货币银行学092期末试卷（C卷）

江西财经大学

09－10学年第二学期期末考试试卷

试卷代码：12423C 授课课时：48课时

课程名称：货币银行学 适用对象：国际学院学生 试卷命题人 李静 试卷审核人 王耀德

Part I. This part has 20 Multiple Choice Questions and each one is worth 1 points. The total points for

this part are 20 points. Please choose only one answer for each question.

1 The Fed can exert more precise control over _____ than it can over _____.

(a) high-powered money; reserves

(b) high-powered money; the monetary base

(c) the monetary base; high-powered money

(d) reserves; high-powered money

2 A contract that requires the investor to sell securities on a future date is called a

a) short contract.

b) long contract.

c) hedge.

d) micro hedge.

3 The fact that depositors cannot distinguish good from bad banks is a(n)

a) adverse selection problem.

b) moral hazard problem.

c) asymmetric information problem.

d) too-big-to-fail problem.

4 Which of the following effects of a change in the money supply is most likely to affect the interest rate

differently than the others? a) The expected inflation effect b) The income effect c) The liquidity effect d) The price level effect

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5 If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are

$800 billion, and excess reserves total $0.8 billion, then the money supply is a) $8000. b) $1200. c) $1200.8. d) $8400.

6 A _____ in _____ increases the money supply since it causes the _____ to rise.

a) decrease; reserve requirements; monetary base

b) rise; reserve requirements; money multiplier

c) rise; reserve requirements; monetary base

d) decrease; reserve requirements; money multiplier

7 A bank’s balance sheet

a) shows that total assets equals total liabilities plus equity capital.

b) lists sources and uses of bank funds.

c) indicates whether or not the bank is solvent.

d) does all of the above.

8 A commercial bank is classified as a depository institution because it

a) accepts deposits from individuals and institutions.

b) makes loans.

c) it is responsible for the conduct of monetary policy.

d) does both (a) and (b) of the above

9 A bank holding insufficient reserves can meet its reserve requirements by

a) borrowing federal funds.

b) borrowing from other banks.

c) selling secondary reserves.

d) all of the above.

10 decrease in wealth

a) increases the demand for stocks.

b) increases the demand for bonds.

c) has no effect on bond demand.

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d) reduces the demand for housing..

11 The goals of monetary policy include

a) output stability.

b) stability in the foreign exchange markets.

c) maintenance of the gold standard.

d) all of the above.

12 Bonds with relatively low risk of default are called _____ securities and have a rating of Baa (or BBB)

and above; bonds with ratings below Baa (or BBB) have a higher default risk and are called _____. (a) investment grade; lower grade (b) investment grade; junk bonds (c) high quality; lower grade (d) high quality; junk bonds

13 Which of the following is not one of the eight basic puzzles about financial structure?

a) Debt contracts are typically extremely complicated legal documents that place substantial

restrictions on the behavior of the borrower.

b) Indirect finance, which involves the activities of financial intermediaries, is many times more

important than direct finance, in which businesses raise funds directly from lenders in financial

markets.

c) Collateral is a prevalent feature of debt contracts for both households and business. d) New security issues are the most important source of external funds to finance businesses.

14 If it is generally acceptable as a medium of exchange then it

a) must be a commodity.

b) must be a precious metal such as gold or silver.

c) is money.

d) all of the above.

15 Dividends are paid from

a) liabilities.

b) debts.

c) net earnings.

d) both (a) and (b) of the above.

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16 As the price of a bond _____ and the expected return _____, bonds become more attractive to

investors and the quantity demanded rises. a) falls; rises b) falls; falls c) rises; rises d) rises; falls

17 A security that pays $52.50 in one year and $110.25 in two years, with an interest rate of 5 percent, has

a present value of a) $150. b) $162.50. c) $200. d) $300.

18 The price of one country’s currency in terms of another’s is called

a) the exchange rate.

b) the interest rate.

c) the Dow Jones industrial average.

d) none of the above.

19 If the Fed wants to inject reserves into the banking system, it will usually

a) purchase government securities.

b) raise the discount rate.

c) sell government securities.

d) lower reserve requirements.

20 If the expected return on CBS stock rises from 5 to 10 percent and the expected return on NBC stock

rises from 12 to 18 percent, then the expected return of holding CBS stock _____ relative to NBC stock

and the demand for CBS stock _____. a) rises; rises b) rises; falls c) falls; rises d) falls; falls

Part Ⅱ. This part has 10 True of False Questions and each one is worth 1 points. The total points for

this part are 10 points.

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1 In a world without information and transaction costs, financial intermediaries would not exist.

2 If reserve requirement were elimininated, it would be harder to control interest rates.

3 The quantity demanded of an asset is positively related to its liquidity relative to alternative assets.

4 The price-level effect from an increase in the money supply is a decrease in interest rates in response to the rise in the price level.

5 The yield to maturity is greater than the coupon rate when the bond price is below its face value.

6 Foreign exchange rates, like stock prices, should follow a random walk.

7 Given the return on assets, the lower the bank capital, the higher the return for the owners of the bank.

8 The goal for high employment should therefore not seek an unemployment level of zero.

9 Banks are not the most important source of external funds used to finance businesses.

10 If bonds of different maturities are close substitutes, their interest rates are more likely to move together.

Part Ⅲ. This part has 4 Key Terms Questions and each one is worth 2.5 points. The total points for

this part are 10 points. Please explain briefly for each key term. 1 Default-free bonds

2 Monetary base

3 Open market operations

4 Risk structure of interest rates

Part Ⅳ. This part has 5 Essay Questions and each one is worth 12 points. The total points for this

part are 60 points. ( Please write down your answers as clearly as possible. If I can’t read your hand-writing, I never assume your answers are right )

1 Explain two reasons why the Fed does not have complete control over the level of bank deposits and

lows. Explain how a change in either factor affects the deposit expansion process.

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2 Demonstrate graphically and explain how a reduction in default risk affects the demand or supply of

corporate and Treasury bonds.

3 Explain the Fed’s three tools of monetary policy and how each is used to change the money supply.

Does each tool affect the monetary base or the money multiplier?

4 Explain the concepts of asymmetric information, adverse selection, and moral hazard. When do

adverse selection and moral hazard become relevant to the lending process? How has the financial system developed to deal with these problems?

5 Why has the development of overnight loan markets made it more likely that banks will hold fewer

excess reserves?

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