广东金融学院期末考试试题

2007 —2008 学年第二学期 A 卷 考试科目：金融市场学（双语）(闭 卷 120 分钟)

系别________ 班 级________ 学号_________ 姓名_________

I. Define the following terms. (15%)

1 Treasury Notes

2 Repurchase Agreements

3 Currency Forwards

4 CDO

5 Hedge Funds

Ⅱ. Decide whether the following statements are true or false. (10%)

1. A bond’s current market value is equal to the present value of the coupon

payments plus the present value of the face amount.( )

2. Discounting the future is the procedure used to find the future value of a dollar

received today.( )

3. The current yield is the best measure of an investor’s return from holding a bond.(

)

4. Unless a bond defaults, an investor cannot lose money investing in bonds.( )

5. The current yield is the yearly coupon payment divided by the current market

price.( )

6 Governments never issue stock because they cannot sell ownership claims.( )

7 Most of new equity issues are preferred stock.( )

8 The issuer of Treasury bond in the US is the Fed. ( )

9 Common stock is the riskiest corporate security, followed by preferred stock and

then bonds.( )

10 Dividend of common stock is fixed. ( )

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Ⅲ. Choose the best answer to each of the following question. (30%)

1 Money market instruments issued by the U.S. Treasury are called

(a) Treasury bills. (b)Treasury notes.

(c) Treasury bonds. (d) Treasury strips.

2 The presence of _________ in financial markets leads to adverse selection and

moral hazard problems that interfere with the efficient functioning of financial

markets.

(a) noncollateralized risk (b) free-riding

(c) asymmetric information (d) costly state verification

3 The primary reason that individuals and firms choose to borrow long-term is to

reduce the risk that interest rates will _________ before they pay off their debt.

(a) rise (b)fall

(c) become more volatile (d) become more stable

4 Compared to money market securities, capital market securities have

(a) more liquidity. (b) longer maturities.

(c) lower yield (d) less risk.

5 Preferred stockholders hold a claim on assets that has priority over the claims of

(a) both common stockholders and bondholders.

(b) neither common stockholders nor bondholders.

(c) common stockholders, but after that of bondholders.

(d) bondholders, but after that of common stockholders.

6. Which of the following can be described as involving indirect finance?

(a) A bank buys a U.S. Treasury bill from one of its depositors.

(b) A corporation buys commercial paper issued by another corporation.

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(c) A pension fund manager buys commercial paper in the primary market.

(d) Both (a) and (c) of the above.

7. Financial markets improve economic welfare because

(a) they allow funds to move from those without productive investment opportunities

to those who have such opportunities.

(b) they allow consumers to time their purchases better.

(c) they weed out inefficient firms.

(d) they do all of the above.

(e) they do (a) and (b) of the above.

8. A country whose financial markets function poorly is likely to

(a) efficiently allocate its capital resources.

(b) enjoy high productivity.

(c) experience economic hardship and financial crises.

(d) increase its standard of living.

9. Which of the following are securities?

(a) A certificate of deposit

(b) A share of Texaco common stock

(c) A Treasury bill

(d) All of the above

(e) Only (a) and (b) of the above

10. Which of the following statements about the characteristics of debt and equity are

true

(a) They both can be long-term financial instruments.

(b) They both involve a claim on the issuer’s income.

(c) They both enable a corporation to raise funds.

(d) All of the above.

(e) Only (a) and (b) of the above

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11. The money market is the market in which _________ are traded.

(a) new issues of securities

(b) previously issued securities

(c) short-term debt instruments

(d) long-term debt and equity instruments

12. Long-term debt and equity instruments are traded in the _________ market.

(a) primary

(b) secondary

(c) capital

(d) money

13. Which of the following are primary markets?

(a) The New York Stock Exchange

(b) The U.S. government bond market

(c) The over-the-counter stock market

(d) The options markets

(e) None of the above

14. Which of the following are secondary markets?

(a) The New York Stock Exchange

(b) The U.S. government bond market

(c) The over-the-counter stock market

(d) The options markets

(e) All of the above

15. A corporation acquires new funds only when its securities are sold in the

(a) secondary market by an investment bank.

(b) primary market by an investment bank.

(c) secondary market by a stock exchange broker.

(d) secondary market by a commercial bank.

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IV.Answer the following questions. (45%)

1. Distinguish between Option and futures contracts. (6%)

2. What are characteristics of capital market? Take three instruments in capital

market as example. (6%)

3. Use the bond demand and supply framework to explain the Fisher effect and why

it occurs.(6%)

4. If investors perceive greater interest rate risk, what will happen to the equilibrium

interest rate in the bond market? Explain using the bond demand and supply

framework.( 6%)

5. How will a decrease in the federal government’s budget deficit affect the

equilibrium interest rate in the bond market? Explain using the bond demand and

supply framework. (6%)

6. What is the expected return on a bond if the return is 9% two-thirds of the time

and 3% one-third of the time? What is the standard deviation of the returns on this

bond? Would you prefer this bond or one with an identical expected return and a

standard deviation of 4.5? Why?(15%)

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