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    tai chinh tien te central bank

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    tai chinh tien te central bank

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    2 views9 pages

    tai chinh tien te central bank

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    ceilina301

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    © All Rights Reserved
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    of 9

    lOMoARcPSD|18723876

    TEST BANK The Economic of Money, Banking and Financial


    Markets
    Lý thuyết tài chính tiền tệ (Trường Đại học Kinh tế - Tài chính Thành phố Hồ Chí Minh)

    Studocu is not sponsored or endorsed by any college or university


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    lOMoARcPSD|18723876

    TEST OVERVIEW OF FINANCIAL MARKET


    1. Well-functioning financial markets
    A. cause inflation.
    B. eliminate the need for indirect finance.
    C. cause financial crises.
    D. produce an efficient allocation of capital.
    2. Which item below is not one of the five parts of the Financial System?
    A. Money
    B. Central banks
    C. Financial Markets
    D. Credit cards
    3. Every financial market has the following characteristic:
    A. It determines the level of interest rates.
    B. It allows common stock to be traded.
    C. It allows loans to be made.
    D. It channels funds from lenders-savers to borrowers-spenders.
    4. The New York Stock Exchange is an example of:
    A. a financial instrument.
    B. a central bank.
    C. a financial market.
    D. All of the above.
    5. A bank is an example of:
    A. a financial instrument.
    B. a financial market.
    C. a financial institution
    D. None of the above is correct.
    6. Financial instruments are:
    A. used to transfer resources from savers to investors.
    B. used to transfer risk.
    C. sold in financial markets.
    D. All of the above are correct

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    7. The principal lender-savers are


    A. governments.
    B. businesses.
    C. households.
    D. foreigners.
    8. Which of the following can be described as involving direct finance?
    A. A corporation takes out loans from a bank.
    B. People buy shares in a mutual fund.
    C. A corporation buys a short-term corporate security in a secondary market.
    D. People buy shares of common stock in the primary markets.
    9. Which of the following can be described as involving indirect finance?
    A. You make a loan to your neighbor.
    B. A corporation buys a share of common stock issued by another corporation in the primary
    market.
    C. You buy a U.S. Treasury bill from the U.S. Treasury.
    D. You make a deposit at a bank.
    10. Which of the following is not a secondary market?
    A. foreign exchange market
    B. futures market
    C. options market
    D. IPO market
    11. Secondary markets make financial instruments more
    A. solid.
    B. vapid.
    C. liquid.
    D. risky.
    12. A breakdown of financial markets can result in
    A. financial stability.
    B. rapid economic growth.
    C. political instability.
    D. stable prices.

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    13. Securities are ________ for the person who buys them, but are ________ for the individual
    or firm that issues them.
    A. assets; liabilities
    B. liabilities; assets
    C. negotiable; nonnegotiable
    D. nonnegotiable; negotiable
    14. Economies of scale enable financial institutions to
    A. reduce transactions costs.
    B. avoid the asymmetric information problem.
    C. avoid adverse selection problems.
    D. reduce moral hazard

    TEST CENTRAL BANK

    1. Which of the following is NOT likely to be a goal of a central bank?


    A. encouraging the use of paper currency instead of checking deposits
    B. maintaining a low inflation rate
    C. encouraging economic growth
    D. maintaining a stable financial system
    2. Monetary policy is best described as:
    A. attempts to keep inflation constant.
    B. determining the denominations and supply of a country's currency.
    C. one of the most important functions of Congress.
    D. attempts to keep inflation low and stable and growth high and stable
    3. The most common definition that monetary policymakers use for price stability is
    A. low and stable deflation.
    B. an inflation rate of zero percent.
    C. high and stable inflation.
    D. low and stable inflation.

