answer:

C

AACSB:

ReflectiveThinking

9）Thepricepaidfortherentalofborrowedfunds（usuallyexpressedasapercentageoftherentalof$100peryear）iscommonlyreferredtoasthe

A）inflationrate.

B）exchangerate.

C）interestrate.

D）aggregatepricelevel.

Answer:

C

AACSB:

ApplicationofKnowledge

10）Comparedtointerestratesonlong-termU.S.governmentbonds,interestratesonthree-monthTreasurybillsfluctuateandareonaverage.

A）more;lower

B）less;lower

C）more;higher

D）less;higher

Answer:

A

AACSB:

ReflectiveThinking

11）TheinterestrateonBaacorporatebondsis,onaverage,thaninterestrateson

Treasuries,andthespreadbetweentheseratesbecameinthe1970s.

A）lower;smaller

B）lower;larger

C）higher;smaller

D）higher;larger

Answer:

D

AACSB:

ReflectiveThinking

12）Everythingelseheldconstant,adeclineininterestrateswillcausespendingonhousingto

A）fall.

B）remainunchanged.

C）eitherrise,fall,orremainthesame.

D）rise.Answer:

DAACSB:

AnalyticalThinking

13）Highinterestratesmightpurchasingahouseorcarbutatthesametimehigh

interestratesmightsaving.

A）discourage;encourage

B）discourage;discourage

C）encourage;encourage

D）encourage;discourage

Answer:

A

AACSB:

AnalyticalThinking

14）Anincreaseininterestratesmightsavingbecausemorecanbeearnedininterest

income.

A）encourage

B）discourage

C）disallow

D）invalidate

Answer:

A

AACSB:

AnalyticalThinking

15）Everythingelseheldconstant,anincreaseininterestratesonstudentloans

A）increasesthecostofacollegeeducation.

B）reducesthecostofacollegeeducation.

C）hasnoeffectoneducationalcosts.

D）increasescostsforstudentswithnoloans.Answer:

A

AACSB:

AnalyticalThinking

16）Highinterestratesmightcauseacorporationtobuildinganewplantthatwould

providemorejobs.

A）complete

B）consider

C）postpone

D）contemplateAnswer:

CAACSB:

AnalyticalThinking

17）Thestockmarketis

A）whereinterestratesaredetermined.

B）themostwidelyfollowedfinancialmarketintheUnitedStates.

C）whereforeignexchangeratesaredetermined.

D）themarketwheremostborrowersgettheirfunds.Answer:

B

AACSB:

ReflectiveThinking

18）Stockpricesare

A）relativelystabletrendingupwardatasteadypace.

B）relativelystabletrendingdownwardatamoderaterate.

C）extremelyvolatile.

D）unstabletrendingdownwardatamoderaterate.Answer:

C

AACSB:

ReflectiveThinking

19）Arisingstockmarketindexduetohighershareprices

A）increasespeople'swealth,butisunlikelytoincreasetheirwillingnesstospend.

B）increasespeople'swealthandasaresultmayincreasetheirwillingnesstospend.

C）decreasestheamountoffundsthatbusinessfirmscanraisebysellingnewly-issuedstock.

D）decreasespeople'swealth,butisunlikelytoincreasetheirwillingnesstospend.Answer:

B

AACSB:

AnalyticalThinking

20）Whenstockpricesfall

A）anindividual'swealthisnotaffectednoristheirwillingnesstospend.

B）abusinessfirmwillbemorelikelytosellstocktofinanceinvestmentspending.

C）anindividual'swealthmaydecreasebuttheirwillingnesstospendisnotaffected.

D）anindividual'swealthmaydecreaseandtheirwillingnesstospendmaydecrease.Answer:

D

AACSB:

AnalyticalThinking

21）Changesinstockprices

A）donotaffectpeople'swealthandtheirwillingnesstospend.

B）affectfirms'decisionstosellstocktofinanceinvestmentspending.

C）occurinregularpatterns.

D）areunimportanttodecisionmakers.

Answer:

B

AACSB:

ReflectiveThinking

22）Anincreaseinstockpricesthesizeofpeople'swealthandmaytheir

willingnesstospend,everythingelseheldconstant.

A）increases;increase

B）increases;decrease

C）decreases;increase

D）decreases;decrease

Answer:

A

AACSB:

AnalyticalThinking

23）Lowstockmarketpricesmightconsumers'willingnesstospendandmight

businesseswillingnesstoundertakeinvestmentprojects.

