红河学院《宏观经济学》复习指南

Chapter 13

一、选择题(本题包含100小题，每题？分，共？分) 1．Alfred's income exceeds his expenditures. Alfred is a

a. saver who demands money from the financial system. b. saver who supplies money to the financial system. c. borrower who demands money from the financial system. d. borrower who demands money from the financial system.

2．If the government's expenditures exceeded its receipts, it would likely

a. lend money to a bank or other financial intermediary. b. borrow money from a bank or other financial intermediary. c. directly buy bonds from the public. d. directly sell bonds to the public.

3．Which of the following is correct?

a. The maturity of a bond refers to the amount to be paid back. b. The principal of the bond refers to the person selling the bond. c. A bond buyer cannot sell a bond before it matures. d. None of the above are correct.

4．The length of time until a bond matures is called the

a. duration. b. term. c. maturity. d. intermediation.

5．A perpetuity is distinguished from other bonds in that it

a. pays continuously compounded interest. b. pays interest only when it matures. c. never matures.

d. will be used to purchase another bond when it matures unless the owner specifies otherwise.

6．Which of the following is correct?

a. Some bonds have terms as short as a few months.

b. Because they are so risky, junk bonds pay a low rate of interest. c. Corporations buy bonds to raise funds. d. All of the above are correct.

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红河学院《宏观经济学》复习指南

7．Long-term bonds are generally

a. less risky than short-term bonds and so pay higher interest. b. less risky than short-term bonds and so pay lower interest. c. more risky than short-term bonds and so pay higher interest. d. more risky than short-term bonds and so pay lower interest.

8．Compared to long-term bonds, other things the same, short-term bonds generally have

a. more risk and so pay higher interest. b. less risk and so pay lower interest. c. less risk and so pay higher interest.

d. about the same risk and so pay about the same interest.

9．On which bond is default most likely?

a. a junk bond b. a municipal bond c. a U.S. government bond

d. a corporate bond issued by Proctor and Gamble.

10．Stephanie is interested only in the rate of interest and is willing to take a great deal of risk in exchange for a high

return. She should look for bonds with

a. tax exemptions and short terms. b. tax exemptions and long terms. c. no tax exemptions and short terms. d. no tax exemptions and long terms.

11．Municipal bonds pay a

a. low rate of interest because of their high-default risk and because the interest they pay is subject to federal

income tax.

b. low rate of interest because of their low-default risk and because the interest they pay is not subject to federal

income tax.

c. high rate of interest because of their high-default risk and because federal taxes must be paid on the interest

they pay.

d. high rate of interest because of their low-default risk and because the interest they pay is not subject to federal

income tax.

12．Which bond would you expect to pay the highest interest rate?

a. a bond issued by the U.S. government b. a bond issued by General Motors c. a bond issued by New York State d. a bond issued by a new restaurant chain

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红河学院《宏观经济学》复习指南

13．Jerry has the choice of two bonds, one that pays 3 percent interest and one that pays 6 percent interest. Which of the

following is most likely?

a. The 6 percent bond is less risky than the 3 percent bond.

b. The 6 percent bond is a U.S. government bond, and the 3 percent bond is a junk bond. c. The 6 percent bond has a longer term than the 3 percent bond.

d. The 6 percent bond is a municipal bond, and the 3 percent bond is a U.S. government bond.

14．People who buy newly issued stock in a corporation such as Rockwood Pottery provide

a. debt finance and so become part owners of Rockwood. b. debt finance and so become creditors of Rockwood. c. equity finance and so become part owners of Rockwood. d. equity finance and so become creditors of Rockwood.

15．If Huedepool Beer runs into financial difficulty, the stockholders as

a. part owners of Huedepool are paid before bondholders get paid anything at all. b. part owners of Huedepool are paid after bondholders get paid.

c. creditors of Huedepool are paid before bondholders get paid anything at all. d. creditors of Huedepool are paid after bondholders get paid.

16．When opening a restaurant you may need to by ovens, freezers, tables, and cash registers. Economists call these

expenditures

a. capital investment.

b. investment in human capital. c. business consumption expenditures. d. None of the above are correct.

17．When a country saves a larger portion of its GDP, it will have

a. less investment, and so have more capital and higher productivity. b. less investment, and so have less capital and higher productivity. c. more investment, and so have more capital and higher productivity. d. more investment, and so have less capital and higher productivity.

18．People who buy stock in a corporation such as General Electric become

a. creditors of General Electric, so the benefits of holding the stock depend on General Electric's profits. b. creditors of General Electric, but the benefits of holding the stock do not depend on General Electric's profits. c. part owners of General Electric, so the benefits of holding the stock depend on General Electric's profits. d. part owners of General Electric, but the benefits of holding the stock do not depend on General Electric's

profits.

19．Which of the following people purchased the correct asset to meet their objective?

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红河学院《宏观经济学》复习指南

a. Michelle wanted to be a part owner of Mamma Rosa's Pizza, so she purchased a bond issued by Mamma

Rosa's Pizza.

b. Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric

instead of bonds issued by Specific Electric.

c. Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda. d. All of the above are correct.

20．The price of stock traded on exchanges are determined by

a. the Corporate Stock Administration. b. NASDAQ.

c. the supply and demand for the stock. d. All of the above are correct.

21．Which of the following is not an important stock exchange in the United States?

a. New York Stock Exchange b. American Stock Exchange c. Chicago Mercantile Exchange d. NASDAQ

22．All else equal, when people become more optimistic about a company's future, the

a. supply of the stock and the price will both rise. b. supply of the stock and the price will both fall. c. demand for the stock and the price will both rise. d. demand for the stock and the price will both fall.

23．World Wide Delivery Service Corporation develops a way to speed up their deliveries and reduce their costs. We

would expect that this would

a. raise the demand for existing shares of the stock, causing its price to rise. b. decrease the demand for existing shares of the stock, causing its price to fall. c. raise the supply of the existing shares of stock, causing its price to rise. d. raise the supply of the existing shares of stock, causing its price to fall.

24．Stock indexes are

a. the average of a group of stock prices. b. the average of a group of stock yields.

c. reports in the newspaper that report on the price of the stock and earnings of the corporation. d. measures of the risk relative to the profitability of corporations.

25．Volume, as reported in stock tables refers to the

a. number of shares traded.

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