Chapter 1
Role of Financial Markets and Institutions
Questions
1. Explain the meaning of surplus units and deficit units. Provide an example of each.
ANSWER: Surplus units provide funds to the financial markets while deficit units obtain funds from the financial markets. Surplus units include households with savings, while deficit units include firms or government agencies that borrow funds.
2. Distinguish between primary and secondary markets.
ANSWER: Primary markets are used for the issuance of new securities while secondary markets are used for the trading of existing securities.
3. Distinguish between money and capital markets.
ANSWER: Money markets facilitate the trading of short-term (money market) instruments while capital markets facilitate the trading of long-term (capital market) instruments.
4. Distinguish between perfect and imperfect security markets.
ANSWER: With perfect financial markets, all information about any securities for sale would be freely available to investors, information about surplus and deficit units would be freely available, and all securities could be unbundled into any size desired. In reality, markets are imperfect, so that surplus and deficit units do not have free access to information, and securities can not be unbundled as desired.
5. Explain why the existence of imperfect markets creates a need for financial institutions.
ANSWER: Financial intermediaries are needed to facilitate the exchange of funds between surplus and deficit units. They have the information to provide this service and can even repackage deposits to provide the amount of funds borrowers desire.
6. Explain the meaning of efficient markets. Why might we expect markets to be efficient most of the
time?
ANSWER: If markets are efficient then prices of securities available in these markets properly reflect all information. We should expect markets to be efficient because if they weren't, investors would capitalize on the discrepancy between what prices are and what they should be. This action would force market prices to represent the appropriate prices as perceived by the market.
7. In recent years, several securities firms have been guilty of using inside information when purchasing
securities, thereby achieving returns well above the norm (even when accounting for risk). Does this suggest that the security markets are not efficient? Explain.
ANSWER: Efficiency is often defined with regard to publicly available information. In this case, markets can be efficient, but investors with inside information could possibly outperform the market on a consistent basis. A stronger version of efficiency would hypothesize that even access to inside information will not consistently outperform the market.
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8. What was the purpose of the Securities Act of 1933? What was the purpose of the Securities
Exchange Act of 1934? Do these laws prevent investors from making poor investment decisions?
Explain.
ANSWER: The Securities Act of 1933 was intended to assure complete disclosure of relevant
financial information on publicly offered securities, and prevent fraudulent practices when selling these securities. The Securities Exchange Act of 1934 extended the disclosure requirements to
secondary market issues. It also declared a variety of deceptive practices illegal, but does not prevent poor investments.
9. If barriers to international securities markets are reduced, will a country's interest rate be more or less
susceptible to foreign lending or borrowing activities? Explain.
ANSWER: If international securities market barriers are reduced, a country's interest rate will likely become more susceptible to foreign lending and borrowing activities. Without barriers, funds will flow more freely in between countries. Funds would seek out countries where expected returns are high. Then, the amount of foreign funds invested in any country could adjust abruptly and affect interest rates.
10. In what way could the international flow of funds cause a decline in interest rates?
ANSWER: If a large volume of foreign funds was invested in the United States, it could place
downward pressure on U.S. interest rates. Without this supply of foreign funds, U.S. interest rates would have been higher.
11. Distinguish between the functions of a broker and those of a dealer, and explain how each is
compensated.
ANSWER: Brokers are commonly compensated with commissions on trades, while dealers are compensated on their positions in particular securities. Some dealers also provide brokerage services.
12. Why is it necessary for securities to be somewhat standardized?
ANSWER: Securities can be more easily traded when they are standardized because the specifics of the security transaction are well known. If securities were not standardized, transactions would be slowed considerably as participants would have to negotiate all the provisions.
13. What are the functions of securities firms?
ANSWER: Securities firms provide a variety of functions (such as underwriting and brokerage) that either enhance a borrower's ability to borrow funds or an investor’s abi lity to invest funds.
14. Explain why some financial flows of funds cannot occur through the sale of standardized securities.
ANSWER: Some financial flows, such as most commercial loans, must be provided on a personal basis, since the firms requesting loans have particular needs.
15. If securities were not standardized, how would this affect the volume of financial transactions
conducted by brokers?
ANSWER: If securities were not standardized, the volume of financial transactions conducted by brokers would be reduced, because the documentation would be greater.
16. Commercial banks use some funds to purchase securities and other funds to make loans. Why are the
securities more marketable than loans in the secondary market?
ANSWER: Securities are more standardized than loans and therefore can be more easily sold in the secondary market. The excessive documentation on commercial loans limits a bank's ability to sell loans in the secondary market.
17. How have the asset compositions of savings and loan associations differed from those of commercial
banks? Explain why and how this distinction may change over time.
ANSWER: Savings and loan associations have traditionally concentrated in mortgage lending, while commercial banks have concentrated in commercial lending. Savings and loan associations are now
Chapter 1/Role of Financial Markets and Institutions 3 allowed to diversify their asset portfolio to a greater degree and will likely increase their
concentration in commercial loans (but not to the same degree as commercial banks.
18. With regard to the profit motive, how are credit unions different from other financial institutions?
ANSWER: Credit unions are non-profit financial institutions.
19. Compare the main sources and uses of funds for finance companies, insurance companies, and
pension funds.
ANSWER: Finance companies sell securities to obtain funds, while insurance companies receive insurance premiums and pension funds receive employee/employer contributions. Finance companies use funds to provide direct loans to consumers and businesses. Insurance companies and pension funds purchase securities.
20. What is the function of a mutual fund? Why are mutual funds popular among investors?
ANSWER: A mutual fund sells shares to investors, pools the funds, and invests the funds in a
portfolio of securities. Mutual funds are popular because they can help individuals diversify while using professional expertise to make investment decisions.
21. How does a money market mutual fund differ from a stock or bond mutual fund?
ANSWER: A money market mutual fund invests in money market securities, whereas other mutual funds normally invest in stocks or bonds.
22. Classify the types of financial institutions mentioned in this chapter as either depository or
nondepository. Explain the general difference between depository and nondepository institution sources of funds.
ANSWER: Depository institutions include commercial banks, savings and loan associations, and credit unions. These institutions differ from nondepository institutions in that they accept deposits.
Nondepository institutions include finance companies, insurance companies, pension funds, mutual funds, and money market funds.
23. It is often stated that all types of financial institutions have begun to offer services that were
previously offered only by certain types. Consequently, many financial institutions are becoming more similar in terms of their operations. Yet, the performance levels still differ significantly among types of financial institutions. Why?
ANSWER: Even though financial institutions are becoming more similar, they often differ distinctly from each other in terms of sources and uses of funds. Therefore, their performance levels differ as well.
24. Look in a recent business periodical for news about a recent financial transaction that involves two
financial institutions. For this transaction, determine the following:
a. How will each institution's balance sheet be affected?
b. Will either institution receive immediate income from the transaction?
c. Who is the ultimate user of funds?
d. Who is the ultimate source of funds?
ANSWER: This exercise will force students to understand how the balance sheet and income
statement of a financial institution is affected by various transactions. When a financial institution simply acts as a middleman, income (fees or commissions) are earned, but the institution's asset portfolio is not significantly affected.
25. Which types of financial institutions do you deal with? Explain whether you are acting as a surplus
unit or a deficit unit in your relationship with each financial institution.
ANSWER: This exercise allows students to realize that they constantly interact with financial
institutions, and that they often play the role of a deficit unit (on car loans, tuition loans, etc.).
4 Chapter 1/Role of Financial Markets and Institutions
26. Explain how the privatization of companies in Europe can lead to the development of new securities
markets.
ANSWER: The privatization of companies will force these companies to finance with stocks and debt securities, instead of relying on the federal government for funds. Consequently, secondary markets for stocks and debt securities will be developed over time.
Chapter 2
Determination of Interest Rates
Questions
1.Explain why interest rates changed as they did over the past year.
ANSWER: This exercise should force students to consider how the factors that influence interest rates have changed over the last year, and assess how these changes could have affected interest rates.
2. Explain what is meant by interest elasticity.
ANSWER: Interest elasticity of supply represents a change in the quantity of loanable funds supplied in response to a change in interest rates. Interest elasticity of demand represents a change in the
quantity of loanable funds demanded in response to a change in interest rates.
3. Would you expect federal government demand for loanable funds to be more or less interest elastic
than household demand for loanable funds? Why?
ANSWER: Federal government demand for loanable funds should be less interest elastic than the consumer demand for loanable funds, because the government's planned borrowings will likely occur regardless of the interest rate. Conversely, the quantity of loanable funds by consumers is more
responsive to the interest rate level.
4. If the federal government planned to expand the space program, how might this affect interest rates?
ANSWER: An expanded space program would (a) force the federal government to increase its budget deficit, (b) possibly force any firms involved in facilitating the program to borrow more funds.
Consequently, there is a greater demand for loanable funds. The additional spending could cause higher income and additional saving. Yet, this impact is not likely to be as great. The likely overall impact would therefore be upward pressure on interest rates.
5. Explain why interest rates tend to decrease during recessionary periods.
ANSWER: During a recession, firms and consumers reduce their amount of borrowing. The demand for loanable funds decreases and interest rates decrease as a result.
6. Obtain or develop forecasts of economic growth and inflation. Use this information to forecast
interest rates one year from now.
ANSWER: Open-ended question, intended to illustrate the ease of subjectively creating forecasts, but the difficulty in deciding the appropriate weight to be assigned to each influential factor.
7. Jayhawk Forecasting Services analyzed several factors that could affect interest rates in the future.
Most factors were expected to place downward pressure on interest rates. Jayhawk also felt that although the annual budget deficit was to be cut by 40 percent from the previous year, it would still
Chapter 1/Role of Financial Markets and Institutions 5 be very large. Thus, Jayhawk believed that the deficit's impact would more than offset the other
effects and therefore forecast interest rates to increase by 2 percent. Comment on Jayhawk's logic.
