經(jīng)濟(jì)學(xué)原理對(duì)應(yīng)練習(xí)解析

1、Chapter 26Saving, Investment, and the Financial SystemMultiple Choice1. When opening a restaurant you may need to buy ovens, freezers, tables, and cash registers. Economists call these expenditures a. capital investment.investment in human capital.business consumption expenditures.None of the above

2、is correct. ANS: APTS: 1DIF: 1REF: 26-1TOP: Investment MSC: InterpretiveWhen a country saves a larger portion of its GDP, it will havemore capital and higher productivity.more capital and lower productivity.less capital and higher productivity.less capital and lower productivity. ANS: APTS: 1DIF: 1R

3、EF: 26-1TOP: Investment MSC: DefinitionalInstitutions in the economy that help to match one persons saving with another persons investment are collectively called theFederal Reserve system.banking system.monetary system.financial system. ANS: DPTS: 1DIF: 1REF: 26-1TOP: Financial systemMSC: Definitio

4、nalLekeishas income exceeds her expenditures. Lekeisha is asaver who demands money from the financial system.saver who supplies money to the financial system.borrower who demands money from the financial system.borrower who supplies money to the financial system. ANS: BPTS: 1DIF: 2REF: 26-1TOP: Supp

5、ly of loanable funds MSC: DefinitionalWhich of the following is not correct?When a country saves more, it has more capital.A supplier of loanable funds borrows money.The interest rate adjusts to balance the quantity supplied of and the quantity demanded of loanable funds.If Mary buys equipment for h

6、er factory, Mary is engaging in capital investment. ANS: BPTS: 1DIF: 1REF: 26-1TOP: Investment | Capital | Market for loanable funds M SC: DefinitionalLucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a a. saver who demands money from the

7、financial system.saver who supplies money to the financial system.borrower who demands money from the financial system.borrower who supplies money to the financial system. ANS: CPTS: 1DIF: 1REF: 26-1TOP: Supply of loanable funds MSC: DefinitionalA bond is afinancial intermediary.certificate of indeb

8、tedness.certificate of partial ownership in an enterprise.None of the above is correct.ANS: BPTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: DefinitionalWhich of the following would be an example of direct finance?A saver buys shares in a mutual fund.A saver deposits money into a credit union.A saver buys a bo

9、nd a corporation has just issued so it can purchase capital.None of the above is correct.ANS: CPTS: 1DIF: 1REF: 26-1TOP: Bonds | Direct finance MSC: InterpretiveA certificate of indebtedness that specifies the obligations of the borrower to the holder is called a a. bond.stock.mutual fund.All of the

10、 above are correct.ANS: APTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: DefinitionalIfthe governments expenditures exceeded its receipts, it would likelylend money to a bank or other financial intermediary.borrow money from a bank or other financial intermediary.buy bonds directly from the public.sell bonds d

11、irectly to the public.ANS: DPTS: 1DIF: 2REF: 26-1TOP: Bonds | Direct finance MSC: InterpretiveMegasoft wants to finance the purchase of new equipment for developing security software called Doors, but they have limited internal funds. Megasoft will likely a. demand loanable funds by buying bonds.dem

12、and loanable funds by selling bonds.supply loanable funds by buying bonds.supply loanable funds by selling bonds.ANS: BPTS: 1DIF: 2REF: 26-1TOP: Investment | Market for loanable fundsMSC: InterpretiveSkyline Chili wants to finance the purchase of new equipment for its restaurants, but they have limi

13、ted internal funds. Skyline will likelydemand loanable funds by buying bonds.demand loanable funds by selling bonds.supply loanable funds by buying bonds.supply loanable funds by selling bonds.ANS: BPTS: 1DIF: 2REF: 26-1TOP: Investment | Market for loanable fundsMSC: InterpretiveIf Proctor and Gambl

14、e sells a bond it isborrowing directly from the public.borrowing indirectly from the public.lending directly to the public.lending indirectly to the public.ANS: APTS: 1DIF: 2REF: 26-1TOP: Bonds | Direct finance MSC: InterpretiveWhich of the following is correct?The maturity of a bond refers to the a

15、mount to be paid back.The principal of the bond refers to the person selling the bond.A bond buyer cannot sell a bond before it matures.None of the above is correct.ANS: DPTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: DefinitionalWhich of the following is not a nonsensical headline?British perpetuities about

