金融英语第三章答案
米什金 货币金融学 英文版习题答案chapter 3英文习题
Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 3 What Is Money?3.1 Meaning of Money1) To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt.A) wealthB) incomeC) moneyD) creditAnswer: CAACSB: Application of Knowledge2) Money isA) anything that is generally accepted in payment for goods and services or in the repayment of debt.B) a flow of earnings per unit of time.C) the total collection of pieces of property that are a store of value.D) always based on a precious metal like gold or silver.Answer: AAACSB: Application of Knowledge3) Currency includesA) paper money and coins.B) paper money, coins, and checks.C) paper money and checks.D) paper money, coins, checks, and savings deposits.Answer: AAACSB: Analytical Thinking4) Even economists have no single, precise definition of money becauseA) money supply statistics are a state secret.B) the Federal Reserve does not employ or report different measures of the money supply.C) the "moneyness" or liquidity of an asset is a matter of degree.D) economists find disagreement interesting and refuse to agree for ideological reasons. Answer: CAACSB: Reflective Thinking5) The total collection of pieces of property that serve to store value is a person'sA) wealth.B) income.C) money.D) credit.Answer: AAACSB: Application of Knowledge6) A person's house is part of herA) money.B) income.C) liabilities.D) wealth.Answer: DAACSB: Analytical Thinking7) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.A) Money; incomeB) Wealth; incomeC) Income; moneyD) Money; wealthAnswer: DAACSB: Reflective Thinking8) ________ is a flow of earnings per unit of time.A) IncomeB) MoneyC) WealthD) CurrencyAnswer: AAACSB: Application of Knowledge9) An individual's annual salary is herA) money.B) income.C) wealth.D) liabilities.Answer: BAACSB: Analytical Thinking10) When we say that money is a stock variable, we mean thatA) the quantity of money is measured at a given point in time.B) we must attach a time period to the measure.C) it is sold in the equity market.D) money never loses purchasing power.Answer: AAACSB: Reflective Thinking11) The difference between money and income is thatA) money is a flow and income is a stock.B) money is a stock and income is a flow.C) there is no difference—money and income are both stocks.D) there is no difference—money and income are both flows.Answer: BAACSB: Reflective Thinking12) Which of the following is a TRUE statement?A) Money and income are flow variables.B) Money is a flow variable.C) Income is a flow variable.D) Money and income are stock variables.Answer: CAACSB: Reflective Thinking13) Which of the following statements uses the economists' definition of money?A) I plan to earn a lot of money over the summer.B) Betsy is rich—she has a lot of money.C) I hope that I have enough money to buy my lunch today.D) The job with New Company gave me the opportunity to earn more money.Answer: CAACSB: Analytical Thinking3.2 Functions of Money1) Of money's three functions, the one that distinguishes money from other assets is its function as aA) store of value.B) unit of account.C) standard of deferred payment.D) medium of exchange.Answer: DAACSB: Reflective Thinking2) If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts areA) bank deposits.B) reserves.C) money.D) loanable funds.Answer: CAACSB: Reflective Thinking3) ________ are the time and resources spent trying to exchange goods and services.A) Bargaining costsB) Transaction costsC) Contracting costsD) Barter costsAnswer: BAACSB: Application of Knowledge4) Compared to an economy that uses a medium of exchange, in a barter economyA) transaction costs are higher.B) transaction costs are lower.C) liquidity costs are higher.D) liquidity costs are lower.Answer: AAACSB: Reflective Thinking5) When compared to exchange systems that rely on money, disadvantages of the barter system includeA) the requirement of a double coincidence of wants.B) lowering the cost of exchanging goods over time.C) lowering the cost of exchange to those who would specialize.D) encouraging specialization and the division of labor.Answer: AAACSB: Reflective Thinking6) The conversion of a barter economy to one that uses moneyA) increases efficiency by reducing the need to exchange goods and services.B) increases efficiency by reducing the need to specialize.C) increases efficiency by reducing transactions costs.D) does not increase economic efficiency.Answer: CAACSB: Reflective Thinking7) Which of the following statements best explains how the use of money in an economy increases economic efficiency?A) Money increases economic efficiency because it is costless to produce.B) Money increases economic efficiency because it discourages specialization.C) Money increases economic efficiency because it decreases transactions costs.D) Money cannot have an effect on economic efficiency.Answer: CAACSB: Reflective Thinking8) When economists say that money promotes ________, they mean that money encourages specialization and the division of labor.A) bargainingB) contractingC) efficiencyD) greedAnswer: CAACSB: Reflective Thinking9) Money ________ transaction costs, allowing people to specialize in what they do best.A) reducesB) increasesC) enhancesD) eliminatesAnswer: AAACSB: Application of Knowledge10) For a commodity to function effectively as money it must beA) easily standardized, making it easy to ascertain its value.B) difficult to make change.C) deteriorate quickly so that its supply does not become too large.D) hard to carry around.Answer: AAACSB: Reflective Thinking11) All of the following are necessary criteria for a commodity to function as money EXCEPTA) it must deteriorate quickly.B) it must be divisible.C) it must be easy to carry.D) it must be widely accepted.Answer: AAACSB: Analytical Thinking12) Whatever a society uses as money, the distinguishing characteristic is that it mustA) be completely inflation proof.B) be generally acceptable as payment for goods and services or in the repayment of debt.C) contain gold.D) be produced by the government.Answer: BAACSB: Reflective Thinking13) All but the most primitive societies use money as a medium of exchange, implying thatA) the use of money is economically efficient.B) barter exchange is economically efficient.C) barter exchange cannot work outside the family.D) inflation is not a concern.Answer: AAACSB: Reflective Thinking14) Kevin