ANSWER: A reduction in the deficit should free up some funds that had been used to support the government borrowings. Thus, there should be additional funds available to satisfy other borrowing needs. Given this situation plus the other information, Jayhawk should have forecasted lower interest rates.
8. Should increasing money supply growth place upward or downward pressure on interest rates? Justify
your answer.
ANSWER: If one believes that higher money supply growth will not cause inflationary expectations, the additional supply of funds places downward pressure on interest rates. However, if one believes that inflation expectations do erupt as a result, demand for loanable funds will also increase, and interest rates could increase (if the increase in demand more than offsets the increase in supply).
9. Consider a scenario where inflation is low and is not expected to rise in the future. In addition,
assume that the Fed substantially increases the money supply. Explain how this would likely affect interest rates.
ANSWER: Interest rates should decrease because the amount of loanable funds will increase without
a corresponding increase in the demand for loanable funds.
10. What is the logic behind the Fisher effect's implied positive relationship between expected inflation
and nominal interest rates?
ANSWER: Investors require a positive real return, which suggests that they will only invest funds if the nominal interest rate is expected to exceed inflation. In this way, the purchasing power of invested funds increases over time. As inflation rises, nominal interest rates should rise as well since investors would require a nominal return that exceeds the inflation rate.
11. What is the difference between the nominal interest rate and real interest rate?
ANSWER: The nominal interest rate is the quoted interest rate, while the real interest rate is defined as the nominal interest rate minus the expected rate of inflation. The real interest rate represents the recent nominal interest rate minus the recent inflation rate.
12. Estimate the real interest rate over the last year.
ANSWER: This exercise forces students to measure last year's nominal interest rate and inflation rate.
13. Review historical interest rates to determine how they react to recessionary periods. Explain this
reaction.
ANSWER: In general, interest rates tend to decline in recessionary periods. This reaction occurs because the demand for loanable funds declines during the recessionary periods, which places
downward pressure of interest rates.
14. Why do forecasts of interest rates differ among experts?
ANSWER: Various factors may influence interest rates, and changes in these factors will affect
interest rate movements. Experts disagree about how various factors will change. They also disagree about the specific influence these factors have on interest rates.
15. During the stock market crash in October 1987, interest rates declined. Use the loanable funds
framework discussed in this chapter to explain why.
ANSWER: The crash led to concerns of a possible recession. The demand for loanable funds declined, causing downward pressure on interest rates. In addition, investors shifted funds out of stocks and into money market securities, causing an increase in the supply of loanable funds.
6 Chapter 1/Role of Financial Markets and Institutions
16. If foreign investors expected that the U.S. dollar's value would weaken over the next few years, how
might this affect (a) the foreign supply of funds to the U.S. markets and (b) U.S. interest rates?
Explain.
ANSWER: The expectation of a weaker U.S. dollar can cause a lower foreign supply of funds to the U.S. markets, as foreign investors reduce their investment in the United States, because a weakened dollar over the investment horizon reduces the return to foreign investors. The reduced foreign supply of funds to U.S. markets places upward pressure on U.S. interest rates.
17. A well-known economist recently suggested that lower interest rates will stimulate the economy. Yet,
this chapter implied that a strong economy can cause high interest rates. Do these concepts conflict?
Explain.
ANSWER: The concepts do not conflict. There are feedback effects between interest rates and
economic growth. Lower interest rates stimulate the economy because they encourage borrowing and therefore spending. Yet, a strong economy can cause an additional desire to borrow, which places upward pressure on interest rates.
18. Assume that if the U.S. dollar strengthens, it can place downward pressure on U.S. inflation. Based
on this information, how might expectations of a strong dollar affect the demand for loanable funds in the United States and U.S. interest rates? Is there any reason to think that expectations of a strong dollar could also affect the supply of loanable funds? Explain.
ANSWER: As a strong U.S. dollar dampens U.S. inflation, it can reduce the demand for loanable funds, and therefore reduce interest rates. The expectations of a strong dollar could also increase the supply of funds because it may encourage saving (there is less concern to purchase goods before prices rise when inflationary expectations are reduced). In addition, foreign investors may invest more funds in the United States if they expect the dollar to strengthen, because that could increase their return on investment.
19. If financial market participants overestimate inflation in a particular period, will real interest rates be
relatively high or low? Explain.
ANSWER: If inflation is overestimated, the real interest rate will be relatively high. Investors had required a relatively high nominal interest rate because they expected inflation to be high (according to the Fisher effect).
20. Why might you expect interest rate movements of various industrialized countries to be more highly
correlated in recent years than in earlier years?
ANSWER: Interest rates among countries are expected to be more highly correlated in recent years because financial markets are more geographically integrated. More international financial flows will occur to capitalize on higher interest rates in foreign countries, which affects the supply and demand conditions in each market. As funds leave a country with low interest rates, this places upward
pressure on that country's interest rates. The international flow of funds caused this type of reaction.
21. In November 1989, the wall separating East and West Germany was removed. Some analysts say that
this event led to an increase in German and U.S. interest rates. Offer a possible explanation as to why this event could have caused an increase in German and U.S. interest rates.
ANSWER: The removal of the wall led to the reunification of East and West Germany, and resulted in economic expansion in Germany. This led to an increased demand for loanable funds from sources in Germany and in the United States, placing upward pressure on interest rates.
22. In August 1990, the Persian Gulf crisis occurred, resulting in some significant reactions in financial
markets. Why would the crisis be expected to place upward pressure on U.S. interest rates? Why might some investors expect the crisis to place downward pressure on U.S. interest rates?
ANSWER: The Persian Gulf crisis placed upward pressure on U.S. interest rates because it (1)
increased inflationary expectations in the United States as oil prices increased abruptly, and (2)
increased the expected U.S. budget deficit as government expenditures were necessary to boost
Chapter 1/Role of Financial Markets and Institutions 7 military support. However, the crisis also caused some analysts to revise their forecasts of economic growth downward. In fact, some analysts predicted that a U.S. recession would occur. The slower economy reflects a reduced corporate demand for funds, which by itself places downward pressure on interest rates. If inflation was not a concern, the Fed may attempt to increase money supply growth to stimulate the economy. However, the inflationary pressure restricted the Fed from stimulating the economy (since any stimulative policy could cause higher inflation).
23. Offer an argument for why the terrorist attack on the United States on September 11, 2001 could
place downward pressure on U.S. interest rates. Offer an argument for why the terrorist attack could place upward pressure on U.S. interest rates.
ANSWER: The terrorist attack could cause a reduction in spending related to travel (airlines, hotels), and would also reduce the expansion by those types of firms. This reflects a decline in the demand for loanable funds, and places downward pressure on interest rates. Conversely, the attack increases the amount of government borrowing needed to support a war, and therefore places upward pressure on interest rates.
Interpreting Financial News
Interpret the following comments made by Wall Street analysts and portfolio managers.
a. “The flight of funds from bank deposits to U.S. stocks will pressure interest rates.”
As the supply of loanable funds declines (due to bank deposit withdrawals), there will be upward pressure on interest rates.
b. “Since Japanese interest rates have recently declined to very low levels, expect a reduction in U.S.
interest rates.”
As Japanese interest rates decline, Japanese savers invest more loanable funds in the United
States, which places downward pressure on U.S. interest rates.
c. “The cost of borrowing by U.S. firms is dictated by the degree to which the federal governmen t
spends more than it taxes.”
As the federal government spends more than it taxes, it borrows the difference; the greater the
amount borrowed, the higher the pressure on U.S. interest rates.
Managing in Financial Markets
As the treasurer of a manufacturing company, your task is to forecast the direction of interest rates. You plan to borrow funds and may use the forecast of interest rates to determine whether you should obtain a loan with a fixed interest rate or a floating interest rate. The following information can be considered when assessing the future direction of interest rates:
?Economic growth has been high over the last two years, but you expect that it will be stagnant over the next year.
?Inflation has been 3 percent over each of the last few years, and you expect that it will be about the same over the next year.
?The federal government has announced major cuts in its spending, which should have a major impact on the budget deficit.
?The Federal Reserve is not expected to affect the existing supply of loanable funds over the next year. ?The overall level of savings by households is not expected to change.
a. Given the preceding information, determine how the demand for and the supply of loanable funds
would be affected (if at all), and determine the future direction of interest rates.
The demand for loanable funds should decline in response to: (1) stagnant economic growth
(because a relatively low level of borrowing will be needed), and (2) a major cut in government
8 Chapter 1/Role of Financial Markets and Institutions
spending. The supply of loanable funds should remain unchanged because the savings level is not expected to change, and the Fed is not expected to affect the existing money supply. Given a large decline in the demand for loanable funds and no significant change in the supply of loanable
funds, U.S. interest rates should decline.
b. You can obtain a one-year loan at a fixed-rate of 8 percent or a floating-rate loan that is currently
at 8 percent but would be revised every month in accordance with general interest rate
movements. Which type of loan is more appropriate based on the information provided?
Since interest rates are expected to decline, you should prefer the floating-rate loan. As interest rates decline, the rate charged on this type of loan would decline.
c. Assume that Canadian interest rates have abruptly risen just as you have completed your forecast
of future U.S. interest rates. Consequently, Canadian interest rates are now 2 percentage points
above U.S. interest rates. How might this specific situation place pressure on U.S. interest rates?
Considering this situation along with the other information provided, would you change your
forecast of the future direction of U.S. interest rates?