16、to mature.Disney issues new bonds with term of $1,000 each.Government bonds currently pay less interest than corporate bonds.Standard and Poors judges new junk bond to have very low credit risk.ANS: CPTS: 1DIF: 2REF: 26-1TOP: Bonds MSC: InterpretiveThe length of time until a bond matures is called t

17、ermediation.ANS: BPTS: 1DIF: 1REF: 26-1TOP: Bonds | TermMSC: DefinitionalA perpetuity is distinguished from other bonds in that itpays continuously compounded interest.pays interest only when it matures.never matures.will be used to purchase another bond when it matures

18、 unless the owner specifies otherwise.ANS: CPTS: 1DIF: 1REF: 26-1TOP: Perpetuity MSC: DefinitionalWhich of the following is correct?Some bonds have terms as short as a few months.Because they are so risky, junk bonds pay a low rate of interest.Corporations buy bonds to raise funds.All of the above a

19、re correct.ANS: APTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: InterpretiveWhich of the following is not correct?If you buy a bond from a corporation, you can sell the bond to someone else before it matures.Date to maturity refers to the scheduling of periodic interest rate payments on a bond.A bond is an IO

20、U.There are millions of different bonds in the U.S. economy.ANS: BPTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: DefinitionalA bond that never matures is known as aperpetuity.an intermediary bond.an indexed bond.a junk bond.ANS: APTS: 1DIF: 1REF: 26-1TOP: Perpetuity MSC: DefinitionalWhich of the following is

21、correct?Lenders sell bonds and borrowers buy them.Long-term bonds usually pay a lower interest rate than do short-term bonds because long-term bonds are riskier.Junk bonds refer to bonds that have been resold many times.None of the above is correct.ANS: DPTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: Definiti

22、onalLong-term bonds are generallyless risky than short-term bonds and so pay higher interest.less risky than short-term bonds and so pay lower interest.more risky than short-term bonds and so pay higher interest.more risky than short-term bonds and so pay lower interest.ANS: CPTS: 1DIF: 1REF: 26-1TO

23、P: Bonds and riskMSC: DefinitionalCompared to long-term bonds, other things the same, short-term bonds generally havemore risk and so pay higher interest.less risk and so pay lower interest.less risk and so pay higher interest.about the same risk and so pay about the same interest.ANS: BPTS: 1DIF: 1

24、REF: 26-1TOP: Bonds and riskMSC: DefinitionalOn which bond is default most likely?ajunk bonda municipal bonda U.S. government bonda corporate bond issued by Proctor and Gamble.ANS: APTS: 1DIF: 1REF: 26-1TOP: Bonds and riskMSC: DefinitionalAssuming that the bonds below have the same term and principa

25、l and that the state or local government which issues the municipal bond has a good credit rating, which list has bonds ordered from the one that pays the most interest to the one that pays the least interest?corporate bond, municipal bond, U.S. government bondcorporate bond, U.S. government bond, m

26、unicipal bondmunicipal bond, U.S. government bond, corporate bondU.S. government bond, municipal bond, corporate bondANS: BPTS: 1DIF: 2REF: 26-1TOP: Bonds and riskMSC: InterpretiveOther things the same, as the maturity of a bond becomes longer, the bond will payless interest because it has less risk

27、.less interest because it has more risk.more interest because it has more riskThere is no relation between term to maturity and risk.ANS: CPTS: 1DIF: 2REF: 26-1TOP: Bonds and riskMSC: InterpretiveSuppose the city of Cincinnati has a high credit rating.The high credit rating and the tax status of mun

28、icipal bonds should both make the interest rate lower than otherwise.The high credit rating and the tax status of municipal bonds should both make the interest rate higher than otherwise.The high credit rating should make the interest rate higher than otherwise. The tax status of municipal bonds sho

29、uld make the interest rate lower than otherwise.The high credit rating should make the interest rate lower than otherwise. The tax status of municipal bonds should make the interest rate higherthan otherwise.ANS: APTS: 1DIF: 2REF: 26-1TOP: Interest on bondsMSC: ApplicativeMunicipal bonds pay a relat

