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    MockExam 2018

    Uploaded by

    kieuvo0512
    MIDTERM LTTC

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    © All Rights Reserved
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    MockExam 2018

    Uploaded by

    kieuvo0512
    13 views5 pages
    MIDTERM LTTC

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    MIDTERM LTTC

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views5 pages

    MockExam 2018

    Uploaded by

    kieuvo0512
    MIDTERM LTTC

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Code 2891

    TRƯỜNG ĐẠI HỌC NGOẠI THƯƠNG ĐỀ THI GIỮA KÌ


    CƠ SỞ II TẠI TP. HỒ CHÍ MINH
    BỘ MÔN NGHIỆP VỤ

    Môn thi: Lý thuyết Tài chính - Thời gian: phút


    Sinh viên không được sử dụng tài liệu
    Sinh viên nộp lại đề thi
    Mã đề:01

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    Code 2891

    PART 1. MULTIPLE CHOICE QUESTIONS (6 points)


    There are 20 questions in this part. Answer ALL questions. Give ONE answer only for
    each question.
    1. Loans made between borrowers and lenders are:
    a. liabilities to the lenders and assets to the borrowers since the borrower obtains the
    funds.
    b. assets to the lenders and liabilities of the borrowers since the promises are made
    to the lenders.
    c. not part of either parties' assets or liabilities until the loans are repaid.
    d. liabilities to both the lenders and the borrowers.
    e. None of the answers is correct.
    2. Which of the following statements is most correct?
    a. All banks are financial intermediaries, but not all financial intermediaries are
    banks.
    b. Financial intermediaries must be public corporations.
    c. All financial intermediaries are insurance companies.
    d. Financial intermediaries are government agencies.
    e. All answers are correct.
    3. Financial instruments and money share which of the following characteristics?
    a. Both can function as a means of payment and a store of value.
    b. Both can function as a store of value and allow for trading of risk.
    c. Both can function by acting as a means of payment and allow for trading of risk.
    d. Both can function as a store of value even though they do not allow for trading of
    risk.
    e. All answers are correct.
    4. Many financial instruments are standardized because:
    a. it is believed that most parties to a contract do not read them anyway.
    b. complexity is costly, the more complex a contract, the more it costs to create.
    c. the standardization of contracts makes them harder to understand.
    d. it is required by the government.
    e. All the answers are correct.
    5. Financial instruments used primarily as stores of value include each of the following,
    except:
    a. bonds. d. home mortgages.
    b. futures contracts. e. All the answers are correct.
    c. stocks.
    6. Financial intermediaries pool funds of:
    a. many small savers and provide it to a few large borrowers.
    b. few large savers and provide it to many small borrowers.
    c. few large savers a few large borrowers.
    d. many small savers and provide it to many borrowers.
    e. None of the answers is correct.
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    7. Which of the following are long-term financial instruments?


    a. A six-month loan e. None of the answers is
    b. A negotiable CD correct.
    c. A bankers acceptance
    d. A U.S. Treasury bill
    8. Which of the following instruments is not traded in a money market?
    a. Eurodollars d. Municipal bonds
    b. U.S. Treasury Bills e. None of the above
    c. Banker's acceptances
    9. Contractual savings institutions include
    a. mutual savings banks d. life insurance companies
    b. money market mutual funds
    c. commercial banks e. None of the above
    10. The primary assets of money market mutual funds are
    a. stocks d. deposits
    b. bonds e. none of the above
    c. money market instrument
    11. Financial markets improve economic welfare because
    a. they allow funds to move from those without productive investment
    opportunities to those who have such opportunities.
    b. they allow consumers to time their purchase better.
    c. they weed out inefficient firms.
    d. they do each of the above.
    e. they do (a) and (b) of the above.
    12. U.S. Treasury bills _________.
    a. are issued in three-, six-, nine-, and twelve-month maturities.
    b. are the most liquid of the money market securities.
    c. sell at a discount because they have no interest payments.
    d. are all of the above.
    e. are only (b) and (c) of the above.
    13. Moral hazard is an important feature of insurance arrangements because the existence of
    insurance
    a. provides increased incentives for risk taking.
    b. causes the private cost of the insured activity to increase.
    c. is a hindrance to efficient risk taking.
    d. both (a) and (b) of the above.
    e. both (b) and (c) of the above.
    14. One financial intermediary in our financial structure that helps to reduce the moral
    hazard from arising from the principal-agent problem is the
    a. venture capital firm.
    b. money market mutual fund.

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    Code 2891

    c. pawn broker.
    d. savings and loan association.
    15. An investment bank purchases securities from a corporation at a predetermined price and
    then resells them in the market. This process is called ______.
    a. underwriting. c. understanding.
    b. underhanded. d. undertaking.
    16. What is the effective annual rate of a mortgage rate that is advertised at 7.25% (APR)
    over the next twenty years and paid with quarterly payment?
    a. 7.4% c. 43.22%
    b. 7.44% d. 7.5%
    17. The presence of transaction costs in financial markets explains, in part, why
    a. corporations get more funds through equity financing than they get from financial
    intermediaries.
    b. financial intermediaries and indirect finance play such an important role in
    financial markets.
    c. equity and bond financing play such an important role in financial markets.
    d. direct financing is more important than indirect financing as a source of funds.
    18. A share of common stock represents a(n):
    a. claim from a lender against a borrower.
    b. share in the company's debts.
    c. share of ownership of the company.
    d. unlimited liability to the owner of the stock.
    19. Providing stock options to corporate managers was an idea designed to:
    a. hide increases in pay of corporate executives from stockholders.
    b. align managers' interest with the stockholders' interest.
    c. treat adverse selection.
    d. treat the free-rider problem.
    20. Adverse selection:
    a. increases the efficiency of most markets.
    b. usually causes prices to adjust faster than they otherwise would.
    c. makes it easier for all customers to find what they want.
    d. results in fewer market transactions.
    PART 2. EXERCISES AND SHORT QUESTIONS (4 points)
    1. Exercises (2 points)
    a. You must pay a creditor $8000 at the end of 1st year, $5000 at the end of 2nd year ,
    $4000 at the end of 3rd year, $2000 at the end of 4th year from now. You would like to
    restructure the loan into four equal annual payments due at the end of each year. If the
    agreed interest rate is 12% compounded annually, what is the payment?

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    b. When you purchased a house, you took out a $450,000, 20-year monthly-payment
    mortgage with an interest rate of 12% per year. You have now decided to pay the
    mortgage off by repaying the outstanding balance. Calculate the annual payment. What
    is the payoff amount if you decided to pay off the mortgage immediately after the 12th
    payment is made.

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