This situation could encourage U.S. individuals and firms to withdraw their savings from U.S.
financial institutions and send their funds to Canada to earn a higher interest rate (although they would have to convert their U.S. dollars into Canadian dollars and are therefore exposed to
exchange rate risk). To the extent that savings are withdrawn from U.S. financial institutions,
there would be a reduction in the supply of loanable funds in the U.S. Consequently, this specific situation places upward pressure on the U.S. interest rates.
While this specific situation places upward pressure on U.S. interest rates, the economic growth and the budget deficit are expected to place downward pressure on interest rates.
Therefore, you would still forecast a decline in U.S. interest rates, unless you believe that the
impact of the Canadian situation would overwhelm the impact of the economic growth and the
budget deficit.
Problems
1.Suppose the real interest rate is 6 percent and the expected inflation is 2 percent. What would you
expect the nominal rate of interest to be?
ANSWER:
i = E(INF) + i k
i = 2% + 6% = 8%
2. Suppose that Treasury bills are currently paying 9 percent and the expected inflation is 3 percent.
What is the real interest rate?
ANSWER:
i = E(INF) + i k
i k = i – E(INF)
i k = 9% – 3% = 6%
Chapter 3
Structure of Interest Rates
Chapter 1/Role of Financial Markets and Institutions 9
Questions
1.Identify the relevant characteristics of any security that can affect the security's yield.
ANSWER:
The relevant characteristics are:
1. default risk
2. liquidity
3. tax status
4. maturity
5. special provisions (such as a call feature)
2. What effect does a high credit risk have on securities?
ANSWER: Investors require a higher risk premium on securities with a high default risk.
3. Discuss the relationship between the yield and liquidity of securities.
ANSWER: The greater the liquidity of a security, the lower is the yield, other things being equal.
4. Do investors in high-tax brackets or those in low-tax brackets benefit more from tax-exempt
securities? Why?
ANSWER: High-tax bracket investors benefit more from tax-exempt securities because their tax savings from avoiding taxes is greater.
5. Do municipal bonds or corporate bonds offer a higher before-tax yield at a given point in time? Why?
Which has the higher after-tax yield?
ANSWER: Corporate bonds offer a higher before-tax yield, since they are taxable by the federal government. The municipal bonds may have a higher tax yield for investors subject to a high tax rate.
For low-tax bracket investors, the corporate bonds would likely have a higher after-tax yield.
6. If taxes did not exist, would Treasury bonds offer a higher or lower yield than municipal bonds with
the same maturity? Why?
ANSWER: Treasury bonds would offer a lower yield than municipal bonds because they are
perceived to be risk-free. If taxes did not exist, the required return on Treasury bonds would be lower than on municipal bonds.
7. Explain how a yield curve would shift in response to a sudden expectation of rising interest rates,
according to the pure expectations theory.
ANSWER: The demand for short-term securities would increase, placing upward (downward)
pressure on their prices (yields). The demand for long-term securities would decrease, placing
downward (upward) pressure on their prices (yields). If the yield curve was originally upward sloped, it would now have a steeper slope as a result of the expectation. If it was originally downward sloped, it would now be more horizontal (less steep), or may have even become upward sloping.
8. What is the meaning of the forward rate in the context of the term structure of interest rates?
ANSWER: The forward rate is the expected interest rate at a future point in time.
9. Why might forward rates consistently overestimate future interest rates? How could such a bias be
avoided?
ANSWER: If forward rates are estimated without considering the liquidity premium, it may
overestimate the future interest rates. If a liquidity premium is accounted for when estimating the forward rate, the bias can be eliminated.
10. Assume there is a sudden expectation of lower interest rates in the future. What would be the effect
on the shape of the yield curve? Explain.
ANSWER: The demand for short-term securities would decrease, placing downward (upward)
pressure on their prices (yields). The demand for long-term securities would increase, placing upward
10 Chapter 1/Role of Financial Markets and Institutions
(downward) pressure on their prices (yields). If the yield curve was originally upward sloped, it
would now be more horizontal (less steep). If it was downward sloped, it would now be more steep.
11. Explain the liquidity premium theory.
ANSWER: If investors believe that securities with larger maturities are less liquid, they will require a premium when investing in such securities to compensate. This theory can be combined with the other theories to explain the shape of a yield curve.
12. If liquidity and interest rate expectations are both important for explaining the shape of a yield curve,
what does a flat yield curve indicate about the market's perception of future interest rates?
ANSWER: A flat yield curve without consideration of a liquidity premium would represent no
expected change in interest rates according to the pure expectations theory. Therefore, if the flat yield curve reflects the existence of a liquidity premium, this curve would actually have a slight downward slope when removing the liquidity premium. This suggests expectations of a slight decline in future interest rates.
13. If a downward-sloping yield curve is mainly attributed to segmented markets theory, what does that
suggest about the demand and supply of funds in the short-term and long-term maturity markets?
ANSWER: A downward-sloped yield curve suggests that the demand for short-term funds is high relative to the supply of short-term funds, causing a high yield. In addition, the demand for long-term funds is low relative to the supply of long-term funds, causing a low yield.
14. If the segmented markets theory causes an upward-sloping yield curve, what does this imply?
ANSWER: An upward-sloped yield curve caused by segmented markets implies that the demand for short-term funds is low relative to the supply of short-term funds. In addition, the demand for long-term funds is high relative to the supply of long-term funds.
15. If markets are not completely segmented, should we dismiss the segmented markets theory as even a
partial explanation for the term structure of interest rates? Explain.
ANSWER: No. Even if markets are not completely segmented, investors and borrowers may prefer a particular maturity market. Therefore, they may only switch to a different maturity if there is
sufficient compensation (such as a higher return for investors or a lower cost of borrowing for
borrowers).
16. Explain the preferred habitat theory.
ANSWER: The preferred habitat theory suggests that while investors and borrowers may prefer a natural maturity, they may wander from that maturity under conditions where they can benefit from selecting a different maturity.
17. What factors influence the shape of the yield curve?
ANSWER: The yield curve's shape is affected by the demand and supply conditions for securities in various maturity markets. Expectations of interest rates, the desire for liquidity, and the desire by investors or borrowers for a specific maturity will influence the demand and supply conditions.
18. Describe how financial market participants use the yield curve.
ANSWER: The yield curve can be used to determine the market's expectations of future interest rates.
Market participants can compare their own expectations to the market's expectations in order to
determine their borrowing or investing decisions.
19. Would yields be higher for callable bonds or noncallable bonds that are similar in all other respects?
Why?
ANSWER: Yields are higher for callable bonds than noncallable bonds because the call feature
allows the issuer to retrieve bonds from investors. The issuer must offer a higher yield on callable bonds to compensate investors.
Chapter 1/Role of Financial Markets and Institutions 11 20. Suppose that the Treasury decided to finance its deficit with mostly long-term funds. How could this
decision affect the term structure of interest rates? If short-term and long-term markets are segmented, would the Treasury's decision have a more or less pronounced impact on the term structure? Explain.
ANSWER: If the Treasury borrowed heavily in the long-term markets, it could place upward pressure on long-term rates without having as much of an impact on short-term rates (assuming that markets are somewhat segmented).
21. Assume that the yield curves in the United States, France, and Japan were flat. If the U.S. yield curve
then suddenly become positively sloped, do you think the yield curves in France and Japan would be affected? If so, how?
ANSWER: The yield curves in other countries would also be affected if the event precipitating the shift in the U.S. yield curve affects either actual or expected interest rates in other countries. If long-term interest rates in the United States rise in response to a greater U.S. demand for long-term funds, then the yield curve may have an upward slope. To the extent that this event attracts long-term funds in other countries, there would be a smaller supply of long-term funds in those countries, which could cause higher long-term rates there. Consequently, their yield curves would have an upward slope. Interpreting Financial News
Interpret the following comments made by Wall Street analysts and portfolio managers.
a. "An upward-sloping yield curve persists because many investors stand ready to jump into the
stock market."
Investors are holding short-term treasury securities, and are unwilling to hold long-term
Treasury securities, because they may liquidate these securities soon, and prefer liquid securities that are less susceptible to interest rate risk.
b. "Low-rated bond yields rose as recession fears caused a flight to quality."
As investors selected safer bonds, they sold low-rated bonds, which placed downward pressure
on prices of low-rated bonds and upward pressure on yields of low-rated bonds. Thus, the risk
premium of low-rated bonds increased.
c. "The shift from an upward-sloping yield curve to a downward-sloping yield curve is sending a
warning about a possible recession."
If the shift is due to changes in interest rate expectations, it suggests that interest rates may now be expected to decline. Such expectations can occur when the market expects that economic
growth is slowing or is negative.
Managing in Financial Markets
Monitoring Yield Curve Adjustments
As an analyst at a bond rating agency, you have been asked to interpret the implications of the recent shift in the yield curve. Six months ago, the yield curve exhibited a slight downward slope. Over the last six months, the long-term yields declined, while short-term yields remained the same. Analysts stated that the shift was due to revised expectations of interest rates.
a. Given the shift in the yield curve, does it appear that firms increased or decreased their demand
for long-term funds over the last six months?
The lower long-term yields may be attributed to a reduced demand for long-term funds. That is, firms may have reduced their issuance of long-term securities.
b. Interpret what the shift in the yield curve suggests about the market’s changing expectations of
future interest rates.
The yield curve six months ago implied the expectation of a slight decline in interest rates. The
yield curve today implied the expectation of a larger decline in interest rates.
12 Chapter 1/Role of Financial Markets and Institutions
c. Recently, an analyst argued that the underlying reason for the yield curve shift was that many of the large U.S. firms anticipate a recession. Explain why an anticipated recession could force the yield curve to shift as it has.
