宏觀經(jīng)濟(jì)分析 第4章練習(xí)題

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Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall.

CHAPTER4.FINANCIALMARKETS

MULTIPLECHOICEQUESTIONS

1.Whichofthefollowingisacharacteristicofbonds?

a.payzeronominalinterest.

b.canbeusedfortransactions.

c.aresoldforapricethatvariesinverselywiththeinterestrate.

d.alloftheabove.

e.noneoftheabove.

2.Whichofthefollowingisaflowvariable?

a.income.

b.money.

c.financialwealth.

d.alloftheabove.

e.noneoftheabove.

3.Whichofthefollowingisacomponentofmoney?

a.bonds.

b.saving.

c.income.

d.stocks.

e.noneoftheabove.

4.Whichofthefollowingisacomponentofmoney?

a.coinsheldbythenonbankpublic.

b.billsheldbybanks.

c.checkabledeposits.

d.alloftheabove

5.Whichofthefollowingwillcauseanincreaseintheamountofmoneythatonewishestohold?

a.anincreaseintheinterestrateincrease.

b.areductionintheinterestrateincrease.

c.areductioninincome.

d.noneoftheabove

6.Themoneydemandcurvewillshifttotherightwhenwhichofthefollowingoccurs?

a.anincreaseinincome.

b.areductionintheinterestrate.

c.anincreaseinthemoneysupply.

d.alloftheabove.

e.noneoftheabove.

7.Themoneydemandcurvewillshifttotheleftwhenwhichofthefollowingoccurs?

a.areductionintheinterestrate

b.anincreaseintheinterestrate

c.anopenmarketsaleofbondsbythecentralbank

d.anincreaseinincome

e.noneoftheabove

8.WhichofthefollowingisNOTincludedasacomponentoftheM1definitionofmoney?

a.bonds.

b.checkabledeposits.

c.coinsandbillsheldbythenonbankpublic.

d.alloftheabove.

e.noneoftheabove.

9.In2006,theaverageU.S.householdheldapproximatelyhowmuchcurrency(dollarbillsandcoins)?

a.$50.

b.$100.

c.$600.

d.$1600.

e.noneoftheabove.

10.WhichofthefollowingcountrieshasadoptedtheU.S.dollarasitsowncurrency?

a.Ecuador.

b.Mexico.

c.Canada.

d.France.

e.Australia.

11.Atthecurrentinterestrate,supposethesupplyofmoneyislessthanthedemandformoney.Giventhisinformation,weknowthat:

a.thepriceofbondswilltendincrease.

b.thepriceofbondswilltendtofall.

ductionequalsdemand.

d.thegoodsmarketisalsoinequilibrium.

e.thesupplyofbondsalsoequalsthedemandforbonds.

12.Theinterestratewillincreaseasaresultofwhichofthefollowingevents?

a.anincreaseinincome.

b.anopenmarketpurchaseofbondsbythecentralbank.

c.areductioninincome.

d.alloftheabove.

e.noneoftheabove.

13.WhichofthefollowingisNOTanassetonabank'sbalancesheet?

a.Reserves.

b.Loans.

c.checkabledeposits.

d.Alloftheabove.

e.Noneoftheabove.

14.Whichofthefollowingisaliabilityonabank'sbalancesheet?

a.Checkabledeposits.

b.Reserves.

c.Loans.

d.Alloftheabove.

e.Noneoftheabove.

15.Whichofthefollowingisaliabilityforthecentralbank?

a.currency.

b.bonds.

c.savingsaccounts.

d.loans.

e.checkabledeposits.

16.Supposeaone-yeardiscountbondofferstopay$1000inoneyearandcurrentlysellsfor$950.Giventhisinformation,weknowthattheinterestrateonthebondis

a.5.3%.

b.9.5%%.

c.10%.

d.90%.

e.110%.

17.Supposeaone-yeardiscountbondofferstopay$1000inoneyearandcurrentlyhasa15%interestrate.Giventhisinformation,weknowthatthebond'spricemustbe:

a.$869.56.

b.$1150.

c.$850.

d.$950.

e.noneoftheabove.

18.Banksaredifferentfromotherfinancialintermediariesbecause

a.banksreceivefundsandmakeloans.

b.someofabank'sdepositsaremoney.

c.bankscanconductopenmarketoperationsontheirown.

d.banksdonotneedtoholdreservesagainsttheirdeposits.

e.banksareopenlongerhours.