purchasing concert tickets with his debit card is an example of the ________ function of money.A) medium of exchangeB) unit of accountC) store of valueD) specializationAnswer: AAACSB: Analytical Thinking15) When money prices are used to facilitate comparisons of value, money is said to function as aA) unit of account.B) medium of exchange.C) store of value.D) payments-system ruler.Answer: AAACSB: Analytical Thinking16) When there are many goods is that in a barter systemA) transactions costs are minimized.B) there exists a multiple number of prices for each good.C) there is only one store of value.D) exchange of services is impossible.Answer: BAACSB: Reflective Thinking17) In a barter economy the number of prices in an economy with N goods isA) [N(N - 1)]/2.B) N(N/2).C) 2N.D) N(N/2) - 1.Answer: AAACSB: Analytical Thinking18) If there are five goods in a barter economy, one needs to know ten prices in order to exchange one good for another. If, however, there are ten goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another.A) 20B) 25C) 30D) 45Answer: DAACSB: Analytical Thinking19) If there are four goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another.A) 8B) 6C) 5D) 4Answer: BAACSB: Analytical Thinking20) Because it is a unit of account, moneyA) increases transaction costs.B) reduces the number of prices that need to be calculated.C) does not earn interest.D) discourages specialization.Answer: BAACSB: Reflective Thinking21) Dennis notices that jackets are on sale for $99. In this case money is functioning as aA) medium of exchange.B) unit of account.C) store of value.D) payments-system ruler.Answer: BAACSB: Analytical Thinking22) As a store of value, moneyA) does not earn interest.B) cannot be a durable asset.C) must be currency.D) is a way of saving for future purchases.Answer: DAACSB: Analytical Thinking23) Patrick places his pocket change into his savings bank on his desk each evening. By his actions, Patrick indicates that he believes that money is aA) medium of exchange.B) unit of account.C) store of value.D) unit of specialization.Answer: CAACSB: Analytical Thinking24) ________ is the relative ease and speed with which an asset can be converted into a medium of exchange.A) EfficiencyB) LiquidityC) DeflationD) SpecializationAnswer: BAACSB: Application of Knowledge25) Increasing transactions costs of selling an asset make the assetA) more valuable.B) more liquid.C) less liquid.D) more moneylike.Answer: CAACSB: Reflective Thinking26) Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.A) moneyB) stockC) artworkD) goldAnswer: AAACSB: Reflective Thinking27) Of the following assets, the least liquid isA) stocks.B) traveler's checks.C) checking deposits.D) a house.Answer: DAACSB: Analytical Thinking28) Ranking assets from most liquid to least liquid, the correct order isA) savings bonds; house; currency.B) currency; savings bonds; house.C) currency; house; savings bonds.D) house; savings bonds; currency.Answer: BAACSB: Analytical Thinking29) People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money isA) extremely liquid.B) a unique good for which there are no substitutes.C) the only thing accepted in economic exchange.D) backed by gold.Answer: AAACSB: Reflective Thinking30) If the price level doubles, the value of moneyA) doubles.B) more than doubles, due to scale economies.C) rises but does not double, due to diminishing returns.D) falls by 50 percent.Answer: DAACSB: Analytical Thinking31) A fall in the level of pricesA) does not affect the value of money.B) has an uncertain effect on the value of money.C) increases the value of money.D) reduces the value of money.Answer: CAACSB: Analytical Thinking32) A hyperinflation isA) a period of extreme inflation generally greater than 50% per month.B) a period of anxiety caused by rising prices.C) an increase in output caused by higher prices.D) impossible today because of tighter regulations.Answer: AAACSB: Analytical Thinking。
金融市场与金融机构基础(第3章)英文版答案
ANSWERS TO QUESTIONS FOR CHAPTER 3(Questions are in bold print followed by answers.)1. Explain the ways in which a depository institution can accommodate withdrawal and loan demand.A depository institution can accommodate loan and withdrawal demands first by having sufficient cash on hand. In addition it can attract more deposits, borrow from the Fed or other banks, and liquidate some of its other assets.2. Why do you think a debt instrument whose interest rate is changed periodically based on some market interest rate would be more suitable for a depository institution than a long-term debt instrument with a fixed interest rate?This question refers to asset-liability management by a depository institution. An adjustable rate can eliminate or minimize the mismatch of maturity risk. As interest rates rise, the institution would have to pay more for deposits, but would also receive higher payments from its loan.3. What is meant by:a.individual bankingb.institutional bankingc.global bankinga.Individual banking is retail or consumer banking. Such a bank emphasizes individualdeposits, consumer loans and personal financial trust services.b.An institutional bank caters more to commercial, industrial and government customers. Itissues deposits to them and tries to meet their loan needs.c. A global bank encompasses many financial services for both domestic and foreign customers.It is much involved in foreign exchange trading as well as the financial of international trade and investment.4.a.What is the Basel Committee for Bank Supervision?b.What do the two frameworks, Basel I and Basel II, published by the BaselCommittee for Bank Supervision, address regarding banking?a.It is the organization that plays the primary role in establishing risk and managementguidelines for banks throughout the world.b.The frameworks set forth minimum capital requirements and standards.5. Explain each of the following:a.reserve ratiob.required reservesa.The reserve ratio is the percentage of deposits a bank must keep in a non-interest-bearingaccount at the Fed.b.Required reserves are the actual dollar amounts based on a given reserve ratio.6. Explain each of the following types of deposit accounts:a.demand depositb.certificate of depositc.money market demand accounta.Demand deposits (checking accounts) do not pay interest and can be withdrawn at any time(upon demand).b.Certificates of Deposit (CDs) are time deposits