When the economic conditions are expected to deteriorate, the demand for loanable funds by firms tends to decrease (because firms reduce their borrowing when they cut back on their expansion plans). Therefore, the long-term yields decline, and the yield curve developed a steeper downward slope. So this shift in the yield curve can indicate to the market that firms are reducing their amount of borrowing, in response to their assessment of future economic conditions.
d. What could the specific shift in the yield curve signal about the ratings of existing corporate bonds? What types of corporations would be most likely to experience a change in their bond ratings as a result of the specific shift in the yield curve?
To the extent that the downward shift in the yield curve signals an anticipated recession (or at least a reduction in economic growth), it could also signal that the creditworthiness of some corporations will decline. Therefore, the bond ratings of some corporations would be downgraded. Corporations that are more sensitive to economic downturns would be more susceptible to a
bond rating downgrade in response to a yield curve shift that signals an anticipated recession. Problems
1. a. Assume that as of today, the annualized two-year interest rate is 13 percent, while the one-year
interest rate is 12 percent. Use only this information to estimate the one-year forward rate.
ANSWER:
%
01.14112
.1)13.1(1)
1()1(2
12
211=-=-++=+i i r t t t
b. Assume that the liquidity premium on a two-year security is 0.3 percent. Use this information to re-estimate the one-year forward rate. ANSWER:
%
74.13)12.1(003.112.113.1r 2
11t =??
????+--=+| 2. Assume that as of today, the annualized interest rate on a three-year security is 10 percent, while the
annualized interest rate on a two-year security is 7 percent. Use only this information to estimate the one-year forward rate two years from now.
ANSWER:
%25.16107
.110.1)i 1()i 1(r 1)
r 1()i 1()i 1(23
2
2t 3
3t 12t 12t 22t 33t =-=++=+++=+++
Chapter 1/Role of Financial Markets and Institutions 13
3. If t 1t 2i i ?, what is the market consensus forecast about the one-year forward rate one year from now?
Is this rate above or below today's one-year interest rate? Explain.
ANSWER:
The one-year forward rate one year from now is:
1)
i 1()i 1(r 1t 2
2t 11t -++=+ If t 1t 2i i ?, then the one-year forward rate one year from now must be below today's one-year interest
rate.
4. You need to choose between investing in a one-year municipal bond with a 7 percent yield and a one-
year corporate bond with an 11 percent yield. If your marginal federal income tax rate is 30 percent and no other differences exist between these two securities, which one would you invest in?
ANSWER:
Y at = Y bt (1 – T)
Y at = 11% (1 – 0.30) = 7.7%—prefer the corporate bond.
5. Assume that interest rates for one-year bonds are expected to be 2 percent today, 4 percent one year
from now and 6 percent two years from now. Using only the pure expectations theory, what are the current interest rates on two-year and three-year bonds as of now?
ANSWER:
(1 + t i 2 )2 = (1 + t i 1) (1 + t+1r 1)
(1 + t i 2 )2 = (1 + 0.02) (1 + 0.04)
(1 + t i 2 )2 = 1.0608
1+ t i 2 = 1.02995
t i 2 = 0.0299
(1 + t i 3)3 = (1 + t i 1) (1 + t+1r 1) (1 + t+2r 1)
(1 + t i 3)3 = (1+0.02) (1+0.04) (1+0.06)
(1 + t i 3)3 = 1.124448
1 + t i 3 = 1.0398
t i 3 = 0.0398
6 a. A corporation is planning to sell its 90-day commercial paper to investors offering an 8.4 percent
yield. If the three-month T-bill’s annualized rate is 7 percent, the default risk premium is
estimated to be 0.6 percent and there is a 0.4 percent tax adjustment, what is the appropriate
liquidity premium?
ANSWER:
Y cp, n = R f,n + DP + LP + TA
LP = Y cp,n – R f,n – DP – TA
LP = 8.4% – 7% – 0.6% – 0.4%
LP = 0.4%
b. If due to unexpected changes in the economy the default risk premium increases to 0.8 percent,
what is the appropriate yield to be offered on the commercial paper (assuming no other changes occur)?
ANSWER:
Y cp,n = R f,n + DP + LP + TA
Y cp,n = 7% + 0.8% + 0.4% + 0.4% = 8.6%
7 a. Use the Forward Interest Rate Template on the CD to determine the forward rate for various one-
year interest rate scenarios if the two-year interest rate is 8 percent, assuming no liquidity
premium. Explain the relationship between the one-year interest rate and the one-year forward rate, holding the two-year interest rate constant.
14 Chapter 1/Role of Financial Markets and Institutions
ANSWER: As the one-year interest rate rises, the forward rate declines. The one-year forward
rate is zero once the one-year interest rate is equal to the two-year interest rate, and it becomes
negative if the one-year interest rate exceeds the two-year interest rate. The forward rate is
reduced when using higher levels of a one-year interest rate, holding a two-year interest rate
constant. The smaller the differential between the two-year and one-year interest rates, the lower is the interest rate in the second year that is needed so that the combination of the two one-year
rates are equal to the two-year rate.
b. Use the Forward Interest Rate Template on the CD to determine the one-year forward rate for the
same one-year interest rate scenarios in question (a), assuming a liquidity premium of .4 percent.
Does the relationship between the one-year interest rate and the forward rate changes when
considering a liquidity premium?
ANSWER: The general relationship between the one-year interest rate and the one-year forward rate still holds.
c. At the beginning of 2001, the yield curve in the United States exhibited a slight upward slope.
When economic conditions weakened substantially in 2001, the one-year interest rate declined
substantially, but the two-year and longer-term interest rates declined only slightly. Use the
Forward Interest Rate Template to simulate such changes in the one-year and two-year interest
rates, and explain how the one-year forward rate was affected by these changes. Based on your
estimated changes in the forward rate, how would the expected interest rate be affected? Would
your general answer about the expected interest rate vary with the liquidity premium that you
might assume throughout this example?
ANSWER: As the short-term interest rates declined to a greater degree, the forward rate would
have become more upward sloping.
d. Use the Forward Interest Rate Template to determine how the one-year forward rate would be
affected if the quoted two-year interest rate rises, holding the quoted one-year interest rate and the liquidity premium constant. Explain the logic of this relationship.
ANSWER: The forward rate increases for higher levels of a two-year interest rate. The greater the differential between the two-year and one-year interest rates, the greater is the interest rate in the second year that is needed so that the combination of the two one-year rates are equal to the two-year rate.
e. Use the Forward Interest Rate Template to determine how the one-year forward rate would be
affected if the liquidity premium rises, holding the quoted one-year and two-year interest rate
constant. Explain the logic of this relationship.
ANSWER: The forward rate is reduced for higher levels of the liquidity premium, holding the
one-year and two-year interest rates constant. The higher the liquidity premium, the greater the
proportion of the interest rate differential (two-year rate minus one-year rate) that is due to
interest rate expectations, and the lower is the one-year forward rate.
8. Use the Tax-adjusted Yield Template to determine how the after-tax yield is affected by higher tax
rates, holding the before-tax yield constant. Explain the logic of this relationship.
ANSWER: The after-tax yield is reduced for higher levels of the tax rate, holding the before-tax yield constant. The higher the tax rate, the greater the proportion of the before-tax yield that is allocated for taxes, and the smaller the proportion of the before-tax yield retained by the investor.
9. a. Use the Debt Security Yield Template to determine how the appropriate yield to be offered on a
security is affected by a higher risk-free rate. Explain the logic of this relationship.
ANSWER: The appropriate yield to be offered on a security would need to be increased if the
risk-free rate rises. A higher yield would be necessary to place the security, as investors still want
a particular premium above the risk-free rate.
Chapter 1/Role of Financial Markets and Institutions 15
b. Use the Debt Security Yield Template to determine how the appropriate yield to be offered on a
security is affected by a higher default risk premium. Explain the logic of this relationship.
ANSWER: The appropriate yield to be offered on a security would need to be increased if the
default premium on the security increased, because the investors would require a higher return to compensate for the higher default risk.
c. Use the Debt Security Yield Template to determine how the appropriate yield to be offered on a
security is affected by a higher call premium. Explain the logic of this relationship.
ANSWER: The appropriate yield to be offered on a security would need to be increased if the call premium on the security increased, because the investors would require a higher return to
compensate for the likelihood that the security will be called before maturity.
d. Use the Debt Security Yield Template to determine how the appropriate yield to be offered on a
security is affected by the existence of a convertibility discount. Explain the logic of this
relationship.
ANSWER: The appropriate yield to be offered on a security would be reduced if the
convertibility discount exists, because the investors would require a lower return if they could
convert the debt security into stock.
Solution to Integrative Problem for Part I
Interest Rate Forecasts and Investment Decisions
1.The appropriate recommendation requires a rational forecast of U.S. interest rates based on the
information provided. A rational forecast can be created by recognizing what factors will or will not influence future interest rates, and weighing the potential influence of any relevant factors. Each of the nine pieces of information provided to the student are addressed below:
1. Movements in interest rates over the year surely affected bond prices, but this information does
not help forecast future interest rates.
2.Changes in economic conditions over the last year affected interest rates (and therefore bond
prices), but this information does not help forecast future interest rates.
3. A slight decline in the U.S. savings rate should place slight upward pressure on U.S. interest rates,
other things being equal.
4.No impact anticipated.
5. A stronger U.S. economy should place upward pressure on U.S. interest rates, regardless of the
economy two years ago. What is important is the change in the future U.S. economy relative to
present conditions, because U.S. bond prices today reflect present U.S. interest rates. Any change in the U.S. demand for loanable funds will change the U.S. interest rates, forcing investors to
revalue U.S. bonds.
