1、MACRO CHAPTER 9 TESTQUESTIONS宏观经济学答案MACRO CHAPTER 9 TEST QUESTIONSMoney, Prices, and the Financial System Multiple Choice Questions1.In the United States saving is allocated to its most productive use by:A.the Federal Reserve.B.the Federal, state, and local governments.C.regulations and laws designe
2、d to improve productivity.D.a decentralized, market-oriented financial system.2.Decentralized market-based financial systems improve the allocation of saving by:A.insuring capital gains exceed dividend payments.B.eliminating the need for commercial banks or other financial intermediaries.C.matching
3、net capital inflows to net capital outflows.D.providing information and risk-sharing services.3.The financial system consists of financial _, such as commercial banks, and financial _, such as the stock market.A.markets; intermediariesB.allocations; investmentsC.intermediaries; marketsD.markets; ins
4、titutions4.Firms that extend credit to borrowers using funds from savers are called:A.bond dealers.B.stock brokers.C.central banks.D.financial intermediaries.5.The specialized information-gathering activities that banks use to evaluate borrowers are an example of the:A.cost-benefit principle.B.princ
5、iple of comparative advantage.C.scarcity principle.D.principle of increasing opportunity cost.6.Privately-owned firms that accept deposits from individuals and businesses and use those deposits to make loans are called:A.mortgage banks.B.brokerage firms.C.commercial banks.D.investment banks.7.Banks
6、help savers find productive uses for their funds because banks have specialized in:A.gathering information about and evaluating potential borrowers.B.obtaining preferential tax treatment for savers.C.securing government guarantees for loans.D.evaluating the riskiness of stocks.8.Financial intermedia
7、ries, such as commercial banks, help borrowers, particularly small borrowers, by:A.providing information to evaluate potential lenders.B.offering tax-preferred borrowing opportunities.C.eliminating the risk of borrowing.D.providing credit that might otherwise not be available.9.Savers may prefer to
8、use financial intermediaries rather than lending directly to borrowers because financial intermediaries:A.reduce the cost of gathering information about borrowers.B.have a monopoly on lending.C.increase the risk of lending.D.offer higher rates of return than available elsewhere.10.Two reasons savers
9、 keep deposits at banks are to:A.secure mortgages and to purchase stocks.B.earn a return on their savings and to facilitate making payments.C.lower interest rates and to increase the money supply.D.equalize loan supply and demand and to earn interest.11.A bond is a(n):A.regular payment made to owner
10、s of a firm.B.claim to partial ownership of a firm.C.agreement issued by a financial intermediary linking savers and investors.D.legal promise to repay a debt.12.The principal amount of a bond is the amount:A.originally lent.B.of interest agreed upon when the bond was originally issued.C.paid to the
11、 bondholders on a regular basis.D.of interest the bondholder is entitled to when the bond matures.13.The maturation date of a bond is the date at which:A.coupon payments will be made.B.the principal will be repaid.C.dividend payments will be made.D.taxes on the bond are due.14.The coupon rate is the
12、:A.amount originally lent.B.regular payment of interest to a bondholder.C.interest rate promised when a bond is issued.D.maximum interest rate that can be paid on a bond.15.Regular interest payments made to bondholders are called _ payments.A.diversificationB.reserveC.couponD.dividend16.If the princ
13、ipal amount of a bond is $10,000,000, the coupon rate is 7%, and the inflation rate is 4%, then the annual coupon payment made to the holder of the bond is:A.$70,000.B.$300,000.C.$400,000.D.$700,000.17.The market value of a particular bond at any given point in time is called the bonds:A.coupon rate
14、.B.principal.C.term.D.price.18.The coupon rate on newly issued bonds is usually higher for bonds with _ terms and _ risk that the borrower will go bankrupt.A.shorter; greaterB.shorter; smallerC.longer; greaterD.longer; smaller19.The coupon rate on newly issued bonds is usually _ for bonds with favor
15、able tax treatment, such as municipal bonds, and _ for bonds that are very risky, such as junk bonds.A.higher; lowerB.higher; higherC.lower; lowerD.lower; higher20.Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first,