which pay a fixed or variable rate of interestover a specified term to maturity. They cannot be withdrawn prior to maturity without a substantial penalty. negotiable CDs (large business deposits) can be traded so that the original owner still obtains liquidity when needed.c.Money Market Demand Accounts (MMDAs) are basically demand or checking accounts thatpay interest. Minimum amounts must be maintained in these accounts so that at least a 7-day interest can be paid. Since many persons find it not possible to maintain this minimum (usually around $2500) there are still plenty of takers for the non-interest-bearing demand deposits.7. How did the Glass-Steagall Act impact the operations of a bank?The Glass-Steagall Act prohibited banks from carrying out certain activities in the securities markets, which are principal investment banking activities. It also prohibited banks from engaging in insurance activities.28. The following is the book value of the assets of a bank:Asset Book Value (in millions)U.S. Treasury securities $ 50Municipal general obligationbonds50Residential mortgages 400Commercial loans 200Total book value $700a.Calculate the credit risk-weighted assets using the following information:Asset Risk WeightU.S. Treasury securities 0%Municipal general obligationbonds20Residential mortgages 50Commercial loans 100b.What is the minimum core capital requirement?c.What is the minimum total capital requirement?a.The risk weighted assets would be $410b.The minimum core capital is $28 million (.04X700) i.e., 4% of book value.c.Minimum total capital (core plus supplementary capital) is 32.8 million, .08X410, which is8% of the risk-weighted assets.9. In later chapters, we will discuss a measure called duration. Duration is a measure of the sensitivity of an asset or a liability to a change in interest rates. Why would bank management want to know the duration of its assets and liabilities?a.Duration is a measure of the approximate change in the value of an asset for a 1% change ininterest rates.b.If an asset has a duration of 5, then the portfolio’s value will change by approximately 5% ifinterest rate changes by 100 basis points.3-310.a.Explain how bank regulators have incorporated interest risk into capitalrequirements.b.Explain how S&L regulators have incorporated interest rate risk into capitalrequirements.a.The FDIC Improvement Act of 1991, required regulators of DI to incorporate interest raterisk into capital requirements. It is based on measuring interest rate sensitivity of the assets and liabilities of the bank.b.The OST adopted a regulation that incorporates interest rate risk for S&L. It specifies that ifthrift has greater interest rate risk exposure, there would be a deduction of its risk-based capital. The risk is specified as a decline in net profit value as a result of 2% change in market interest rate.11. When the manager of a bank’s portfolio of securities considers alternative investments, she is also concerned about the risk weight assigned to the security. Why?The Basel guidelines give weight to the credit risk of various instruments. These weights are 0%, 20%, 50% and 100%. The book value of the asset is multiplied by the credit risk weights to determine the amount of core and supplementary capital that the bank will need to support that asset.12. You and a friend are discussing the savings and loan crisis. She states that “the whole mess started in the early 1980s.When short-term rates skyrocketed, S&Ls got killed—their spread income went from positive to negative. They were borrowing short and lending long.”a.What does she mean by “borrowing short and lending long”?b.Are higher or lower interest rates beneficial to an institution that borrows shortand lends long?a.In this context, borrowing short and lending long refers to the balance sheet structure ofS&Ls. Their sources of funds (liabilities) are short-term (mainly deposits) and their uses (assets) are long-term in nature (e.g. residential mortgages).b.Since long-term rates tend to be higher than short-term ones, stable interest rates would bethe best situation. However, rising interest rates would increase the cost of funds for S&Ls without fully compensating higher returns on assets. Hence a decline in interest rate spread or margin. Thus lower rates, having an opposite effect, would be more beneficial.13. Consider this headline from the New York Times of March 26, 1933: “Bankers will fight Deposit Guarantees.” In this article, it is stated that bankers argue that deposit guarantees will encourage bad banking. Explain why.The barrier imposed by Glass-Steagall act was finally destroyed by the Gramm-Leach Bliley Act of 1999. This act modified parts of the BHC Act so as to permit affiliations between banks and insurance underwriters. It created a new financial holding company, which is authorized to4engage in underwriting and selling securities. The act preserved the right of state to regulate insurance activities, but prohibits state actions that have would adversely affected bank-affiliated firms from selling insurance on an equal basis with other insurance agents.14. How did the Gramm-Leach-Bliley Act of 1999 expand the activities permitted by banks?a.Deposit insurance provides a safety net and can thus make depositors indifferent to thesoundness of the depository recipients of their funds. With depositors exercising little discipline through the cost of deposits, the incentive of some banks owners to control risk-taking accrue to the owners. It becomes a “heads I win, tails you lose” situation.b.One the positive side, deposit insurance provides a comfort to depositors and thus attractsdepositors to financial institutions. But such insurance carries a moral hazard, it can be costly and, unless premiums are risk-based, it forces the very sound banks to subsidize the very risky ones.15. The following quotation is from the October 29, 1990 issue of Corporate Financing Week:Chase Manhattan Bank is preparing its first asset-backed debt issue, becomingthe last major consumer bank to plan to access the growing market, Street asset-backed officialsSaid…Asset-backed offerings enable banks to remove credit card or other loanreceivables from their balance sheets, which helps them comply with capitalrequirements.a.What capital requirements is this article referring to?b.Explain why asset securitization reduces capital requirements.a.The