6.An increase in the annual U.S. budget deficit (relative to the present period) causes an increase in
U.S. demand for loanable funds, and therefore places upward pressure on U.S. interest rates.
7.An increase in the U.S. inflation rate causes an increase in the demand for loanable funds, and
therefore places upward pressure on U.S. interest rates.
8.The expectation of a weaker dollar by investors around the world could cause foreign investors to
reduce their investing in the United States, causing a net decline in the supply of funds in the
United States provided by foreign investors. Consequently, there is upward pressure on U.S.
interest rates.
16 Chapter 1/Role of Financial Markets and Institutions
9.The market's expectations about future interest rates in the United States are implied by the U.S.
yield curve. Based on the downward slope, and an assumed small liquidity premium, the U.S.
interest rates are expected by the market to decline. However, recall that you are basing your
decision on your own assessment of future interest rates, not the market's assessment. Therefore, you should not use the yield curve as input to your decision.
Overall, Numbers 1, 2, 4, and 9 should have no influence on your forecast of U.S. interest rates.
Number 3 suggests a slight decline in U.S. interest rates, while Numbers 5, 6, 7, and 8 suggest an increase in U.S. interest rates. The net effect is an expected increase in U.S. interest rates.
2.Following the same procedure as stated in Number 1, you can develop a rational forecast of Canadian
interest rates. The assessment of Canadian bonds must be separated from the assessment of U.S.
bonds since Canadian Treasury bond values will not always move in tandem with U.S. Treasury bond values.
Most of the information is either irrelevant for forecasting future interest rates in Canada or suggests no change. The only factors that influence Canadian interest rates and are expected to
change are Canadian inflation and the value of the Canadian dollar. The expected decline in Canadian inflation should place downward pressure on Canadian interest rates. The appreciation of the
Canadian dollar anticipated by investors around the world could cause the supply of funds in Canada to increase (as Canadian investors retain more funds in Canada, and U.S. investors may shift some of their investment to Canada to capitalize on the exchange rate effect). Consequently, there is
downward pressure on Canadian interest rates.
3.The yield on newly issued U.S. corporate bonds should rise to a greater degree than newly issued U.S.
Treasury bonds, because the change in the yield of newly issued corporate bonds should reflect not only the increase in the risk-free rate, but also the increase in the risk premium.
Chapter 4
Functions of the Fed
Questions
1.Briefly describe the origin of the Federal Reserve System.
ANSWER: Two attempts to establish a central bank in the 1800s had failed. In the late 1800s and early 1900s, several bank panics occurred, which encouraged another attempt. In 1913, the Federal Reserve Act was passed and specified 12 districts across the United States, as well as a city in each district where a Federal Reserve district bank was to be established.
2. Describe the functions of the Fed district banks.
ANSWER: The Fed district banks facilitate operations within the banking system by clearing checks, replacing old currency, and providing loans to depository institutions in need of funds.
3. What are the main goals of the Federal Open Market Committee? How does it attempt to achieve
these goals?
ANSWER: The main goals of the FOMC are to promote high employment, economic growth, and price stability.
Chapter 1/Role of Financial Markets and Institutions 17 4. Explain how the Fed increases the money supply through open market operations.
ANSWER: The Fed can increase money supply by purchasing securities in the secondary market. 5. What is the policy directive, and who carries it out?
ANSWER: A policy directive is established by the Fed and submitted to the Trading Desk. The
manager of the Trading Desk must ensure that the directive is achieved.
6. How is the money supply adjusted through the discount window?
ANSWER: Money supply is increased as banks borrow from the Federal Reserve because the level of bank reserves increases. The Fed can increase money supply by encouraging banks to borrow through the discount window and can reduce money supply by discouraging banks from borrowing through the discount window.
7. How is money supply growth affected by an increase in the reserve requirement ratio?
ANSWER: An increase in the reserve requirement ratio reduces the proportion of deposited funds that a financial institution can lend out. Consequently, it reduces the rate by which money can
multiply.
8. What are the disadvantages of using the discount window or reserve requirement ratio to adjust the
money supply?
ANSWER: A change in the discount rate will only be effective in adjusting money supply if
depository institutions respond to the change by borrowing less or more from the Fed.
9. Describe the characteristics that would be desirable for a measure of money to be manipulated by the
Fed.
ANSWER: A desirable measure of money is one that can be precisely controlled by the Fed and has a predictable impact on economic variables.
10. Explain why it is difficult to simultaneously control the money supply and the federal funds rate.
ANSWER: It may be impossible to maintain money supply and the federal funds rate within specific boundaries simultaneously. In order to maintain the federal funds rate within boundaries, the Fed may need to manipulate the money supply, which could force it outside of its boundaries.
11. What are the two key objectives of the Monetary Control Act?
ANSWER: The Monetary Control Act was intended to (1) deregulate the depository institutions industry, and (2) enhance the Fed’s ability to control the money supply.
12. Have the reserve require ment provisions of the Monetary Control Act improved the Fed’s ability to
manipulate the money supply? Explain.
ANSWER: The Monetary Control Act has allowed two monetary policy tools (the discount rate and reserve requirement ratio) to be applicable to all depository institutions rather than just to the member banks of the Federal Reserve system. However, since the Fed rarely uses these tools to control money supply growth, it is questionable whether monetary control was enhanced.
Another provision of the Act is that all depository institutions report their deposit levels promptly to the Fed, which may increase the Fed’s knowledge about existing deposit levels in the banking system. This may help the Fed make appropriate decisions about future monetary growth targets. 13. How does the Monetary Control Act help the Fed avoid improper adjustments in the money supply?
ANSWER: Because the Monetary Control Act requires the depository institutions report their deposit levels promptly to the Fed, this may help the Fed avoid improper adjustments in the money supply.
18 Chapter 1/Role of Financial Markets and Institutions
Interpreting Financial News
Interpret the following comments made by Wall Street analysts and portfolio managers.
a. “The Fed’s future monetary policy will be dependent on the economic indicators to b e reported
this week.”
The Fed makes policy decisions based on expectations about economic conditions, and its
expectations are influenced by the economic indicators.
b. “The Fed’s role is to take the punch bowl away just as the party is coming alive.”
The Fed attempts to prevent the economy from becoming too strong by slowing the economy
down during periods of excessive growth; in this way, it reduces the upward pressure on prices (inflation).
c. “Inflation will likely increase because real short-ter m interest rates currently are negative.”
Negative real short-term interest rates imply that the inflation rate exceeds the existing nominal interest rate. Under these conditions, savers may not perceive saving to be worthwhile because
interest rates are too low, and borrowers may borrow even more because of relatively low
interest rates. Therefore, inflation could increase in response to the high degree of spending. Managing in Financial Markets
As a manager of a large U.S. firm, one of your assignments is to monitor U.S. economic conditions so that you can forecast the demand for products sold by your firm. You recognize that the Federal Reserve attempts to implement monetary policy to affect economic growth and inflation. In addition, you recognize that the administration of the federal government implements spending and tax policies (fiscal policy) to affect economic growth and inflation. Yet, it is difficult to achieve high economic growth without igniting inflation. It is often said that the Federal Reserve is independent of the administration in Washington, D.C. yet, there is much interaction between monetary and fiscal policies.
Assume that the economy is currently stagnant, and some economists are concerned about the possibility of a recession. Some industries, however, are experiencing high growth, and inflation is higher this year than in the previous five years. Assume that the Federal Reserve chairman’s term will expire in four months and that the president of the United States will have to appoint a new chairman (or reappoint the existing chairman). It is widely known that the existing chairman would like to be reappointed. Also assume that next year is an election year for the administration.
a. Given the circumstances, do you expect that the administration will be more concerned about
increasing economic growth or reducing inflation?
While answers may vary among students, the administration is normally most concerned with
resolving the unemployment problem by increasing economic growth. This would be especially
true just before an election year.
b. Given the circumstances, do you expect that the Fed will be more concerned about increasing
economic growth or reducing inflation?
The Fed tends to focus on maintaining a low level of inflation, because of the possibility that
sustained high inflation can cause high interest rates, which may result in a sluggish economy in the long run. It is not unusual for the Fed to focus on fighting inflation while the administration is more concerned about economic growth. However, given that the chairman of the Fed wants to be reappointed, he may be more willing to endorse a monetary policy that is desired by the
administration (assuming that he is politically motivated).
c. Your firm is relying on you for some insight on how the government will influence economic
conditions and therefore the demand for your firm’s products. Given the circumstances, what is your forecast of how the government will affect economic conditions?
Chapter 1/Role of Financial Markets and Institutions 19 There is no definite answer, but some possible expectations are as follows. First, both policies
may focus on economic growth for political or other reasons. In this case, there is a high
probability that the policies will be somewhat successful. Alternatively, the Fed may focus more on solving inflation while the administration focuses on economic growth. In this case, it is
difficult to know whether either policy will be successful. Thus, there may not be much of an effect on the economic conditions. The key to this question is to create class discussion, and make sure students realize how difficult it is to forecast the impact of the government. Students should also recognize how politics can play a role in the effect on the economy.
Chapter 5
Monetary Theory and Policy
Questions
1.How does the Fed’s monetary policy affect economic conditions?
ANSWER: The Fed’s monetary policy can affect the supply of loanable funds available in financial markets and therefore may affect interest rates. It may also affect inflation (with a lag) and therefore affect the demand for loanable funds by influencing inflationary expectations.
2.Describe the economic tradeoff faced by the Fed in achieving its economic goals.
ANSWER: In general, a stimulative monetary policy can increase economic growth and reduce
unemployment, but may increase inflation. A restrictive monetary policy can keep inflationary
pressure low but may cause low economic growth and higher unemployment.