16、second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is _, the coupon rate is _, and the term of this bond is _.A.$400; 40%; four yearsB.$10,000; 4%; four yearsC.$10,000; $400; 4%D.$10,400; 4%; four years21.When the interest rate on n
17、ewly issued bonds increases, the price of existing bonds:A.increases.B.decreases.C.increases only if the coupon rate is below the new rate.D.may either increase or decrease.22.Pat pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year
18、 later, after receiving the first coupon payment, Pat sells the bond. If the current one-year interest rate on government bonds is 5 percent, then the price Pat receives is:A.$10,000.B.$500.C.greater than $10,000.D.less than $10,000.23.Chris pays $10,000 for a newly issued two-year government bond w
19、ith a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is:A.$10,000.B.$700.C.greater than $10,000.D.less than $10,000.2
20、4.Sydney purchases a newly-issued, two-year government bond with a principal amount of $10,000 and a coupon rate of 6% paid annually. One year before the bonds matures (and after receiving the coupon payment for the first year), Sydney sells the bond in the bond market. What price (rounded to the ne
21、arest dollar) will Sydney receive for his bond if newly-issued one-year government bonds are paying a 5% coupon rate?A.$9,906B.$10,000C.$10,095D.$10,60025.One year before maturity the price of a bond with a principal amount of $1,000 and a coupon rate of 5% paid annually fell to $981. The one year i
22、nterest rate must be:A.8.5%.B.7.0%.C.5.0%.D.1.9%.26.When the coupon rate on newly-issued bonds increases from 5% to 6%, the prices of existing bonds:A.increase.B.decrease.C.remain unchanged.D.increase only if the coupon rate is less than 6%.27.When the coupon rate on newly-issued bonds decreases fro
23、m 6% to 5%, the prices of existing bonds:A.increase.B.decrease.C.remain unchanged.D.decrease only if the coupon rate is less than 5%.28.Shares of stock are:A.legal promises to repay a debt.B.claims to partial ownership of a firm.C.regular payments made to owners of a firm.D.legal promises to make re
24、gular payments to the stockholder.29.Stockholders receive returns on their financial investment in the form of _ and _.A.interest payments; dividendsB.capital gains; dividendsC.coupon payments; capital gainsD.capital gains; interest payments30.A regular payment received by stockholders for each shar
25、e they own is called a:A.coupon payment.B.dividend.C.bond.D.capital gain.31.The rate of return that financial investors require to hold a risky asset minus the rate of return on a safe asset is called the:A.real interest rate.B.nominal interest rate.C.risk premium.D.discount rate.32.An increase in t
26、he perceived riskiness of the stock of Company A _ the risk premium investors require to purchase Company A stock and _ the price of Company A stock.A.increases; increasesB.increases; decreasesC.decreases; increasesD.decreases; decreases33.A decrease in the perceived riskiness of the stock of Compan
27、y A _ the risk premium investors require to purchase Company A stock and _ the price of Company A stock.A.increases; increasesB.increases; decreasesC.decreases; increasesD.decreases; decreases34.You originally required a risk premium of 6 percent in addition to the rate of return on safe assets befo
28、re you would purchase shares of Techno Company stock. If you and other investors reduce the risk premium you require to 4 percent, the price of Techno Company stock will:A.increase.B.decrease.C.equal the old risk premium plus the new risk premium.D.equal the new risk premium plus the rate of return
29、on safe assets.35.An increase in interest rates results in a(n) _ in the required rate of return to hold stocks and _ current stock prices.A.increase; reducesB.increase; raisesC.decrease; raisesD.decrease; reduces36.The current price of a stock increases when:A.expected future dividends decrease.B.t
30、he expected future price of the stock decreases.C.interest rates decrease.D.the perceived riskiness of the stock increases.37.You expect a share of EconNews.Com to sell for $65 a year from now and to pay a $2 dividend per share in one year. What should you pay (rounded to the nearest dollar) for the stock today if you require an 8% return?A.$60B.$62C.$67D.$7038.You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of t