19.Whichofthefollowinggenerallyoccurswhenacentralbankpursuesexpansionarymonetarypolicy?

a.thecentralbankpurchasesbondsandtheinterestrateincreases.

b.thecentralbankpurchasesbondsandtheinterestratedecreases.

c.thecentralbanksellsbondsandtheinterestrateincreases.

d.thecentralbanksellsbondsandtheinterestratedecreases.

20.Whichofthefollowinggenerallyoccurswhenacentralbankpursuescontractionarymonetarypolicy?

a.thecentralbankpurchasesbondsandtheinterestrateincreases.

b.thecentralbankpurchasesbondsandtheinterestratedecreases.

c.thecentralbanksellsbondsandtheinterestrateincreases.

d.thecentralbanksellsbondsandtheinterestratedecreases.

21.Whichofthefollowingwilloccurwhenthecentralbankpursuesexpansionarymonetarypolicy?

a.aleftwardshiftinthemoneydemandcurveandaleftwardshiftinthemoneysupplycurve

b.arightwardshiftinthemoneydemandcurveandaleftwardshiftinthemoneysupplycurve.

c.aleftwardshiftinthemoneydemandcurveandarightwardshiftinthemoneysupplycurve.

d.arightwardshiftinthemoneydemandcurveandarightwardshiftinthemoneysupplycurve.

e.noneoftheabove.

22.Whichofthefollowingisacomponentofhighpoweredmoney?

a.bondsheldbybanks,loans,andbankreserves.

b.currencyincirculationplusbankreserves.

c.currencyincirculationpluscheckabledeposits.

d.bondsheldbybankspluscheckabledeposits.

e.thesumofcurrencyincirculation,bankreserves,andcheckabledeposits.

23.Forthisquestion,assumethatindividualsdoNOTholdcurrency(i.e.,c=0).Iftheratioofreservesto depositsis.10,themoneymultiplieris:

a..1

b..9

c.4

d.5

e.10

24.Whichofthefollowingwillcausethemoneymultipliertobecomesmaller?

a.anincreaseinhighpoweredmoney.

b.adecreaseintheratioofreservestocheckabledeposits.

c.anincreaseinthepublic'spreferenceforcheckingdepositsasopposedtoholdingcurrency.

d.areductioninhighpoweredmoney.

e.noneoftheabove.

25.Themoneysupplywilltendtofallwhenwhichofthefollowingoccurs?

a.acentralbanksaleofbonds.

b.adecreaseintheratioofreservestodeposits.

c.ashiftinpublicpreferencesawayfromcurrencytocheckabledeposits.

d.alloftheabove.

e.noneoftheabove.

26.Whichofthefollowingeventswillcausetheinterestratetoincrease?

a.anopenmarketsaleofbonds

b.anincreaseinthereservedepositratio(i.e.,)

c.anincreaseinincome

d.alloftheabove

27.Thefederalfundsrateisdeterminedinwhichofthefollowingmarkets?

a.themarketforU.S.treasurysecurities

b.themoneymarket

c.thebondmarket

d.themarketforcentralbankmoney

e.noneoftheabove

28.Forthisquestion,assumethatindividualsdoNOTholdcurrency(i.e.,c=0).Themoneymultiplieris equalto:

a.1

b.1/(1-c)

c.

d.1/(1-)

e.noneoftheabove

29.Forthisquestion,assumethatindividualsdoNOTholdcurrency(i.e.,c=0)..Themoneymultiplieris equalto:

a.1/(1-c)

b.1/[c+(1-c)]

c.[c+(1-c)]

d.1/

e.noneoftheabove

30.Forthisquestion,assumethatindividualsholdbothcurrencyandcheckabledeposits.Themoney multiplierisequalto:

a.1/c

b.1/[c+(1-c)]

c.[c+(1-c)]

d.1/

e.1/(1-c)

31.Wewouldexpectwhichofthefollowingtooccurwhenthecentralbankpursuesexpansionarymonetary policy?

a.anincreaseinbondpricesandanincreaseintheinterestrate(i)

b.areductioninbondpricesandanincreaseini

c.anincreaseinbondpricesandareductionini

d.areductioninbondpricesandareductionini

e.noneoftheabove

32.Wewouldexpectwhichofthefollowingtooccurwhenthecentralbankpursuescontractionary monetarypolicy?