3. What is a criticism of a loose-money policy?
ANSWER: A loose-money policy may result in higher inflation
4. When does the Fed use a loose-money policy and when does it use a tight-money policy?
ANSWER: A loose monetary policy may be used to stimulate the economy, especially if inflation is not a concern. A tight monetary policy may be used to slow economic growth in order to reduce inflationary fears.
5. Briefly summarize the pure Keynesian philosophy and identify the key variable considered.
ANSWER: The pure Keynesian philosophy suggests that the money supply should be adjusted by the Fed to influence interest rates and aggregate spending for goods and services. A loose-money policy can lower interest rates and increase aggregate spending, while a tight-money policy can increase interest rates and reduce aggregate spending.
6. Briefly summarize the Monetarist approach.
ANSWER: The Monetarist philosophy advocates a stable, low growth in the money supply.
Monetarists may contend that sporadic changes in money supply growth are likely to result in volatile business cycles.
7. Why may the Fed have difficulty in controlling the economy in a manner desired? Be specific.
ANSWER: The Fed has difficulty in controlling the economy because it cannot always maintain money growth within its target boundaries. In addition, the impact of monetary growth on the
20 Chapter 1/Role of Financial Markets and Institutions
economy may be different than what was anticipated.
8. What is the recognition lag? Explain why it occurs.
ANSWER: The recognition lag represents the time from when a problem exists until it is recognized by the Fed. It occurs because the economic statistics that are monitored to detect problems are only reported periodically.
9. When does the implementation lag occur?
ANSWER: The implementation lag occurs when the Fed recognizes a problem but does not
implement a policy to solve the problem until later.
10. Assume that the Fed’s primary goal is to cure inflation. How can it use open market operations to
achieve its goal? What is a possible adverse effect of this action by the Fed (even if it achieves its goal)?
ANSWER: To cure inflation, the Fed may use a restrictive monetary policy, which will reduce
economic growth and inflationary pressure. A possible adverse effect is an increase in the
unemployment rate.
11. When it was announced on June 2, 1987, that Paul Volcker would resign as chairman of the Federal
Reserve, the dollar weakened substantially. Why do you think this may have occurred?
ANSWER: Volker was known for his ability to maintain low inflation. When Volcker resigned, inflationary fears increased. Expectations of higher inflation can cause expectations of a weaker dollar. Thus, there was a shift by corporations and financial institutions out of dollar positions and into foreign currencies, which placed immediate downward pressure on the dollar.
12. Why do financial market participants closely monitor money supply movements?
ANSWER: Money supply movements can affect interest rates and other economic variables that influence security prices. Therefore, financial market participants can monitor money policy to
develop forecasts of future security prices.
13. Why do financial market participants who monitor monetary policy have only limited success in
forecasting economic variables?
ANSWER: Financial market participants may incorrectly forecast money supply movements, causing them to incorrectly forecast economic variables. Yet, even if they forecast money supply movements correctly, they may incorrectly anticipate the impact of money supply movements on economic
variables.
14. If a change in the discount rate is not likely to directly affect market interest rates, why do financial
markets sometimes react to such a change?
ANSWER: A change in the discount rate may signal the Fed’s plan to adjust money supply targets and attempt to raise or lower interest rates, which would affect prices of securities such as bonds and mortgages.
15. Why would the Fed try to avoid frequent changes in the money supply?
ANSWER: Frequent changes in the money supply may suggest that the Fed is unsure as to what the appropriate monetary policy should be. T his could reduce the market’s confidence in the Fed.
16. Explain why an increase in the money supply can affect interest rates in different ways. Include the
potential impact of the money supply on the supply of and the demand for loanable funds when
answering this question.
ANSWER: An increase in money supply increases the supply for loanable funds and therefore can place downward pressure on interest rates. Yet, it can also cause inflationary expectations, resulting in an increased demand for loanable funds and upward pressure on interest rates.