capital requirements mentioned are risk based capital as specified under the BaselAgreement, which forces banks to hold minimum amounts of equity against risk-based assets.b.Securitization effectively eliminates high risk based loans from the balance sheet. The capitalrequirements in the case of asset securitization are lower than for a straight loan.16. Comment on this statement: The risk-based guidelines for commercial banks attempt to gauge the interest rate risk associated with a bank’s balance sheet.This statement is incorrect. The risk-based capital guidelines deal with credit risk, not interest-rate risk, which is the risk of adverse changes of interest rates on the portfolio position.17.a.What is the primary asset in which savings and loan associations invest?b.Why were banks in a better position than savings and loan associations toweather rising interest rates?a.Savings and Loans invest primarily in residential mortgages.b.During 1980's, although banks also suffered from the effects of deregulation and rising3-5interest rates, relatively they were in a better position than S&L association because of their superior asset-liability management.618. What federal agency regulates the activities of credit unions?The principal federal regulatory agency is the National Credit Union Administration.3-7。
金融市场学双语题库及答案（第三章）米什金金融市场与机构
金融市场学双语题库及答案（第三章）米什金金融市场与机构Financial Markets and Institutions, 8e (Mishkin)Chapter 3 What Do Interest Rates Mean and What Is Their Role in Valuation?3.1 Multiple Choice1) A loan that requires the borrower to make the same payment every period until the maturity date is called aA) simple loan.B) fixed-payment loan.C) discount loan.D) same-payment loan.E) none of the above.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition2) A coupon bond pays the owner of the bondA) the same amount every month until the maturity date.B) a fixed interest payment every period, plus the face value of the bond at the maturity date.C) the face value of the bond plus an interest payment once the maturity date has been reached.D) the face value at the maturity date.E) none of the above.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition3) A bond's future payments are called itsA) cash flows.B) maturity values.C) discounted present values.D) yields to maturity.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition4) A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond.Answer: DTopic: Chapter 3.1 Measuring Interest Rates Question Status: Previous Edition5) (I) A simple loan requires the borrower to repay the principal at the maturity date along with an interest payment.(II) A discount bond is bought at a price below its face value, and the face value is repaid at the maturity date.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition6) Which of the following are true of coupon bonds?A) The owner of a coupon bond receives a fixed interest payment every year until the maturity date, when the face or par value is repaid.B) U.S. Treasury bonds and notes are examples of coupon bonds.C) Corporate bonds are examples of coupon bonds.D) All of the above.E) Only A and B of the above.Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition7) Which of the following are generally true of all bonds?A) The longer a bond's maturity, the lower is the rate of return that occurs as a result of the increase in the interest rate.B) Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise.C) Prices and returns for long-term bonds are more volatile than those forshorter-term bonds.D) All of the above are true.E) Only A and B of the above are true.Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition8) (I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment.(II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition9) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year isA) $650.B) $1,300.C) $130.D) $13.E) None of the above.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition10) An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate ofA) 5 percent.B) 8 percent.C) 10 percent.D) 40 percent.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition11) The concept of ________ is based on the notion that a dollar paid to you in the future is less valuable to you than a dollar today.A) present valueB) future valueC) interestD) deflationAnswer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition12) Dollars received in the future are worth ________ than dollars received today. The process of calculating what dollars received in the future are worth today is called ________.A) more; discountingB) less; discountingC) more; inflatingD) less; inflatingAnswer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition13) The process of calculating what dollars received in the future are worth today is calledA) calculating the yield to maturity.B) discounting the future.C) compounding the future.D) compounding the present.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition14) With an interest rate of 5 percent, the present value of $100 received one year from now is approximatelyA) $100.B) $105.C) $95.D) $90.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition15) With an interest rate of 10 percent, the present value ofa security that pays $1,100 next year and $1,460 four years from now is approximatelyA) $1,000.B) $2,000.C) $2,560.D) $3,000.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition16) With an interest rate of 8 percent, the present value of $100 received one year from now is approximatelyA) $93.B) $96.C) $100.D) $108.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition17) With an interest rate of 6 percent, the present value of $100 received one year from now is approximatelyA) $106.B) $100.C) $94.D) $92.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition18) The interest rate that equates the present value of the cash flow received from a debt instrument with its market pricetoday is theA) simple interest rate.B) discount rate.C) yield to maturity.D) real interest rate.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition19) The interest rate that financial economists consider to be the most accurate measure is theA) current yield.B) yield to maturity.C) yield on a discount basis.D) coupon rate.