A）increase;increase

B）increase;decrease

C）decrease;decrease

D）decrease;increase

Answer:

C

AACSB:

AnalyticalThinking

24）Fearofamajorrecessioncausesstockpricestofall,everythingelseheldconstant,whichinturncausesconsumerspendingto

A）increase.

B）remainunchanged.

C）decrease.

D）cannotbedetermined.

Answer:

C

AACSB:

ReflectiveThinking

25）Ashareofcommonstockisaclaimonacorporation's

A）debt.

B）liabilities.

C）expenses.

D）earningsandassets.

Answer:

D

AACSB:

ApplicationofKnowledge

26）On,October19,1987,thestockmarketexperienceditsworstone-daydropinits

entirehistorywiththeDJIAfallingby22%.

A）"TerribleTuesday"

B）"WoefulWednesday"

C）"FreakyFriday"

D）"BlackMonday"

Answer:

D

AACSB:

ApplicationofKnowledge

27）Thedeclineinstockpricesfrom2000through2002

A）increasedindividuals'willingnesstospend.

B）hadnoeffectonindividualspending.

C）reducedindividuals'willingnesstospend.

D）increasedindividualwealth.

Answer:

C

AACSB:

AnalyticalThinking

28）TheDowreachedapeakofover11,000beforethecollapseofthebubblein2000.

A）housing

B）manufacturing

C）high-tech

D）banking

Answer:

C

AACSB:

ApplicationofKnowledge

29）WhenIpurchaseacorporate,Iamlendingthecorporationfundsforaspecific

time.WhenIpurchaseacorporation's,Ibecomeanownerinthecorporation.

A）bond;stock

B）stock;bond

C）stock;debtsecurity

D）bond;debtsecurity

Answer:

A

AACSB:

ApplicationofKnowledge

30）Whatisastock?

Howdostocksaffecttheeconomy?

Answer:

Astockrepresentsashareofownershipofacorporation,oraclaimonafirm'searnings/assets.Stocksarepartofwealth,andchangesintheirvalueaffectpeople'swillingnesstospend.Changesinstockpricesaffectafirm'sabilitytoraisefunds,andthustheirinvestment.AACSB:

ApplicationofKnowledge

31）Whyisitimportanttounderstandthebondmarket?

Answer:

Thebondmarketsupportseconomicactivitybyenablingthegovernmentandcorporationstoborrowtoundertaketheirprojectsanditisthemarketwhereinterestratesaredetermined.

AACSB:

ApplicationofKnowledge

1.2WhyStudyFinancialInstitutionsandBanking?

1）Channelingfundsfromindividualswithsurplusfundstothosedesiringfundswhenthesaverdoesnotpurchasetheborrower'ssecurityisknownas

A）barter.

B）redistribution.

C）financialintermediation.

D）taxation.

Answer:

C

AACSB:

ApplicationofKnowledge

2）Afinancialcrisisis

A）notpossibleinthemodernfinancialenvironment.

B）amajordisruptioninthefinancialmarkets.

C）afeatureofdevelopingeconomiesonly.

D）typicallyfollowedbyaneconomicboom.

Answer:

B

AACSB:

ApplicationofKnowledge

3）Banksareimportanttothestudyofmoneyandtheeconomybecausethey

A）channelfundsfrominvestorstosavers.

B）havebeenasourceofrapidfinancialinnovation.

C）aretheonlyimportantfinancialinstitutionintheU.S.economy.

D）createinflation.

Answer:

B

AACSB:

ReflectiveThinking

4）Banks

A）provideachannelforlinkingthosewhowanttosavewiththosewhowanttoinvest.

B）producenothingofvalueandarethereforeadrainonsociety'sresources.

C）aretheonlyfinancialinstitutionsallowedtogiveloans.

D）holdverylittleoftheaverageAmerican'swealth.

Answer:

A

AACSB:

ReflectiveThinking

5）Banks,savingsandloanassociations,mutualsavingsbanks,andcreditunions

A）arenolongerimportantplayersinfinancialintermediation.

B）sincederegulationnowprovideservicesonlytosmalldepositors.

C）havebeenadeptatinnovatinginresponsetochangesintheregulatoryenvironment.

D）producenothingofvalueandarethereforeadrainonsociety'sresources.Answer:

C

AACSB:

ReflectiveThinking

6）Financialinstitutionssearchforhasresultedinmanyfinancialinnovations.

A）higherprofits

B）regulations

C）respect

D）higherrisk

Answer:

A

AACSB:

ApplicationofKnowledge

7）Banksandotherfinancialinstitutionseng