全国2013年1月高等教育自学考试 金融市场学试题 课程代码：00077 请考生按规定用笔将所有试题的答案涂、写在答题纸上。 选择题部分 注意事项： 1.答题前，考生务必将自己的考试课程名称、姓名、准考证号用黑色字迹的签字笔或钢笔填写在答题纸规定的位置上。 2.每小题选出答案后，用2B铅笔把答题纸上对应题目的答案标号涂黑。如需改动，用橡皮擦干净后，再选涂其他答案标号。不能答在试题卷上。 一、单项选择题(本大题共20小题，每小题1分，共20分) 在每小题列出的四个备选项中只有一个是符合题目要求的，请将其选出并将“答题纸”的相应代码涂黑。错涂、多涂或未涂均无分。 1.现代意义上的证券交易所最早成立于 A.意大利佛罗伦萨 B.荷兰阿姆斯特丹 C.英国伦敦 D.美国费城 2.中央银行发行和回购的市场是 A.政府债券市场 B.货币市场 C.央行票据市场 D.同业拆借市场 3.同业拆借期限最长不超过 ．．． A.3个月 B.6个月 C.9个月 D.1年 4.我国同业拆借市场使用的利率是 A.SHIBOR B.LIBOR C.HIBOR D.NIBOR 5.下列有价证券中，具有“二次融资”特点的是 A.普通可转换公司债券 B.可分离交易转换债券 C.普通股 D.优先股 6.每股净资产反映的是股票的 A.票面价值 B.账面价值 C.清算价值 D.内在价值 7.A公司每股净资产值为5元，预计溢价倍数为2，则每股发行价格为 D.10元 8.下列关于股票发行价格的影响因素中，说法正确的是 A.税后净利润越高，发行价格越高 B.股票发行数量越大，发行价格可能越高 C.传统产业且竞争能力较差的企业，其发行的股票价格越高 D.宏观经济前景悲观时，发行价格越高
第三章 计算题 1.2007年5月10日中国建设银行07央行票据25的报价为98.01元。07央行票据25是央行发行的一年期贴现票据。债券起息日为2007年3月21日，到期日为2008年3月21日，到期日为2008年3月21日。计算2007年5月10日 贴现收益率、等价年收益率和债券等价收益率。 解答： 贴现收益率 ()%27.2316 36010001.98-100 =??????? 有效年收益率 ()%35.21-10001.98-1001316365 =?? ????+ 等价收益率 ()%35.2316 36510001.98-100 =??????? 第四章 1.假设投资经理李先生约定6年后向投资者支付100万元，同时，他有把握每年实现12%的到期收益率，那么李先生现在要向投资者要求的初始投资额是多少？ 解答： ()() 506600%121100000016=+=+=t y FV P 2.某一债券面值为1000元，票面利率为6%，期限为3年，约定每年付息一次，三年后归还本金。如果投资者的预期年收益率为9%，则该债券的内在价值是多少？ 解答： ()()()06.92409.01100009.016009.016009.0160332=+++++++=PV 3.一种30年期的债券，息票率为8%，半年付息一次，5年后可按1100美元提前赎回。此债券现在按到期收益率7%售出。 （1）赎回收益率为多少？
（2）若赎回价格为1050美元，赎回收益率为多少？ （3）若赎回保护期为2年，赎回收益率为多少？ 解答： 以半年计，所得赎回收益率分别为3.368%，2.976%，3.031%。 第五章 1.假设A公司股票目前的市价为每股20元。用15 000自有资金加上从经纪人处借入的5000元保证金贷款买入了1000股A股票。贷款年利率为6%。 （1）如果A股票价格立即变为①22元，②20元，③18元，在经纪人账户上的净值会变动多少百分比？ （2）如果维持保证金比率为25%，A股票的价格跌到多少才会收到追缴保证金通知？ （3）如果购买时只用了10 000元自有资金，那么第（2）的答案会有何变化？ （4）假设该公司未支付现金红利。一年以后，如果A股票价格变为①22元，②20元， ③18元，投资收益率为多少？投资收益率与该股票股价变动的百分比有何关 系？ 解答： 原来的账户上的净值为15 000元， （1）若股价升到22元，则净值增加2000元，上升了13.33%； 若股价维持在20元，则净值不变； 若股价跌到18元，则净值减少20元，下降了13.33%， （2）设令经纪人发出追缴保证通知时的价位为X，则 （1000X-5000）/1000X=25% X=6.67元 （3）（1000X-10000）/1000X=25% X=13.33元 （4）一年以后保证金贷款本息和为5000×1.06=5300元 若股价升到22元，则投资收益率为 （1000×22-5300-15000）/15000=11.33% 若股价维持在20元，则投资收益率为 （1000×20-5300-15000）/15000=-2% 若股价跌到18元，则投资收益率为 （1000×18-5300-15000）/15000=-15.33% 投资收益率与股价变动的百分比的关系如下：
金融市场学试题及答案 第一章金融市场概论 名词解释 1．货币市场：指以期限在1年以内的金融工具为交易对象的短期金融市场。其主要功能是保持金融工具的流动性，以便随时将金融工具转换成现实的货币。 2．资本市场：是指以期限在1年以上的金融工具为交易对象的中长期金融市场。一般来说，资本市场包括两个部分：一是银行中长期存贷款市场，二是有价证券市场。但人们通常将资本市场等同于证券市场。 3．保险市场：是指从事因意外灾害事故所造成的财产和人身损失的补偿，以保险单和年金单的发行和转让为交易对象的、一种特殊形式的金融市场。 4．金融衍生工具：是在原生金融工具基础上派生出来的金融工具，包括金融期货、金融期权、金融互换、金融远期等。衍生金融工具的价格以原生金融工具的价格为基础，主要功能在于管理与原生金融工具紧密相关的金融风险。 5．完美市场：是指在这个市场上进行交易的成本接近或等于零，所有的市场参与者都是价格的接受者。在这个市场上，任何力量都不对金融工具的交易及其价格进行干预和控制，任由交易双方通过自由竞争决定交易的所有条件。 单项选择题 1．金融市场被称为国民经济的“晴雨表”，这实际上指的就是金融市场的( D )。A．分配功能B．财富功能C．流动性功能D．反映功能 2．金融市场的宏观经济功能不包括( B )。
A．分配功能B．财富功能C．调节功能D．反映功能 3．金融市场的配置功能不表现在( C )方面。 A．资源的配置B．财富的再分配 C．信息的再分配D．风险的再分配 4．金融工具的收益有两种形式，其中下列哪项收益形式与其他几项不同( D )。A．利息B．股息C．红利D．资本利得 5．一般来说，( B )不影响金融工具的安全性。 A．发行人的信用状况B．金融工具的收益大小 C．发行人的经营状况D．金融工具本身的设计 6．金融市场按( D )划分为货币市场、资本市场、外汇市场、保险市场、衍生金融市场。 A．交易范围B．交易方式C．定价方式D．交易对象 7．( B )是货币市场区别于其他市场的重要特征之一。 A．市场交易频繁B．市场交易量大C．市场交易灵活D．市场交易对象固定 8．( A )一般没有正式的组织，其交易活动不是在特定的场所中集中开展，而是通过电信网络形式完成。 A．货币市场B．资本市场C．外汇市场D．保险市场 多项选择题 1．金融资产通常是指具有现实价格和未来估价，且具有特定权利归属关系的金融工具的总称，简言之，是指以价值形态而存在的资产，具体分为( BCD )。 A．现金资产B．货币资产C．债券资产D．股权资产E．基金资产2．在经济体系中运作的市场基本类型有( ACD )。
2010年1月 金融市场学试题 一、单项选择题(本大题共20小题，每小题1分，共20分) 在每小题列出的四个备选项中只有一个是符合题目要求的，请将其代码填写在题后的 括号内。错选、多选或未选均无分。 1.属于经济周期预测先行指标的是() A.工业产值 B.消费物价指数 C.消费者信心指数 D.失业的平均期限 2.现货交易不包括() B.保证金交易A.现金交易 C.固定方式交易 D.利率互换 3.下列选项中，既可以作为交易所市场的回购抵押品，也可以作为银行间市场的回购抵押 品的是() B.政策性金融债国债A. C.央行票据 D.企业债 4.发行者只对特定的股票发行对象发行股票的方式称为() B.私募发行公募发行A. C.直接发行 D.间接发行 5.影响股票供求关系的市场因素是() A.投资者动向 B.金融形势 C.劳资纠纷 D.财政状况 6.市场价格若没有达到客户所要求的特定价位，则不能成交的订单是() A.到价单 B.市场单 C.限价单 D.收盘单 7.期货交易中，市场风险的防范机制是() A.保证金制度 B.无负债结算制度 C.价格限额 D.实物交割 8.从投资运作的特点出发，可将证券投资基金划分为() A.对冲基金与套汇基金 B.私募基金与公募基金 C.在岸基金与离岸基金 D.股票基金与债券基金 9.国债柜台交易的交割方式为() A.T+0 B.T+1 C.T+2 D.T+3 10.一张15年期，年利率为7.2％，市场买卖价格为800元，票面价值为1000元的债券，其即期收益率为() A.7.2％ B.8％ C.8.5％ D.9％ 11.为谋取现货与期货之间价差变动收益而参与期货市场的交易者是()
《金融市场学》习题答案 习题二答案： 1. b、e、f 2. 略 3. 同传统的定期存款相比，大额可转让定期存单具有以下几点不同： (1) 定期存款记名、不可转让；大额可转让定期存单是不记名的、可以流通转让的。 (2) 定期存款金额不固定，可大可小；大额可转让定期存单金额较大。 (3) 定期存款；利率固定；大额可转让定期存单利率有固定的也有浮动的，且一般高于定期存款利率。 (4) 定期存款可以提前支取，但要损失一部分利息；大额可转让定期存单不能提前支取，但可在二级市场流通转让。 4. 回购利息=1,001,556－1,000,000=1,556RMB 设回购利率为x,则： 1，000，000×x×7/360=1556 解得：x=8% 回购协议利率的确定取决于多种因素，这些因素主要有： (1) 用于回购的证券的质地。证券的信用度越高，流动性越强，回购利率就越低，否则，利率相对来说就会高一些。 (2) 回购期限的长短。一般来说，期限越长，由于不确定因素越多，因而利率也应高一些。但这并不是一定的，实际上利率是可以随时调整的。 (3) 交割的条件。如果采用实物交割的方式，回购利率就会较低，如果采用其他交割方式，则利率就会相对高一些。 (4) 货币市场其他子市场的利率水平。它一般是参照同业拆借市场利率而确定的。 5．贴现收益率为：[ (100-98.01) /100]×360/316=2.27% 真实年收益率为：[1+ (100-98.01) /98.01]365/316－1=2.35% 债券等价收益率为：[(100-98.01)/98.01] ×365/316=2.35% 6．平均收益率=2.91%*35%+3.2%*25%+3.85%*15%+3%*12.5%+2.78%*12.5%=3.12% 习题三答案 一、计算题 1．（1）从理论上说，可能的损失是无限的，损失的金额随着X股票价格的上升而增加。 （2）当股价上升超过22元时，停止损失买进委托就会变成市价买进委托，因此最大损失就是2 000元左右。 2．（1）该委托将按最有利的限价卖出委托价格，即40.25美元成交。 （2）下一个市价买进委托将按41.50美元成交。 （3）我将增加该股票的存货。因为该股票在40美元以下有较多的买盘，意味着下跌风险较小。 相反，卖压较轻。 3．你原来在账户上的净值为15 000元。 （1）若股价升到22元，则净值增加2000元，上升了13.33%； 若股价维持在20元，则净值不变； 若股价跌到18元，则净值减少2000元，下降了13.33%。 （2）令经纪人发出追缴保证金通知时的价位为X，则X满足下式： （1000X-5000）/1000X=25% ：自己的 所以X=6.67元。 （3）此时X要满足下式： （1000X-10000）/1000X=25% 所以X=13.33元。 （4）一年以后保证金贷款的本息和为5000×1.06=5300元。 若股价升到22元，则投资收益率为： （1000×22-5300-15000）/15000=11.33%：净盈利 若股价维持在20元，则投资收益率为： （1000×20-5300-15000）/15000=-2% 若股价跌到18元，则投资收益率为： （1000×18-5300-15000）/15000=-15.33% 投资收益率与股价变动的百分比的关系如下： 投资收益率=股价变动率×投资总额/投资者原有净值－利率×所借资金/投资者原有净值4．你原来在账户上的净值为15 000元。 （1）若股价升到22元，则净值减少2000元，投资收益率为-13.33%； 若股价维持在20元，则净值不变，投资收益率为0；
