第二單元金融考試題西南財經(jīng)大學(xué)天府學(xué)院幼兒教育

1/1第二單元金融考試題西南財經(jīng)大學(xué)天府學(xué)院-幼兒教育

FinancialMarketsandInstitutions,7e(Mishkin)Chapter2OverviewoftheFinancialSystem

2.1MultipleChoice

1)Everyfinancialmarketperformsthefollowingfunction:A)Itdeterminesthelevelofinterestrates.B)Itallowscommonstocktobetraded.C)Itallowsloanstobemade.

D)Itchannelsfundsfromlenders-saverstoborrowers-spenders.Answer:D

2)Financialmarketshavethebasicfunctionof

A)bringingtogetherpeoplewithfundstolendandpeoplewhowanttoborrowfunds.B)assuringthattheswingsinthebusinesscyclearelesspronounced.C)assuringthatgovernmentsneedneverresorttoprintingmoney.D)bothAandBoftheabove.E)bothBandCoftheabove.Answer:A

3)Whichofthefollowingcanbedescribedasinvolvingdirectfinance?A)Acorporation'sstockistradedinanover-the-countermarket.B)Peoplebuysharesinamutualfund.

C)Apensionfundmanagerbuyscommercialpaperinthesecondarymarket.

D)Aninsurancecompanybuyssharesofcommonstockintheover-the-countermarkets.E)Noneoftheabove.Answer:E

4)Whichofthefollowingcanbedescribedasinvolvingdirectfinance?A)Acorporation'sstockistradedinanover-the-countermarket.

B)Acorporationbuyscommercialpaperissuedbyanothercorporation.

C)Apensionfundmanagerbuyscommercialpaperfromtheissuingcorporation.D)BothAandBoftheabove.E)BothBandCoftheabove.Answer:B

5)Whichofthefollowingcanbedescribedasinvolvingindirectfinance?A)Acorporationtakesoutloansfromabank.B)Peoplebuysharesinamutualfund.

C)Acorporationbuyscommercialpaperinasecondarymarket.D)Alloftheabove.

E)OnlyAandBoftheabove.Answer:E

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6)Whichofthefollowingcanbedescribedasinvolvingindirectfinance?A)AbankbuysaU.S.Treasurybillfromoneofitsdepositors.

B)Acorporationbuyscommercialpaperissuedbyanothercorporation.C)Apensionfundmanagerbuyscommercialpaperintheprimarymarket.D)BothAandCoftheabove.Answer:D

7)Financialmarketsimproveeconomicwelfarebecause

A)theyallowfundstomovefromthosewithoutproductiveinvestmentopportunitiestothosewhohavesuchopportunities.

B)theyallowconsumerstotimetheirpurchasesbetter.C)theyweedoutinefficientfirms.D)theydoalloftheabove.

E)theydoAandBoftheabove.Answer:E

8)AcountrywhosefinancialmarketsfunctionpoorlyislikelytoA)efficientlyallocateitscapitalresources.B)enjoyhighproductivity.

C)experienceeconomichardshipandfinancialcrises.D)increaseitsstandardofliving.Answer:C

9)Whichofthefollowingaresecurities?A)Acertificateofdeposit

B)AshareofTexacocommonstockC)ATreasurybillD)Alloftheabove

E)OnlyAandBoftheaboveAnswer:D

10)Whichofthefollowingstatementsaboutthecharacteristicsofdebtandequityaretrue?A)Theybothcanbelong-termfinancialinstruments.B)Theybothinvolveaclaimontheissuer'sincome.C)Theybothenableacorporationtoraisefunds.D)Alloftheabove.

