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1、江西财经大学0910货币银行学 A 1) Money supply models tend to focus on the monetary base rather than on reserves since (a) Fed actions have no effect on reserves but have a predictable effect on the monetary base. (b) Fed actions in general have little effect on reserves but have a predictable effect on the mone
2、tary base. (c) Fed actions have a more predictable effect on the monetary base. (d) none of the above. 2) The price of a futures contract at the expiration date of the contract (a) equals the price of the underlying asset. (b) equals the price of the counterparty. (c) equals the hedge position. (d)
3、equals the value of the hedged asset. 3) If the liquidity effect is larger than the other effects, an increase in money growth will (a) lower interest rates. (b) raise interest rates. (c) cause interest rates to rise initially but then fall below the initial level. (d) cause interest rates to fall i
4、nitially but then rise above the initial level. 4) Deposit insurance (a) attracts risk-prone entrepreneurs to the banking industry. (b) encourages bank managers to take on greater risks than they otherwise would. (c) reduces the incentives of depositors to monitor the riskiness of their banks asset
5、portfolios. (d) does all of the above. 5) The _ are the costs associated with deposit outflows, the _ excess reserves banks will want to hold. Page 3(a) lower; more (b) higher; less (c) higher; more (d) None of the above, since deposit outflows cannot be anticipated. 6) The formula linking the money
6、 supply to the monetary base is (a) M m MB. (b) M m MB. (c) m M MB. (d) MB M m. 7) If interest rates are expected to fall in the future, the demand for long-term bonds today _ and the demand curve shifts to the _. (a) rises; right (b) rises; left (c) falls; right (d) falls; left 8) Money is defined
7、as (a) bills of exchange. (b) anything that is generally accepted in payment for goods and services or in the repayment of debt. (c) a risk-free repository of spending power. (d) the unrecognized liability of governments. 9) Federal reserve assets include (a) government securities. (b) bank reserves
8、. (c) currency in circulation. (d) all of the above. 10) Using the one-period valuation model, assuming a year-end dividend of $0.50, an expected sales price of $50, and a required rate of return of 10%, the current price of the stock would be (a) $50.50. (b) $50.00. (c) $45.91. (d) $45.00. 11) If w
9、ealth decreases, the demand for common stocks _ and that of long-term bonds _. (a) increases; increases (b) increases; decreases (c) decreases; decreases (d) decreases; increases 12) The Fed uses three policy tools to manipulate the money supply: open market operations, which affect the _; changes i
10、n discount lending, which affect the _ by influencing the quantity of discount loans; and changes in reserve requirements, which affect the _. (a) money multiplier; monetary base; monetary base (b) monetary base; money multiplier; monetary base (c) monetary base; monetary base; money multiplier (d)
11、money multiplier; money multiplier; monetary base 13) Which of the following statements are true? a) A banks assets are its sources of funds. b) A banks liabilities are its uses of funds. c) A banks balance sheet shows that total assets equal total liabilities plus equity capital. d) Each of the abo
12、ve. 14) The objectives of the Federal Reserve in its conduct of monetary policy include a) economic growth. b) price stability. c) high employment. d) all of the above. 15) Which of the following is not one of the eight basic puzzles about financial structure? a) The financial system is among the mo
13、st heavily regulated sectors of the economy. b) Issuing marketable securities is the primary way businesses finance their operations.c) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds direc
14、tly from lenders in financial markets. d) Banks are the most important source of external funds to finance businesses.16) Because it is a medium of exchange, money a）discourages specialization and the division of labor. b) reduces transaction costs. c) is not allowed to earn interest. d) does only (
15、b) and (c) of the above. 17) Which of the following long-term bonds currently has the lowest interest rate? a) Corporate Aaa bonds b) U.S. Treasury bonds c) Corporate Aa bonds d) Corporate Baa bonds 18) Holding the expected return on bonds constant, an increase in the expected return on common stock
16、s would _ the demand for bonds, shifting the demand curve to the _. a) decrease; left b) decrease; right c) increase; left d) increase; right 19) If a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200? a) 9 percent b) 10 percent c) 11 perce
17、nt d) 12 percent 20) Disadvantages of using reserve requirements to control the money supply and interest rates include a) their overly-powerful impact on the money supply. b) creating potential lending problems for banks with high levels of excess reserves. c) their overly-powerful impact on reserv
18、es and the monetary base. d) all of the above. Part 1 If reserve requirement were elimininated, it would be harder to control interest rates.2 The basic activity of banks is to accept deposits and make loans.3 As a medium of exchange is what distinguishes money from other assets.4 When the coupon bo
19、nd is priced at its face value, the yield to maturity equals the coupon rate.5 If bonds of different maturities are close substitutes, their interest rates are more likely to move together.6 An efficient market is one in which no one ever profits from having better information than the rest.7 The in
20、come effect of an increase in the money supply is a decrease in interest rates in response to the higher level of income.8 Stocks are not the most important source of external financial for businesses.9 A bank maintains bank capital to lessen the chance that it will become insolvent.10 If the demand
21、 for money did not fluctuate, the Fed could pursue both a money supply target and an interest-rate target at the same time.Part . 1 Discount window 2 Money Multiplier 3 Term structure of interest rates 4 LiquidityPart . This part has 5 Essay Questions （5*12”=60）1. Explain the complete formula for th
22、e money supply, and explain how changes in required reserves, excess reserves, the currency ratio, the nonborrowed base, and discount borrowing affect the money supply. 2. Why has the development of overnight loan markets made it more likely that banks will hold fewer excess reserves?3 Assume that n
23、o banks hold excess reserves, and the public holds no currency. If a bank sells a $100 security to the Fed, show, using T-accounts, what happens to this bank and two additional steps in the deposit expansion process, assuming a 10% reserve requirement. How much do deposits and loans increase for the
24、 banking system when the process is completed? 4 During President Reagans administration, his supporters argued that higher real interest rates were the result of policies increasing the profitability of investment. Reagans critics argued that the high interest rates were the result of high budget d
25、eficits. Demonstrate graphically and explain how increased profitability of investments and increased deficits affect bond prices and interest rates. Based on your graphs, is there merit to either viewpoint? 5 If over the next five years, the interest rates on 1-year bonds are expected to be 5, 7, 7
26、, 6, and 5 percent, and the liquidity premium for five-year bonds is 1 percent. According to the expectations theory of the term structure, what is the rate on five-year bonds? According to the liquidity premium theory, what is the rate on five-year bonds? Explain the difference between the two answers.