金融市场与机构(10).doc

Chapter10TheBondMarketnMultipleChoiceQuestions1. Comparedtomoneymarketsecurities,capitalmarketsecuritieshave(a) moreliquidity.(b) longermaturities.(c) loweryields.(d) : B2. (I)Securitiesthathaveanoriginalmaturitygreaterthanoneyeararetradedincapitalmarkets.(II)Thebestknowncapitalmarketsecuritiesarestocksandbonds.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) : C3. (I)Securitiesthathaveanoriginalmaturitygreaterthanoneyeararetradedinmoneymarkets.(II)Thebestknownmoneymarketsecuritiesarestocksandbonds.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) : D4. (I)Firmsandindividualsusethecapitalmarketsforlong-terminvestments.(II)Thecapitalmarketsprovideanalternativetoinvestmentinassetssuchasrealestateandgold.(a) (I)istrue,(II)false.(b) (I)isfalse,(II)true.(c) Botharetrue.(d) : C5. Theprimaryreasonthatindividualsandfirmschoosetoborrowlong-termistoreducetheriskthatinterestrateswill_________beforetheypayofftheirdebt.(a) rise(b) fall(c) emorevolatile(d) emorestableAnswer: A6. Afirmthatchoosestofinanceanewplantbyissuingmoneymarketsecurities(a) mustincurthecostofissuingnewsecuritiestorolloveritsdebt.(b) runstheriskofhavingtopayhigherinterestrateswhenitrollsoveritsdebt.(c) incursboththecostofreissuingsecuritiesandtheriskofhavingtopayhigherinterestratesonthenewdebt.(d) : C7. Theprimaryreasonthatindividualsandfirmschoosetoborrowlong-termisto(a) reducetheriskthatinterestrateswillfallbeforetheypayofftheirdebt.(b) reducetheriskthatinterestrateswillrisebeforetheypayofftheirdebt.(c) reducemonthlyinterestpayments,asinterestratestendtobehigheronshort-termthanlong-termdebtinstruments.(d) : B8. Afirmwillborrowlong-term(a) iftheextrainterestcostofborrowinglong-termislessthantheexpectedcostofrisinginterestratesbeforeitretiresitsdebt.(b) iftheextrainterestco