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    4. A nominal variable, such as the inflation rate or the money supply, which ties down the
    price level to achieve price stability is called ________ anchor.
    A. a nominal
    B. a real
    C. an operating
    D. an intermediate
    5. A central feature of monetary policy strategies in all countries is the use of a nominal
    variable that monetary policymakers use as an intermediate target to achieve an ultimate
    goal such as price stability. Such a variable is called a nominal
    A. anchor.
    B. benchmark.
    C. tether.
    D. guideline.
    6. High unemployment is undesirable because it
    A. results in a loss of output.
    B. always increases inflation.
    C. always increases interest rates.
    D. reduces idle resources.
    7. When workers voluntarily leave work while they look for better jobs, the resulting
    unemployment is called
    A. structural unemployment.
    B. frictional unemployment.
    C. cyclical unemployment.
    D. underemployment.
    8. Unemployment resulting from a mismatch of workersʹ skills and job requirements is
    called
    A. frictional unemployment.
    B. structural unemployment.
    C. seasonal unemployment.
    D. cyclical unemployment.

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    9. The goal for high employment should be a level of unemployment at which the demand
    for
    labor equals the supply of labor. Economists call this level of unemployment the
    A. frictional level of unemployment.
    B. structural level of unemployment.
    C. natural rate level of unemployment.
    D. Keynesian rate level of unemployment.
    10. Having interest rate stability
    A. allows for less uncertainty about future planning.
    B. leads to demands to curtail the Fedʹs power.
    C. guarantees full employment.
    D. leads to problems in financial markets.

    TESK THE BAHAVIOR OF INTEREST RATE

    1. The concept of ________ is based on the common-sense notion that a dollar paid to you
    in the future is less valuable to you than a dollar today.
    A. present value
    B. future value
    C. interest
    D. deflation
    2. The present value of an expected future payment ________ as the interest rate increases.
    A. falls
    B. rises
    C. is constant
    D. is unaffected
    3. With an interest rate of 6 percent, the present value of $100 next year is approximately
    A. $106
    B. $100
    C. $94
    D. $92

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    4. To claim that a lottery winner who is to receive $1 million per year for twenty years has
    won $20 million ignores the process of
    A. face value.
    B. par value.
    C. deflation.
    D. discounting the future
    5. A credit market instrument that provides the borrower with an amount of funds that must
    be repaid at the maturity date along with an interest payment is known as a
    A. simple loan.
    B. fixed-payment loan.
    C. coupon bond.
    D. discount bond.
    6. A credit market instrument that requires the borrower to make the same payment every
    period until the maturity date is known as a
    A. simple loan.
    B. fixed-payment loan.
    C. coupon bond.
    D. discount bond.
    7. A fully amortized loan is another name for
    A. a simple loan.
    B. a fixed-payment loan.
    C. a commercial loan.
    D. an unsecured loan.
    8. A ________ pays the owner a fixed coupon payment every year until the maturity date,
    when the ________ value is repaid.
    A. coupon bond; discount
    B. discount bond; discount
    C. coupon bond; face
    D. discount bond; face

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    9. The ________ is the final amount that will be paid to the holder of a coupon bond.
    A. discount value
    B. coupon value
    C. face value
    D. present value
    10. A ________ is bought at a price below its face value, and the ________ value is repaid at
    the maturity date.
    A. coupon bond; discount
    B. discount bond; discount
    C. coupon bond; face
    D. discount bond; face
    11. Examples of discount bonds include
    A. Treasury bills.
    B. corporate bonds.
    C. Treasury notes.
    D. municipal bonds.
    12. If the amount payable in two years is $2420 for a simple loan at 10 percent interest, the
    loan amount is
    A. $1000.
    B. $1210.
    C. $2000.
    D. $2200
    13. The price of a coupon bond and the yield to maturity are ________ related; that is, as the
    yield to maturity ________, the price of the bond ________.
    A. positively; rises; rises
    B. negatively; falls; falls
    C. positively; rises; falls
    D. negatively; rises; falls

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    14. Which of the following $5,000 face-value securities has the highest to maturity?
    A. A 6 percent coupon bond selling for $5,000
    B. A 6 percent coupon bond selling for $5,500
    C. A 10 percent coupon bond selling for $5,000
    D. A 12 percent coupon bond selling for $4,500
    15. If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent,
    the real rate of interest is
    A. 2 percent.
    B. 8 percent.
    C. 10 percent.
    D. 12 percent

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