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition20) Financial economists consider the ________ to be the most accurate measure of interest rates.A) simple interest rateB) discount rateC) yield to maturityD) real interest rateAnswer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition21) For a simple loan, the simple interest rate equals theA) real interest rate.B) nominal interest rate.C) current yield.D) yield to maturity.Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition22) For simple loans, the simple interest rate is ________ the yield to maturity.A) greater thanB) less thanC) equal toD) not comparable toAnswer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition23) The yield to maturity of a one-year, simple loan of $500 that requires an interest payment of $40 isA) 5 percent.B) 8 percent.C) 12 percent.D) 12.5 percent.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition24) The yield to maturity of a one-year, simple loan of $400 that requires an interest payment of $50 isA) 5 percent.B) 8 percent.C) 12 percent.D) 12.5 percent.Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition25) A $10,000, 8 percent coupon bond that sells for $10,000 has a yield to maturity ofA) 8 percent.B) 10 percent.C) 12 percent.D) 14 percent.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition26) A $10,000, 8 percent coupon bond that sells for $10,100 has a yield to maturity ________.A) equal to 8 percentB) greater than 8 percentC) less than 8 perfectD) that cannot be calculatedAnswer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: New Question27) Which of the following $1,000 face value securities has the highest yield to maturity?A) A 5 percent coupon bond selling for $1,000B) A 10 percent coupon bond selling for $1,000C) A 12 percent coupon bond selling for $1,000D) A 12 percent coupon bond selling for $1,100Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition28) Which of the following $1,000 face value securities has the highest yield to maturity?A) A 5 percent coupon bond selling for $1,000B) A 10 percent coupon bond selling for $1,000C) A 15 percent coupon bond selling for $1,000D) A 15 percent coupon bond selling for $900Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition29) Which of the following $1,000 face value securities has the lowest yield to maturity?A) A 5 percent coupon bond selling for $1,000B) A 7 percent coupon bond selling for $1,100C) A 15 percent coupon bond selling for $1,000D) A 15 percent coupon bond selling for $900Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: New Question30) Which of the following are true for a coupon bond?A) When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate.B) The price of a coupon bond and the yield to maturity are negatively related.C) The yield to maturity is greater than the coupon rate when the bond price is below the par value.D) All of the above are true.E) Only A and B of the above are true.Answer: DTopic: Chapter 3.1 Measuring Interest Rates Question Status: Previous Edition31) Which of the following are true for a coupon bond?A) When the coupon bond is priced at its face value, the yieldto maturity equals the coupon rate.B) The price of a coupon bond and the yield to maturity are negatively related.C) The yield to maturity is greater than the coupon rate when the bond price is above the par value.D) All of the above are true.E) Only A and B of the above are true.Answer: ETopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition32) Which of the following are true for a coupon bond?A) When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate.B) The price of a coupon bond and the yield to maturity are positively related.C) The yield to maturity is greater than the coupon rate when the bond price is above the par value.D) All of the above are true.E) Only A and B of the above are true.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition33) A consol bond is a bond thatA) pays interest annually and its face value at maturity.B) pays interest in perpetuity and never matures.C) pays no interest but pays its face value at maturity.D) rises in value as its yield to maturity rises.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition34) The yield to maturity on a consol bond that pays $100 yearly and sells for $500 isA) 5 percent.B) 10 percent.C) 12.5 percent.D) 20 percent.E) 25 percent.Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition35) The yield to maturity on a consol bond that pays $200 yearly and sells for $1000 isA) 5 percent.B) 10 percent.C) 20 percent.D) 25 percent.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition36) A frequently used approximation for the yield to maturity on a long-term bond is theA) coupon rate.B) current yield.C) cash flow interest rate.D) real interest rate.Answer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition37) The current yield on a coupon bond is the bond's ________ divided by its________.A) annual coupon payment; priceB) annual coupon payment; face valueC) annual return; priceD) annual return; face valueAnswer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition38) When a bond's price falls, its yield to maturity ________ and its current yield________.A) falls; fallsB) rises; risesC) falls; risesD) rises; fallsAnswer: BTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition39) The yield to maturity for a one-year discount bond equalsA) the increase in price over the year, divided by the initial price.B) the increase in price over the year, divided by the face value.C) the increase in price over the year, divided by the interest rate.D) none of the above.Answer: ATopic: Chapter 3.1 Measuring Interest Rates Question Status: Previous Edition40) If a $10,000 face value discount bond maturing in oneyear is selling for $8,000, then its yield to maturity isA) 10 percent.B) 20 percent.C) 25 percent.D) 40 percent.