E)OnlyAandBoftheabove.Answer:D

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11)Themoneymarketisthemarketinwhich________aretraded.A)newissuesofsecuritiesB)previouslyissuedsecuritiesC)short-termdebtinstruments

D)long-termdebtandequityinstrumentsAnswer:C

12)Long-termdebtandequityinstrumentsaretradedinthe________market.A)primaryB)secondaryC)capitalD)moneyAnswer:C

13)Whichofthefollowingareprimarymarkets?A)TheNewYorkStockExchangeB)TheU.S.governmentbondmarketC)Theover-the-counterstockmarketD)TheoptionsmarketsE)NoneoftheaboveAnswer:E

14)Whichofthefollowingaresecondarymarkets?A)TheNewYorkStockExchangeB)TheU.S.governmentbondmarketC)Theover-the-counterstockmarketD)TheoptionsmarketsE)AlloftheaboveAnswer:E

15)AcorporationacquiresnewfundsonlywhenitssecuritiesaresoldintheA)secondarymarketbyaninvestmentbank.B)primarymarketbyaninvestmentbank.

C)secondarymarketbyastockexchangebroker.D)secondarymarketbyacommercialbank.Answer:B

16)IntermediarieswhoareagentsofinvestorsandmatchbuyerswithsellersofsecuritiesarecalledA)investmentbankers.B)traders.C)brokers.D)dealers.

E)noneoftheabove.Answer:C

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17)IntermediarieswholinkbuyersandsellersbybuyingandsellingsecuritiesatstatedpricesarecalledA)investmentbankers.B)traders.C)brokers.D)dealers.

E)noneoftheabove.Answer:D

18)Animportantfinancialinstitutionthatassistsintheinitialsaleofsecuritiesintheprimarymarketisthe

A)investmentbank.B)commercialbank.C)stockexchange.D)brokeragehouse.Answer:A

19)Whichofthefollowingstatementsaboutfinancialmarketsandsecuritiesaretrue?

A)Mostcommonstocksaretradedover-the-counter,althoughthelargestcorporationshavetheirsharestradedatorganizedstockexchangessuchastheNewYorkStockExchange.

B)Acorporationacquiresnewfundsonlywhenitssecuritiesaresoldintheprimarymarket.

C)Moneymarketsecuritiesareusuallymorewidelytradedthanlonger-termsecuritiesandsotendtobemoreliquid.

D)Alloftheabovearetrue.

E)OnlyAandBoftheabovearetrue.Answer:D

20)Whichofthefollowingstatementsaboutfinancialmarketsandsecuritiesaretrue?

A)Abondisalong-termsecuritythatpromisestomakeperiodicpaymentscalleddividendstothefirm'sresidualclaimants.

B)Adebtinstrumentisintermediatetermifitsmaturityislessthanoneyear.C)Adebtinstrumentislongtermifitsmaturityistenyearsorlonger.

D)Thematurityofadebtinstrumentisthetime(term)thathaselapsedsinceitwasissued.Answer:C

21)Whichofthefollowingstatementsaboutfinancialmarketsandsecuritiesaretrue?

A)Fewcommonstocksaretradedover-the-counter,althoughtheover-the-countermarketshavegrowninrecentyears.

B)Acorporationacquiresnewfundsonlywhenitssecuritiesaresoldintheprimarymarket.

C)Capitalmarketsecuritiesareusuallymorewidelytradedthanlonger-termsecuritiesandsotendtobemoreliquid.

D)Alloftheabovearetrue.

E)OnlyAandBoftheabovearetrue.Answer:B

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22)Whichofthefollowingmarketsissometimesorganizedasanover-the-countermarket?A)ThestockmarketB)Thebondmarket

C)TheforeignexchangemarketD)ThefederalfundsmarketE)alloftheaboveAnswer:E

23)Bondsthataresoldinaforeigncountryandaredenominatedinthatcountry'scurrencyareknownasA)foreignbonds.B)Eurobonds.C)Eurocurrencies.D)Eurodollars.Answer:A

24)BondsthataresoldinaforeigncountryandaredenominatedinacurrencyotherthanthatofthecountryinwhichtheyaresoldareknownasA)foreignbonds.B)Eurobonds.C)Eurocurrencies.D)Eurodollars.Answer:B

25)Financialintermediaries

A)existbecausetherearesubstantialinformationandtransactioncostsintheeconomy.B)improvethelotofthesmallsaver.

C)areinvolvedintheprocessofindirectfinance.D)doalloftheabove.

E)doonlyAandBoftheabove.Answer:D

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