30、ivelylow rate of interest because of their high-default risk and because the interest they pay is subject to federal income tax.low rate of interest because of their low-default risk and because the interest they pay is not subject to federal income tax.high rate of interest because of their high-de

31、fault risk and because federal taxes must be paid on the interest they pay.high rate of interest because of their low-default risk and because the interest they pay is not subject to federal income tax.ANS: BPTS: 1DIF: 2REF: 26-1TOP: Interest on bondsMSC: DefinitionalWhich of the following bond buye

32、rs did not buy the bond that best met their objective?Mia wanted a bond with a high interest rate and was willing to take a lot of risk. She purchased a junk bond.Anna wanted a bond that would let her best avoid federal income taxes. She purchased a municipal bond.Bill wanted to purchase a bond that

33、 was unlikely to have default. He purchased a bond that Standards and Poors rated a low credit risk.Toby held long-term bonds rather than short-term ones to avoid risk. ANS: DPTS: 1DIF: 1REF: 26-1TOP: Bonds MSC: ApplicativeInterest on bonds issued by state and local governments with good credit rati

34、ngsis not subject to federal income tax and so these bonds have a higher interest rate than otherwise comparable bonds issued by the U.S. government.is not subject to federal income tax and so these bonds have a lower interest rate than otherwise comparable bonds issued by the U.S. government.is sub

35、ject to federal income tax and so these bonds have a higher interest rate than otherwise comparable bond issued by the U.S. government.is subject to federal income tax and so these bonds have a lower interest rate than otherwise comparable bond issued by the U.S. government.ANS: BPTS: 1DIF: 2REF:26-

36、1TOP: Interest on bondsMSC: DefinitionalOther things the same, bonds are likely to have higher interest rates if they havetax exemptions and short terms.tax exemptions and long terms.no tax exemptions and short terms.no tax exemptions and long terms. ANS: DPTS: 1DIF: 1REF: 26-1TOP: Interest on bonds

37、MSC: DefinitionalOther things the same, which bond would you expect to pay the highest interest rate?a bond issued by the U.S. governmenta bond issued by IBMa bond issued by New York Statea bond issued by a new restaurant chain ANS: DPTS: 1DIF: 1REF: 26-1TOP: Interest on bondsMSC: ApplicativeOther t

38、hings the same, which bond would you expect to pay the lowest interest rate?a bond issued by a state with a very good credit ratinga bond issued by the U.S. governmenta bond issued by a fairly new company doing genetic researcha bond issued by Nabisco ANS: APTS: 1DIF: 2REF: 26-1TOP: Interest on bond

39、sMSC: ApplicativeYou are thinking of buying a bond from Knight Corporation. You know that this bond is long term and you know that Knight s business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an establi

40、shed reputation. Which of the following is correct?The longer term would tend to make the interest rate on the bond issued by Knight higher, while the higher risk would tend to make the interest rate lower.The longer term would tend to make the interest rate on the bond issued by Knight lower, while

41、 the higher risk would tend to make the interest rate higher.Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by Knight.Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.ANS: DPTS: 1

42、DIF: 2REF: 26-1TOP: Interest on bondsMSC: ApplicativeJerry has the choice of two bonds, one that pays 3 percent interest and one that pays 6 percent interest. Which of the following is most likely?The 6percentbondis less risky than the 3 percent bond.The 6percentbondis a U.S. government bond, and th

43、e 3 percentbondisa junk bond.The 6percentbondhas a longer term than the 3 percent bond.The 6percentbondis a municipal bond, and the 3 percent bondisa U.S.governmentbond.ANS: CPTS: 1DIF: 2REF: 26-1TOP: Interest on bondsMSC: ApplicativeLacey, a financial advisor has told her clients the following thin

44、gs. Which of her statements is not correct?U.S. government bonds generally have a higher rate of interest than municipal bonds.The interest received on corporate bonds is taxable.U.S. government bonds have the lowest default risk.If you purchase a bond, you must hold it until it matures.ANS: DPTS: 1

45、DIF: 2REF: 26-1TOP: Bonds MSC: ApplicativeThe sale of stocksand bonds to raise money is called debt finance.and bonds to raise money is called equity finance.to raise money is called debt finance, while the sale of bonds to raise funds is called equity finance.to raise money is called equity finance

