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 .

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A. balance sheet and income statement #

B. income statement and statement of cash flows #

C. balance sheet and statement of owners' equity #

D. all of the above #

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

A. Operating lease

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B. Debenture bonds #

C. Current portion of long-term debt #

D. Convertible bonds #

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

A. by issuing securities to savers #

B. through financial intermediaries #

C. by purchasing securities such as stocks and bonds

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D. all of the above

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E. both A and B #

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

A. High grade corporate bonds

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B. Time" deposits

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C. Stocks in General Electric Company

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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

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

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D. are also called "investment banks" #

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.

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A. future value

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B. present value

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? .

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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

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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 #

C. participated by hedgers or speculators #

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 ______.

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

B. the investment does not affect your cost of production #

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

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

A. more than doubles #

B. less than doubles #

C. doubles #

D. might do any of the above

E. more information is needed #

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

A. journal to the trial balance

B. ledger to the financial statements

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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 #

B. the right to sell the underlying instrument

C. the obligation to buy the underlying instrument #

D. the obligation to sell the underlying instrument

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

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 ______. #

A. above... rise #

B. above... fall

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C. below...fall #

D. below...rise #

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

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C. Eurodollar

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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

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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

D. All of the above #

E. Only A and B

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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

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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 #

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

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E. only B and C

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

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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 #