a.anincreaseinbondpricesandanincreaseintheinterestrate(i)

b.areductioninbondpricesandanincreaseini

c.anincreaseinbondpricesandareductionini

d.areductioninbondpricesandareductionini

e.noneoftheabove

33.Basedonourunderstandingofthedeterminantsoftheinterestrateandbondprices,weknowthata reductioninincomewillcause:

a.anincreaseinbondpricesandanincreaseintheinterestrate(i)

b.areductioninbondpricesandanincreaseini

c.anincreaseinbondpricesandareductionini

d.areductioninbondpricesandareductionini

e.noneoftheabove

34.Wewouldexpectwhichofthefollowingtooccurwhenthecentralbankconductsanopenmarketsaleof bonds?

a.areductioninthemonetarybase(H)

b.areductioninthemoneymultiplier

c.anincreaseinH

d.anincreaseinthemoneymultiplier

e.both(c)and(d)

35.Wewouldexpectwhichofthefollowingtooccurwhenthecentralbankconductsanopenmarket purchaseofbonds?

a.areductioninthemonetarybase(H)

b.areductioninthemoneymultiplier

c.anincreaseinthemoneymultiplier

d.anincreaseinthemoneysupply

36.TheU.S.governmentcurrentlyinsureseachbankaccountuptowhatlevel?

a.$10,000

b.$50,000

c.$100,000

d.$150,000

37.Anincreaseinthereserveratio,,willcause:

a.anincreaseinthemonetarybase(H)

b.areductioninH

c.anincreaseinthemoneymultiplier

d.areductioninthemoneymultiplier

e.noneoftheabove

38.Areductioninthereserveratio,,willcause:

a.anincreaseinthemonetarybase(H)

b.areductioninHandareductioninthemoneymultiplier

c.anincreaseinthemoneymultiplier

d.areductioninthemoneymultiplier

39.Anincreaseintheparameterc,theproportionofmoneyindividualswishtoholdascurrency,willtendto causewhichofthefollowing?

a.anincreaseinthemonetarybase(H)

b.areductioninH

c.anincreaseinthemoneymultiplier

d.areductioninthemoneymultiplier

40.Areductionintheparameterc,theproportionofmoneyindividualswishtoholdascurrency,willtend tocausewhichofthefollowing?

a.anincreaseinthemonetarybase(H)

b.areductioninH

c.anincreaseinthemoneymultiplier

d.areductioninthemoneymultiplier

41.Anincreaseinincomewilltendtocausewhichofthefollowing?

a.anincreaseinthemonetarybase(H)

b.areductioninH

c.anincreaseintheinterestrate

d.areductioninthemoneymultiplier

e.noneoftheabove

42.Ifindividualsdonotholdcurrency,weknowthat:

a.M=D

b.H=R

c.themoneymultiplieris1/

d.alloftheabove

43.Ifindividualsdonotholdcheckabledeposits,weknowthat:

a.M=CU

b.H=CU

c.themoneymultiplieris1

d.alloftheabove

44.Anincreaseintheinterestratewillcause:

a.areductioninthesupplyofcentralbankmoney

b.areductioninthedemandforcurrency

c.areductioninthedemandforreserves

d.alloftheabove

e.bothbandc

45.Anincreaseinincomewillcause:

a.areductioninthesupplyofcentralbankmoney

b.areductioninthedemandforcurrency

c.areductioninthedemandforreserves

d.noneoftheabove

e.bothbandc

46.Anincreaseinincomewillcause:

a.areductioninthesupplyofcentralbankmoney

b.areductioninthedemandforcurrency

c.anincreaseinthedemandforreserves

d.noneoftheabove

47.Anopenmarketsaleofsecuritieswilltendtocause:

a.areductioninthesupplyofcentralbankmoney

b.areductioninthedemandforcurrency

c.areductioninthedemandforreserves

d.noneoftheabove

ESSAYQUESTIONS

1.First,explainwhythemoneydemandcurveisdownwardsloping.Second,explainwhatfactor(s)willcauseshiftsinthemoneydemandcurve.

2.Explainwhattypesofpoliciesacentralbankcanimplementtoreducetheinterestrate.

3.Graphicallyillustratea