同济大学：《货币金融学》课程教学资源（试卷习题）Chapter 7 Financial Markets

Chapter 7 Financial Markets 1.Single Choice 1.If the interest rate falls,the price of treasury bond will A rise B fall C constant D fluctuate 2.If the demand curve of bonds shift to left,the price of bond will A decrease and the rate of interest will decrease B decrease and the rate of interest will increase C increase and the rate of interest will increase D increase and the rate of interest will decrease 3.Which belong to the long-term capital market?( A stock market B bill market C lending market D CD's market 4.The basic principle of securities trading is( A price priority and time priority;B and price priority,number of priority; C and time preference,number is preferred;D priority number,the price is preferred 5.Long-term capital market,also known as( A.Primary market B.Money market C.Capital markets D.Secondary markets 6.Delivery of the spot market is generally A.1 to 3 days B.1~5 days C.1 weeks D.1 months 7.The liquidity of a financial instrument and the term of repayment A.Negative correlation B.Positive correlation C.reciprocal relationship D.Not relevant 8.At present,there are )stock exchanges in China. A.1B.2C.3D.4 9.A ()pays the owner a fixed coupon payment every year until the maturity date,when the ()value is repaid. A coupon bond;discount B discount bond;discount C coupon bond;face D discount bond;face 10.Which of the following assets has the worst liquidity? A currency B car C US government bonds Dsavings account

Chapter 7 Financial Markets 1.Single Choice 1. If the interest rate falls, the price of treasury bond will ( ) A rise B fall C constant D fluctuate 2. If the demand curve of bonds shift to left, the price of bond will ( ) A decrease and the rate of interest will decrease B decrease and the rate of interest will increase C increase and the rate of interest will increase D increase and the rate of interest will decrease 3. Which belong to the long-term capital market? ( ) A stock market B bill market C lending market D CD's market 4. The basic principle of securities trading is ( ). A price priority and time priority; B and price priority, number of priority; C and time preference, number is preferred; D priority number, the price is preferred 5. Long-term capital market, also known as ( ) A. Primary market B. Money market C. Capital markets D. Secondary markets 6. Delivery of the spot market is generally () A.1 to 3 days B.1 ~ 5 days C.1 weeks D.1 months 7. The liquidity of a financial instrument and the term of repayment ( ) A. Negative correlation B. Positive correlation C. reciprocal relationship D. Not relevant 8. At present, there are ( ) stock exchanges in China. A.1 B.2 C.3 D.4 9. A ( ) pays the owner a fixed coupon payment every year until the maturity date, when the ( ) value is repaid. A coupon bond; discount B discount bond; discount C coupon bond; face D discount bond; face 10. Which of the following assets has the worst liquidity? ( ) A currency B car C US government bonds D savings account

2.Multiple Choice 1,.Which situation would lead to a rise in interest rates on the bond market? () A the risk of stocks rise B expected inflation rate rise C government deficit increase D expected interest rate decrease E none of all 2.According to the payback period of financing tools,financial markets can be divided into ) A monetary market B secondary market C the primary market D capital market 3.Which belong to money market instruments?( A government bond B negotiable CDs C bonds D repurchase agreements 4.Which of the following belongs to direct financial instrument() A.Transferable large amount of time deposit certificate B.Corporate bonds C.Stocks D.Government bonds 5.Holding everything else constant,( A If asset A's risk rises relative to that of alternative assets,the demand will decrease for asset A B The more liquid is asset A,relative to alternative assets,the greater will be the demand for asset A. C The lower the expected return to asset A relative to alternative assets,the greater will be the demand for asset A. D If wealth increases,demand for asset A increases and demand for alternative assets decreases. 3.Short Answer Questions (1)Use demand and supply analysis to explain why an expectation of Fed rate hikes would cause Treasury prices to fall

2. Multiple Choice 1、 .Which situation would lead to a rise in interest rates on the bond market? ( ) A the risk of stocks rise B expected inflation rate rise C government deficit increase D expected interest rate decrease E none of all 2、According to the payback period of financing tools, financial markets can be divided into ( ). A monetary market B secondary market C the primary market D capital market 3、Which belong to money market instruments? ( ) A government bond B negotiable CDs C bonds D repurchase agreements 4、Which of the following belongs to direct financial instrument ( ) A. Transferable large amount of time deposit certificate B. Corporate bonds C. Stocks D. Government bonds 5、Holding everything else constant,（ ） A If asset A's risk rises relative to that of alternative assets, the demand will decrease for asset A. B The more liquid is asset A, relative to alternative assets, the greater will be the demand for asset A. C The lower the expected return to asset A relative to alternative assets, the greater will be the demand for asset A. D If wealth increases, demand for asset A increases and demand for alternative assets decreases. 3、Short Answer Questions (1) Use demand and supply analysis to explain why an expectation of Fed rate hikes would cause Treasury prices to fall

(2)Please describe the bond supply or demand change and describe changes in bond prices and interest rates in the following situations: A People holding wealth increase B the SEC make new policy allowing brokerage firm reducing bond trading commission rate and keep Stock trading commission fee rates constant. C.the volatility of stock return rate decrease D.people predict the rate of interest will increase. E the expected inflation rate will increase. F people hold negative attitude toward the stock return rate. G the deficit of government is high than the expectation. H the economic cycle is into a period of expansion

(2) Please describe the bond supply or demand change and describe changes in bond prices and interest rates in the following situations: A 、People holding wealth increase B 、the SEC make new policy allowing brokerage firm reducing bond trading commission rate and keep Stock trading commission fee rates constant. C、 the volatility of stock return rate decrease D、people predict the rate of interest will increase . E 、the expected inflation rate will increase. F、 people hold negative attitude toward the stock return rate. G、 the deficit of government is high than the expectation. H、 the economic cycle is into a period of expansion