练习试题：ChoosetheBestAnswer[3]

练习试题：ChoosetheBestAnswer[3] #

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1. The financial statements that are dated for a time period (rather than a specific time) are the .

A. balance sheet and income statement #

B. income statement and statement of cash flows #

C. balance sheet and statement of owners' equity

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D. all of the above

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2. Which of the following is an example of off-balance-sheet financing? ______. #

A. Operating lease

B. Debenture bonds

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C. Current portion of long-term debt #

D. Convertible bonds #

3. Borrowers can gain access to the surplus funds of savers ______.

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A. by issuing securities to savers

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B. through financial intermediaries

C. by purchasing securities such as stocks and bonds #

D. all of the above

E. both A and B #

4. Which of the following assets are most liquid? ______. #

A. High grade corporate bonds #

B. Time" deposits

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C. Stocks in General Electric Company #

D. Passbook savings deposits

5. Secondary markets for securities .

A. deal only in bonds

B. are markets primarily for the initial sale of new issues #

C. are markets for trading in outstanding debts and equity claims #

D. are also called "investment banks"

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6. The concept of ______ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today. #

A. future value #

B. present value

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C. deflation

D. interest

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7. Which of the following would not result in a credit entry in the China's balance of payments? . #

A. The sale of a piece of furniture to a business firm in Japan #

B. Interest and dividends paid on foreign investment in China

C. Interests on a Chinese bank deposit in the United Kingdom #

D. An increase in foreign investment in China #

8. Futures contracts can be ______.

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A. used as protection against large price swings #

B. countered by an offsetting purchase or sale

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C. participated by hedgers or speculators

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D. all of the above #

9. Suppose that you own a business and are considering expanding your productive capital through an increase in investment spending. You will invest only if ______. #

A. you are able to obtain the necessary funds at a low nominal interest rate

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B. the investment does not affect your cost of production

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C. the present value of future income exceeds the cost of the investment plus interest on any money that you must borrow #

D. you observe that your competitors are expanding their productive capital #

10. If Y and V are constant, and M doubles, the quantity equation implies that the price level .

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A. more than doubles #

B. less than doubles

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C. doubles #

D. might do any of the above

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E. more information is needed

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11. Posting is the process of transferring information from the ______. #

A. journal to the trial balance

B. ledger to the financial statements

C. ledger to the trial balance

D. journal to the ledger #

12. A long call option is ______. #

A. the right to buy the underlying instrument

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B. the right to sell the underlying instrument #

C. the obligation to buy the underlying instrument #

D. the obligation to sell the underlying instrument #

13. Which of the following $1 000 face-value securities has the highest yield to maturity? ______.

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A. A 5% coupon bond selling for $1 000 #

B. A 15% coupon bond selling for $1 000 #

C. A 10% coupon bond selling for $1 000 #

D. A 15% coupon bond selling for $900

14. When the price of a bond is ______ the equilibrium price, there is an excess demand of bonds and the price will ______.

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A. above... rise #

B. above... fall #

C. below...fall

D. below...rise

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15. Which of the following accounts is not closed? ______.

A. Supplies Expense #

B. Prepaid Insurance #

C. Interest Revenue

D. Dividends #

16. Which of the following instruments is traded in a capital market? ______. #

A. Bankers acceptance

B. S. Treasury Bill #

C. Eurodollar #

D. Commercial paper #

E. None of the above #

17. Which of the following is generally true of all bonds? ______.

A. The longer a bond maturity, the lower is the rate of return that occurs as a result of the increase in an 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 for shorter-term bonds

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D. All of the above

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E. Only A and B #

18. According to the market segmentation theory of the term structure, ______. #

A. investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope downward

B. bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time

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C. the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity #

D. all of the above #

E. only B and C

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19. Successful financial intermediaries have higher earnings on their investments because they are better equipped than individuals to screen out good from bad risks, thereby reducing losses due to .

A. moral hazard

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B. adverse selection

C. bad luck #

D. financial panics

20. A long-term debt instrument is best defined as one with maturity ______.

A. of more than one year #

B. of more than five years #

C. of more than ten years #

D. of thirty years or more第一考试网

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