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition41) If a $10,000 face value discount bond maturing in one year is selling for $9,000, then its yield to maturity is approximatelyA) 9 percent.B) 10 percent.C) 11 percent.D) 12 percent.Answer: CTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition42) If a $10,000 face value discount bond maturing in one year is selling for $5,000, then its yield to maturity isA) 5 percent.B) 10 percent.C) 50 percent.D) 100 percent.Answer: DTopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition43) If a $5,000 face value discount bond maturing in one year is selling for $5,000, then its yield to maturity isA) 0 percent.B) 5 percent.C) 10 percent.D) 20 percent.Answer: ATopic: Chapter 3.1 Measuring Interest RatesQuestion Status: Previous Edition44) The Fisher equation states thatA) the nominal interest rate equals the real interest rate plus the expected rate of inflation.B) the real interest rate equals the nominal interest rate less the expected rate of inflation.C) the nominal interest rate equals the real interest rate less the expected rate of inflation.D) both A and B of the above are true.E) both A and C of the above are true.Answer: DTopic: Chapter 3.2 Distinction Between Real and Nominal Interest Rates Question Status: Previous Edition45) If you expect the inflation rate to be 15 percent next year and a one-year bond hasa yield to maturity of 7 percent, then the real interest rate on this bond isA) 7 percent.B) 22 percent.C) -15 percent.D) -8 percent.E) none of the above.Answer: DTopic: Chapter 3.2 Distinction Between Real and Nominal Interest Rates Question Status: Previous Edition46) If you expect the inflation rate to be 5 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond isA) -12 percent.B) -2 percent.C) 2 percent.D) 12 percent.Answer: CTopic: Chapter 3.2 Distinction Between Real and Nominal Interest Rates Question Status: Previous Edition47) The nominal interest rate minus the expected rate of inflationA) defines the real interest rate.B) is a better measure of the incentives to borrow and lend than the nominal interest rate.C) is a more accurate indicator of the tightness of credit market conditions than the nominal interest rate.D) all of the above.E) only A and B of the above.Answer: DTopic: Chapter 3.2 Distinction Between Real and Nominal Interest RatesQuestion Status: Previous Edition48) The nominal interest rate minus the expected rate of inflationA) defines the real interest rate.B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate.C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate.D) defines the discount rate.Answer: ATopic: Chapter 3.2 Distinction Between Real and Nominal Interest Rates Question Status: Previous Edition49) In which of the following situations would you prefer to be making a loan?A) The interest rate is 9 percent and the expected inflation rate is 7 percent.B) The interest rate is 4 percent and the expected inflation rate is 1 percent.C) The interest rate is 13 percent and the expected inflation rate is 15 percent.D) The interest rate is 25 percent and the expected inflation rate is 50 percent. Answer: BTopic: Chapter 3.2 Distinction Between Real and Nominal Interest Rates Question Status: Previous Edition50) In which of the following situations would you prefer to be borrowing?A) The interest rate is 9 percent and the expected inflation rate is 7 percent.B) The interest rate is 4 percent and the expected inflation rate is 1 percent.C) The interest rate is 13 percent and the expected inflation rate is 15 percent.D) The interest rate is 25 percent and the expected inflation rate is 50 percent. Answer: DTopic: Chapter 3.2 Distinction Between Real and Nominal Interest Rates Question Status: Previous Edition51) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 one year later?A) 5 percentB) 10 percentC) -5 percentD) 25 percentE) None of the aboveAnswer: DTopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition52) What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 one year later?A) 5 percentB) 10 percentC) -5 percentD) -10 percentE) None of the aboveAnswer: CTopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition53) The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,100 one year later isA) 5 percent.B) 10 percent.C) 14 percent.D) 15 percent.Answer: DTopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition54) The return on a 10 percent coupon bond that initially sells for $1,000 and sells for $900 one year later isA) -10 percent.B) -5 percent.C) 0 percent.D) 5 percent.Answer: CTopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition55) Which of the following are generally true of all bonds?A) The only bond whose return equals the initial yield to maturity is one whose time to maturity is the same as the holding period.B) A rise in interest rates is associated with a fall in bond prices, resulting in capital losses on bonds whose term to maturities are longer than the holding period.C) The longer a bond's maturity, the greater is the price change associated with a given interest rate change.D) All of the above are true.E) Only A and B of the above are true.Answer: DTopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition56) Which of the following are true concerning the distinction between interest rates and return?A) The rate of return on a bond will not necessarily equal the interest rate on that bond.B) The return can be expressed as the sum of the current yieldand the rate of capital gains.C) The rate of return will be greater than the interest rate when the price of the bond falls between time t and time t + 1.D) All of the above are true.E) Only A and B of the above are true.Answer: ETopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition57) If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, which bond would you prefer to have been holding?A) A bond with one year to maturityB) A bond with five years to maturityC) A bond with ten years to maturityD) A bond with twenty years to maturityAnswer: ATopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition58) Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent. If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year, what is the yearly return on the bond you are holding?A) 5 percentB) 10 percentC) 15 percentD) 20 percentAnswer: CTopic: Chapter 3.3 Distinction Between Interest Rates and ReturnsQuestion Status: Previous Edition59) (I) Prices of longer-maturity bonds respond more dramatically to changes in interest rates.(II) Prices and returns for long-term bonds are less volatile than those for short-term bonds.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: A。
金融市场学双语题库及答案(第三章)米什金金融市场与机构
B) future value
C) interest
D) deflation
Answer: A
Topic: Chapter 3.1 Measuring Interest Rates
Question Status: Previous Edition
12) Dollars received in the future are worth ________ than dollars received today. The process of calculating what dollars received in the future are worth today is called ________.