46、, while the sale of bonds to raise funds is called debt finance.ANS: DPTS: 1DIF: 1REF: 26-1TOP: Debt financing | Equity financingMSC: DefinitionalFred sells newly issued bonds. Ethel sells newly issued stocks. Who uses direct finance?Only Fred.Only Ethel.Both Fred and Ethel.Neither Fred nor Ethel.AN

47、S: CPTS: 1DIF: 1REF: 26-1TOP: Direct finance | Indirect financeMSC: DefinitionalPapa Marios Pizza Company sells common stock.Theyareusing equity financing and the return shareholders earn is fixed.Theyareusing equity financing and the return shareholders earn dependson howprofitable the companyis.Th

48、eyareusing debt financing and the return shareholders earn is fixed.Theyareusing debt financing and the return shareholders earn depends onhow profitable the companyis.ANS: BPTS: 1DIF: 1REF: 26-1TOP: Stocks MSC: DefinitionalStock representsa claim to a share of the profits of a firm.ownership in a f

49、irm.equity finance.All of the above are correctANS: DPTS: 1DIF: 1REF: 26-1TOP: Stocks MSC: DefinitionalPeople who buy newly issued stock in a corporation such as Crate and Barrel providedebt finance and so become part owners of Crate and Barrel.debt finance and so become creditors of Crate and Barre

50、l.equity finance and so become part owners of Crate and Barrel.equity finance and so become creditors of Crate and Barrel.ANS: CPTS: 1DIF: 1REF: 26-1TOP: Stocks MSC: DefinitionalPeople who buy stock in a corporation such as General Electric becomecreditors of General Electric, so the benefits of hol

51、ding the stock depend on General Electrics profits.creditors of General Electric, but the benefits of holding the stock do not depend on General Electrics profits.part owners of General Electric, so the benefits of holding the stock depend on General Electrics profits.part owners of General Electric

52、, but the benefits of holding the stock do not depend on General Electrics profits.ANS: CPTS: 1DIF: 1REF: 26-1TOP: Stocks MSC: DefinitionalIf Huedepool Beer runs into financial difficulty, the stockholders aspart owners of Huedepool are paid before bondholders get paid anything at all.part owners of

53、 Huedepool are paid after bondholders get paid.creditors of Huedepool are paid before bondholders get paid anything at all.creditors of Huedepool are paid after bondholders get paid.ANS: BPTS: 1DIF: 1REF: 26-1TOP: Stocks MSC: DefinitionalAs chief financial officer you sell newly issued bonds on beha

54、lf of your firm. Your firm isborrowing directly.borrowing indirectly.lending directly.lending indirectly.ANS: APTS: 1DIF: 1REF: 26-1TOP: Direct financeMSC: DefinitionalWhich of the following people purchased the correct asset to meet their objective?Michelle wanted to be a part owner of Mamma Rosas

55、Pizza, so she purchased a bond issued by Mamma Rosas Pizza.Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric.Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda.All of t

56、he above are correct.ANS: BPTS: 1DIF: 1REF: 26-1TOP: Stocks versus bondsMSC: InterpretiveThe prices of stock traded on exchanges are determined bythe Corporate Stock Administration.the administrators of NASDAQ.the supply and demand for the stock.All of the above are correct.ANS: CPTS: 1DIF: 1REF: 26

57、-1TOP: Stock pricesMSC: DefinitionalWhich of the following is not an important stock exchange in the United States?New York Stock ExchangeAmerican Stock ExchangeChicago Mercantile ExchangeNASDAQANS: CPTS: 1DIF: 1REF: 26-1TOP: Stock exchangesMSC: DefinitionalAll else equal, when people become more op

58、timistic about a companys future, thesupply of the stock and the price will both rise.supply of the stock and the price will both fall.demand for the stock and the price will both rise.demand for the stock and the price will both fall.ANS: CPTS: 1DIF: 2REF: 26-1TOP: Stock pricesMSC: AnalyticalSuppos

59、e that the government finds a major defect in one of a companys products and demands that it take it off the market. We would expect that thesupply of existing shares of the stock and the price will both rise.supply of existing shares of the stock and the price will both fall.demand for existing sha

60、res of the stock and the price will both rise.demand for existing shares of the stock and the price will both fall.ANS: DPTS: 1DIF: 2REF: 26-1TOP: Stock pricesMSC: AnalyticalWorld Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs. We would expect that t