金融市场与机构-(9)

Chapter9TheMoneyMarketsMultipleChoiceQuestions1.Activityinmoneymarketsincreasedsignificantlyinthelate1970sandearly1980sbecauseof(a)risingshort-terminterestrates.(b)regulationsthatlimitedwhatbankscouldpayfordeposits.(c)both(a)and(b).(d)neither(a)nor(b).Answer:C2.Moneymarketsecuritieshaveallthefollowingcharacteristicsexcepttheyarenot(a)shortterm.(b)money.(c)lowrisk.(d)veryliquid.Answer:B3.Moneymarketinstruments(a)areusuallysoldinlargedenominations.(b)havelowdefaultrisk.(c)matureinoneyearorless.(d)arecharacterizedbyalloftheabove.(e)arecharacterizedbyonly(a)and(b)oftheabove.Answer:D4.Thebankingindustry(a)shouldhaveanefficiencyadvantageingatheringinformationthatwouldeliminatetheneedforthemoneymarkets.(b)existsprimarilytomediatetheasymmetricinformationproblembetweensaver-lendersandborrower-spenders.(c)issubjecttomoreregulationsandgovernmentalcoststhanarethemoneymarkets.(d)alloftheabovearetrue.(e)only(a)and(b)oftheabovearetrue.Answer:D112Mishkin/Eakins•FinancialMarketsandInstitutions,FifthEdition5.Insituationswhereasymmetricinformationproblemsarenotsevere,(a)themoneymarketshaveadistinctcostadvantageoverbanksinprovidingshort-termfunds.(b)themoneymarketshaveadistinctcostadvantageoverbanksinprovidinglong-termfunds.(c)bankshaveadistinctcostadvantageoverthemoneymarketsinprovidingshort-termfunds.(d)themoneymarketscannotallocateshort-termfundsasefficientlyasbankscan.Answer:A6.Brokeragefirmsthatofferedmoneymarketsecurityaccountsinthe1970shadacostadvantageoverbanksinattractingfundsbecausethebrokeragefirms(a)werenotsubjecttodepositreserverequirements.(b)werenotsubjecttothedepositinterestrateceilings.(c)werenotlimitedinhowmuchtheycouldborrowfromdepositors.(d)hadtheadvantageofalltheabove.(e)hadtheadvantageofonly(a)and(b)oftheabove.Answer:E7.Whichofthefollowingstatementsaboutthemoneymarketaretrue?(a)Notallcommercialbanksdealfortheircustomersinthesecondarymarket.(b)Moneymarketsareusedextensivelybybusinessesbothtowarehousesurplusfundsandtoraiseshort-termfunds.(c)ThesinglemostinfluentialparticipantintheU.S.moneymarketistheU.S.TreasuryDepartment.(d)Alloftheabovearetrue.(e)Only(a)and(b)oftheabovearetrue.Answer:E8.Whichofthefollowingstatementsaboutthemoneymarketsaretrue?(a)Mostmoneymarketsecuritiesdonotpayinterest.Insteadtheinvestorpayslessforthesecuritythanitwillbeworthwhenitmatures.(b)Pensionfundsinvestaportionoftheirassetsinthemoneymarkettohavesufficientliquiditytomeettheirobligations.(c)Unlikemostparticipantsinthemoneymarket,theU.S.TreasuryDepartmentisalwaysademanderofmoneymarketfundsandneverasupplier.(d)Alloftheabovearetrue.(e)Only(a)and(b)oftheabovearetrue.Answer:D9.Whichofthefollowingaretruestatementsaboutparticipantsinthemoneymarkets?(a)LargebanksparticipateinthemoneymarketsbysellinglargenegotiableCDs.(b)TheU.S.governmentandcorporationsborrowinthemoneymarketsbecausecashinflowsandoutflowsarerarelysynchronized.(c)TheFederalReserveisthesinglemostinfluentialparticipantintheU.S.moneymarket.(d)Alloftheabovearetrue.(e)Only(a)and(b)oftheabovearetrue.Answer:DChapter9TheMoneyMarkets11310.Themostinfluentialparticipant(s)intheU.S.moneymarket(a)istheFederalReserve.(b)istheU.S.TreasuryDepartment.(c)arethelargemoneycenterbanks.(d)aretheinvestmentbanksthatunderwritesecurities.Answer:A11.TheFedisanactiveparticipantinmoneymarketsmainlybecauseofitsresponsibilityto(a)lowerborrowingcoststoencouragecapitalinvestment.(b)controlthemoneysupply.(c)increasetheinterestincomeofretireesholdingmoneymarketinstruments.(d)assisttheSecuritiesandExchangeCommissioninregulatingthebehaviorothermoneymarketparticipants.Answer:B12.Commercialbanksarelargeholdersof_________andarethemajorissuerof_________.(a)negotiablecertificatesofdeposit;U.S.governmentsecurities(b)U.S.governmentsecurities;negotiablecertificatesofdeposit(c)commercialpaper;Eurodollars(d)Eurodollars;commercialpaperAnswer:B13.Theprimaryfunctionoflargediversifiedbrokeragefirmsinthemoneymarketisto(a)sellmoneymarketsecuritiestotheFederalReserveforitsopenmarketoperations.(b)makeamarketformoneymarketsecuritiesbymaintaininganinventoryfromwhichtobuyorsell.(c)buymoneymarketsecuritiesfromcorporationsthatneedliquidity.(d)buyT-billsfromtheU.S.TreasuryDepartment.Answer:B14.Financecompaniesraisefundsinthemoneymarketbyselling(a)commercialpaper.(b)federalfunds.(c)negotiablecertificatesofdeposit.(d)Eurodollars.Answer:A15.Financecompaniesplayauniqueroleinmoneymarketsby(a)givingconsumersindirectaccesstomoneymarkets.(b)combiningconsumers’investmentstopurchasemoneymarketsecuritiesontheirbehalf.(c)borrowingincapitalmarketstofinancepurchasesofmoneymarketsecurities.(d)assistingthegovernmentinitssalesofU.S.Treasurysecurities.Answer:A114Mishkin/Eakins•FinancialMarketsandInstitutions,FifthEdition16.Wheninflationroseinthelate1970s,(a)consumersmovedmoneyoutofmoneymarketmutualfundsbecausetheirreturnsdidnotkeeppacewithinflation.(b)bankssolidifiedtheiradvantageovermoneymarketsbyofferinghigherdepositrates.(c)brokeragehousesintroducedhighlypopularmoneymarketmutualfunds,whichdrewsignificantamountsofmoneyoutofbankdeposits.(d)consumerswer