A) 5 percent.
B) 8 percent.
C) 10 percent.
D) 40 percent.
Answer: A
Topic: Chapter 3.1 Measuring Interest Rates
Question Status: Previous Edition
11) The concept of ________ is based on the notion that a dollar paid to you in the future is less valuable to you than a dollar today.
B) U.S. Treasury bonds and notes are examples of coupon bonds.
C) Corporate bonds are examples of coupon bonds.
D) All of the above.
金融英语 武汉理工 Unit 3
Background Information
美联储主要职责：
1、制定并负责实施有关的货币政策； 2、对银行机构实行监管，并保护消费者合法的信贷权利； 3、维持金融系统的稳定； 4、向美国政府，公众，金融机构，外国机构等提供可靠的 金融服务。
美联储其它职责：
1、 经济教育 2、 社会超越 3、 经济研究
Text :
Banking Industry
3.1 Introduction to Banking Industry
Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risk in these much smaller transactions are pooled.
2. 在金融领域中，“投机”和“投资”这两个术语事 实上是很特殊的。举个例子来讲，尽管“投资”这 个单词普遍被人们用来描述任何把货币投到一种金 融工具，以期望在一段时间后获得收益的行为。风 险更大的货币行为—包括投资到世界股市的资金-事实上不是一种投资，而是投机行为。
unit3金融英语
Unit 3 Money market
Questions of Unit Three:
5、What is Eurodollar? 6、What is CD? How did it originate? 7、What features does the CD’s interest rate have? 8、What is CP? and how can issuers realize permanent funding with this instrument?
Open-market operation:公开市场操作 The buying and selling of government securities by a central bank, in order to control the money supply.
Dealer:交易商=jobber Dealer means an individual or firm in the securities business who buys and sells stocks and bonds as a principal rather than as an agent, it buys or sells a security on its own account and at its own risk ,its profit or loss is the difference between the buying and selling prices for the same security. on one's own account :为自己的利益
Banking English
Unit 3 Money market
金融英语翻译题第三章
金融英语翻译题第三章第三章1、Depository institutions are highly regulated because of the important role that they play in the country’s financial system. Demand deposit accounts are the principal means that individuals and business entities use for making payments,and government monetary policy is implemented through the banking system.Because of their important role,depository institutions are afforded special privileges such as access to federal deposit insurance and access to a government entity that provides funds for liquidity or emergency needs.由于存款机构在国家金融体系中起着至关重要的作用，对其监管也是非常严格。
活期存款账户是个人和企业主要的支付工具，且政府货币政策也是通过银行系统来实施的。
由于其重要作用，存款机构被赋予许多特权，如可以加入联邦存款保险，或是在流动性需求和紧急情况下求助于政府机构提供现金。
2、All depository institutions face interest rate risk.Managers of a depository institution who have particular expectations about the future direction of interest rates will seek to benefit from these expectations.Those who expect interest rates to rise may pursue a policy to borrow funds for a long time horizon范围，界限and lend funds for a short time horizon.If interest rates are expected to drop, managers may elect to borrow short and lend long.所有的存款机构都面临着利率风险。
金融英语视听说_第三章听力原文及答案解析
译文 男： 黛安娜， 对于美国的次 贷危机你怎 么 看？ 女： 这些天我已 经数百次听到 这个 词了。据我所知， 这是 对冲基金惹的一 场大 祸。 各 种利益的冲突 导致许多 银行和企 业，尤其是投 资银 行陷入困境。 这 是撤 销 金融管制 产生的后果。有人 评论说 他们 将及 时调 整方向，以免重 复1929 年 的悲 剧。 男： 最近有些 经济战 略受到 许多批 评。这 些政策是以提高自由市 场效率的名 义 实 施的。有人批 评说 某些政策用金融操控手段取代了真正富有成效的革新，把 财 富从家庭 转移 到公司，从而使整个美国经济处于高度风险之中。
ቤተ መጻሕፍቲ ባይዱ
W: Yes. Excessive interest rate risk can posea significant threat to a bank
’ｓ
earnings and capital base.
M: Do you know the exact meaning of the interest rate risk?
loan when it is due.
M: What will happen if I could not repay the loan?
W: The bank will sell your mortgaged house and the payment will be used to
repay the loan. M: Oh, it is terrible. I
Dialog 2 M: Professor Wang, would you tell me what would happen if a bank had inadequate liquidity? W: There will be dire consequences, I think. You know that liquidity is a prime concern in banking operation and a shortage of liquidity has often been a trigger for bank failures. However, holding assets in a highly liquid form tends to reduce the income from that asset.
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Chapter 3Money MarketExercisesI．Answer the following questions in English．1．How big is the money market?Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded．The money market is used by participants as a means for borrowing and lending in the short term，from several days to just under a year．Money market securities consist of negotiable certificates of deposit (CDs)，bankers acceptances，U.S．Treasury bills，commercial paper，municipal notes，federal funds and repurchase agreements(repos)．The money market is a subsection of the fixed income market too．2．What are the terms of most T—bills?T-bills are short—term securities that mature in one year or less from their issue date．T—bills are issued with 3 month，6 month，and 1 year maturities．3．Why would a company issue commercial paper?Because For many corporations，borrowing short-term money from banks is often a labored and annoying task．Their desire to avoid banks as much as possible has led to the widespread popularity of commercial paper．4．A money market instrument usually used for import／export payments is known as?Foreign exchange revenue and spending5．What does Eurocurrency encompass?Eurodollars are U.S．dollar—denominated deposits at banks outside of the United States．6．What is a major advantage of money market instruments?Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded．7．What are Eurodollars?Eurodollars are U.S．dollar—denominated deposits at banks outside of the United States．8．Who can issue commercial paper?Commercial paper is an unsecured，short-term loan issued by a corporation，typically for financing accounts receivable and inventories．Furthermore，typically only companies with high credit ratings and credit worthiness issue commercial paper.II．Fill in the each blank with an appropriate word or expression．1．One of the main differences___between______the money market and the stock ma rk et is t h at mo s t mon e y ma rk e t—securities—tra de ina wf u lly h ig hdenominations．2．The money market is better known__as ______a place for large institutions __and________government to manage their short—term cash needs．3．There are several different instruments___in______the money market，offering different returns____on_______different risks．4．CDs are generally issued____by__________commercial banks but they can be bought through brokerages．They bear a specific maturity date(from 3 months to 5 ye a rs)，a sp ec if ie d inte rest rat e，a nd c an be is suedin___an y______denomination，very similar to bonds．5．The biggest reasons that T—bills are so popular is___because__they are one of the few money market instruments_____that____are affordable to the individual investors．6．A bankers’acceptance is a short—term credit investmentcreated__by__a non—financial firm and guaranteed by a bank to make payment．Acceptances are traded ___at________discounts from face value in the secondary market．Ⅲ．Translate the following sentences into English．1．货币市场上的金融工具包括短期的、可交易的、流动的、低风险的债券。
货币市场工具有时被称作是现金的等同物，或简称现金。
Financial instruments on the money market include short-term trading, liquidity, low-risk bonds. Money market instruments, sometimes referred to as a cash equivalent, or simply cash.2．国库券是货币市场上所有金融工具中流动性最强的一种。
国库券是最简单的借钱形式：政府通过向公众出售债券而筹集到资金，投资者则按低于面值折价购买，在债券到期日债券持有人从政府获得等额于债券面值的回报。
Treasury bills are one of the most liquid financial instruments on currency market . Treasury bills are the easiest form to borrow money : government to raise funds by selling bonds to the public, investors discount purchase according to below par value, maturity bondholders in the bond return in the par value of bonds in equal installments from the government.3．大额存单或称CD，是银行的定期存款。
定期存款的存款者不能因需用资金而随时任意提取存款，银行只在定期存款到期时才付给储户利息与本金。
Certificates of deposit, or CDs, bank time deposits. Time deposits can notbecause of the required funds at any time any withdrawals of deposits, banks to pay depositors interest and principal only when the CD matures4．著名的大公司通常自己发行短期无担保的标明借贷关系的票据，而不是直接向银行借款。
这些票据就称为商业票据。
Well-known large companies usually issue bills, short-term unsecured marked lending relationships rather than directly to bank borrowings. These notes called commercial paper5．欧洲美元是指外国银行或美国银行的国外分支机构中的美元存款。
Eurodollar U.S. dollar deposits in foreign banks or foreign branches of U.S. banks6．政府证券交易商运用回购协议作为短期借款手段，这通常是隔夜借款的一种形式。