金 融 市 场 学 模 拟 试 题 、单项选择题（本大题共 20小题，每小题1分，共20 分） 在每小题列出的四个备选项中只有一个是符合题目要求的， 请将其代码填写在题后的括 号内。错选、多选或未选均无分。 1 ?金融市场以（）为交易对象。 A.实物资产 B.货币资产 C.金融资产D ?无形资产 2?上海黄金交易所于 正式开业。（） A. 1990 年 12 月 B . 1991 年 6 月 C . 2001 年 10 月 3. 证券交易所的组织形式中，不以盈利为目的的是 A.公司制 B .会员制 C.审批制 D .许可制 4. 一般说来，金融工具的流动性与偿还期 （ ） A.成正比关系 B .成反比关系 C .成线性关系 D .无确定关系 5. 下列关于普通股和优先股的股东权益，不正确的是 （ ） A.普通股股东享有公司的经营参与权 B.优先股股东一般不享有公司的经营参与权 C.普通股股东不可退股 D.优先股股东不可要求公司赎回股票 6. 以下三种证券投资，风险从大到小排序正确的是 （ ） A.股票，基金，债券 B .股票，债券，基金 C.基金，股票，债券 D .基金，债券，股票 7. 银行向客户收妥款项后签发给客户办理转账结算或支取现金的票据是 （ ） A.银行本票B .商业本票C.商业承兑汇票 D .银行承兑汇票 8货币市场的主要功能是（） A.短期资金融通 B .长期资金融通 D . 2002 年 10 月
A.系统风险 B ?非系统风险C.信用风险 D .市场风险C.套期保值 D ?投机 9.债务人不履行合约，不按期归还本金的风险是
10 ?中央银行参与货币市场的主要目的是 （ ） A.实现货币政策目标 B ?进行短期融资C.实现合理投资组合 11?在物价下跌的条件下，要保持实际利率不变，应把名义利率 A.保持不变B ?与实际利率对应 C.调高 D ?调低 12. 世界五大黄金市场不包括 （ ） A.伦敦 B .纽约C .东京 D .香港 13. 在我国，可直接进入股票市场的金融机构是 （） A.证券市场B .商业银行C.政策性银行 D .财务公司 14. 股票发行方式按是否通过金融中介机构推销，可分为 （ A.公募发行和私募发行 B .直接发行和间接发行 C.场内发行和场外发行 15. 我国上海、深圳证券交易所股票交易的“一手”为 （） A. 10 股 B . 50 股 C. 100 股 D . 1000 股 16. 专门接受佣金经纪人的再委托，代为买卖并收取一定佣金的是 （ 20. 关于期权交易双方的风险，正确的是 （ ） A.买方损失有限，收益无限 B .卖方损失有限，收益无限 C.买方收益有限，损失无限 D .取得佣金收入 （ ） D .招标发行和非招标发行 A.专业经纪人B .专家经纪人C.零股交易商 D ?交易厅交易商 17. 我 国上市债券以___交易方式为主。（ ） 18. 我国外汇汇率采用的标价法是 （） A.直接标价法B .间接标价法C.美元标价法 D .直接标价和间接标价法相结合 A. —级市场和二级市场 B .直接市场和间接市场 C.现货市场和期货市场 D ?官方市场和黑市 D .卖方
一、名词解释 股票行市：是指股票在流通市场上买卖的价格。 佣金经纪人：是指接受客户委托，在证券交易所内代理客户买卖有价证券，并按固定比例收取佣金的经纪人。 套利交易：外汇交易的方式之一。是指利用不同国家和地区短期利率的差异，将资金由利率低的国家和地区转移到利率较高的国家和地区进行投放，从中获取利息差额收益。套利交易依利率差异的存在而存在。 金融工具：又称信用工具，指表示债权、债务关系的有价证券或凭证，是具有法律关系的契约 违约风险：又称倒帐风险，是指债券发行公司于债券到期前无法支付利息或到期时无法偿还本金的可能性。通常政府发行的债券无违约风险，这种风险只存在于公司债券中。 票据：是指出票人自己承诺或委托付款人，在指定日期或见票时，无条件支付一定金额并可流通转让的有价证券。票据是国际通用的信用和结算工具，有汇票、本票和支票之分。封闭型投资基金：开放型投资基金的对称，是 指基金规模在发行前便已确定，在发行完毕后 和规定的期限内，基金规模固定不变的投资基 金。 篮筹股：又称热门股，是指那些规模庞大、经 营良好、收益丰厚的大公司发行的股票。 货币头寸：又称现金头寸，是指商业银行每日 收支相抵后，资金过剩或不足的数量，它是同 业拆借市场的重要交易工具。 期货市场：是指交易协议虽然已经达成，交割却要在某一特定时间进行的市场。 开放型基金一—又称开放型投资基金，是封闭式投资基金的对称。是指原则上只发 行一种基金单位，发行在外的基金单位或受益凭证没有数额限制，可以根据实际需要和经营策略随时增加或减少的投资基金。 专家经纪人——即佣金经纪人的经纪人。 回购协议：是指证券的持有人在山售证券时，与证券的购买商签定协议，约定在一定期限后按原定价格或约定价格购回所卖证券，从而获取即时可用资金的一种交易行为。从本质上说，回购协议是一种抵押贷款，其抵押品为证券。 基金证券：义称投资基金证券，是指由投资基金发起人向社会公众公开发行，证明持有人按其所持份额享有资产所有权、资产收益权和剩余财产分配权的有价证券。 二、判断正误并说明原因 2．由于各国金融市场的发达程度不同，因此，市场本身的构成要素也就不同。
金融市场学 习题二答案 1.b、e、f 2.略 3.同传统的定期存款相比，大额可转让定期存单具有以下几点不同： （1）定期存款记名、不可转让；大额可转让定期存单是不记名的、可以流通转让的。（2）定期存款金额不固定，可大可小；大额可转让定期存单金额较大。 （3）定期存款；利率固定；大额可转让定期存单利率有固定的也有浮动的，且一般高于定期存款利率。 （4）定期存款可以提前支取，但要损失一部分利息；大额可转让定期存单不能提前支取，但可在二级市场流通转让。 4.回购利息=1,001,556－1,000,000=1,556RMB 设回购利率为x,则： 1,000,000×x×7/360=1556 解得：x=8% 回购协议利率的确定取决于多种因素，这些因素主要有： （1）用于回购的证券的质地。证券的信用度越高，流动性越强，回购利率就越低，否则，利率相对来说就会高一些。 （2）回购期限的长短。一般来说，期限越长，由于不确定因素越多，因而利率也应高一些。但这并不是一定的，实际上利率是可以随时调整的。 （3）交割的条件。如果采用实物交割的方式，回购利率就会较低，如果采用其他交割方式，则利率就会相对高一些。 （4）货币市场其他子市场的利率水平。它一般是参照同业拆借市场利率而确定的。 5.贴现收益率为：[（100-98.01）/100]×360/316=2.27% 真实年收益率为：[1+（100-98.01）/98.01]365/316－1=2.35% 债券等价收益率为：[（100-98.01）/98.01] ×365/316=2.35% 6.平均收益率=2.91%*35%+3.2%*25%+3.85%*15%+3%*12.5%+2.78%*12.5%=3.12% 习题三答案 1.（1）从理论上说，可能的损失是无限的，损失的金额随着X股票价格的上升而增加。（2）当股价上升超过22元时，停止损失买进委托就会变成市价买进委托，因此最大损失就是2 000元左右。 2.（1）该委托将按最有利的限价卖出委托价格，即40.25美元成交。 （2）下一个市价买进委托将按41.50美元成交。 （3）我将增加该股票的存货。因为该股票在40美元以下有较多的买盘，意味着下跌风险较小。相反，卖压较轻。 3.你原来在账户上的净值为15 000元。
金融市场学模拟试题一 一、单项选择题（本大题共20小题，每小题1分，共20分） 在每小题列出的四个备选项中只有一个是符合题目要求的，请将其代码填写在题后的括号内。错选、多选或未选均无分。 1．金融市场以( C)为交易对象。 A．实物资产B．货币资产C．金融资产 D．无形资产 2．上海黄金交易所于正式开业。( D ) A．1990年12月 B．1991年6月 C．2001年10月D．2002年10月 3．证券交易所的组织形式中，不以盈利为目的的是 ( B ) A．公司制B．会员制C．审批制 D．许可制 4．一般说来，金融工具的流动性与偿还期 ( B ) A．成正比关系 B．成反比关系 C．成线性关系 D．无确定关系 5．下列关于普通股和优先股的股东权益，不正确的是 ( C ) A．普通股股东享有公司的经营参与权B．优先股股东一般不享有公司的经营参与权 C．普通股股东不可退股D．优先股股东不可要求公司赎回股票 6．以下三种证券投资，风险从大到小排序正确的是 ( A ) A．股票，基金，债券 B．股票，债券，基金 C．基金，股票，债券 D．基金，债券，股票 7．银行向客户收妥款项后签发给客户办理转账结算或支取现金的票据是 ( ） A．银行本票 B．商业本票C．商业承兑汇票 D．银行承兑汇票 8．货币市场的主要功能是(A ） A．短期资金融通 B．长期资金融通 C．套期保值 D．投机
9．债务人不履行合约，不按期归还本金的风险是( ） A．系统风险 B．非系统风险C．信用风险 D．市场风险 10．中央银行参与货币市场的主要目的是 ( ) A．实现货币政策目标 B．进行短期融资C．实现合理投资组合 D．取得佣金收入 11．在物价下跌的条件下，要保持实际利率不变，应把名义利率 ( ) A．保持不变 B．与实际利率对应C．调高D．调低 12．世界五大黄金市场不包括 ( ) A．伦敦 B．纽约C．东京 D．香港 13．在我国，可直接进入股票市场的金融机构是( ) A．证券市场 B．商业银行C．政策性银行 D．财务公司 14．股票发行方式按是否通过金融中介机构推销，可分为 ( ) A．公募发行和私募发行B．直接发行和间接发行C．场内发行和场外发行 D．招标发行和非招标发行15．我国上海、深圳证券交易所股票交易的“一手”为 ( ) A．10股 B．50股C．100股 D．1000股 16．专门接受佣金经纪人的再委托，代为买卖并收取一定佣金的是 ( ) A．专业经纪人 B．专家经纪人C．零股交易商 D．交易厅交易商 17．我国上市债券以___交易方式为主。 ( ) A．现货 B．期货C．期权 D．回购协议 18．我国外汇汇率采用的标价法是 ( ) A．直接标价法 B．间接标价法C．美元标价法 D．直接标价和间接标价法相结合 19．黄金市场按交易类型和交易方式可分为 ( ) A．一级市场和二级市场 B．直接市场和间接市场C．现货市场和期货市场 D．官方市场和黑市
金融市场学第一套试卷 总分：100 考试时间：100分钟 1、按照交易程序不同，金融市场可分为(答题答案：C) A、货币市场和资本市场 B、现货市场和期货市场 C、发行市场和流通市场 D、有形市场和无形市场 2、直接融资的主要形式是(答题答案：C) A、银行信贷 B、商业票据 C、股票与债券 D、基金 3、金融机构之间发生的短期临时性资金借贷活动，叫做(答题答案：D) A、再贷款 B、转贷款 C、转贴现 D、同业拆借 4、正回购方所质押证券的所有权真正让渡给逆回购方的回购协议属于(答题答案：C) A、正回购 B、逆回购 C、封闭式回购 D、开放式回购 5、下列资产中通胀风险最大的是(答题答案：A) A、股票 B、固定收益证券 C、房地产 D、汽车 6、以低于面值的价格发行，到期按面值偿还的是(答题答案：C) A、息票债券 B、利随本清债券 C、贴现债券 D、可赎回债券 7、客户向经纪人支付一定的现款或股票作为保证金，差额部分由经纪人垫付的交易方式称为(答题答案：B)
A、现货交易 B、信用交易 C、期货交易 D、期权交易 8、属于长期政府债券的是(答题答案：B) A、国库券 B、公债 C、央行票据 D、回购协议 9、公开对社会广大投资者发行证券的发行方式称为(答题答案：D) A、直接发行 B、间接发行 C、私募发行 D、公募发行 10、我国发行股票时不允许(答题答案：D) A、平价发行 B、溢价发行 C、折价发行 D、以上都不对 11、证券交易所的交易采取(答题答案：C) A、公司制 B、会员制 C、经纪制 D、承销制 12、开放式基金特有的风险是(答题答案：A) A、巨额赎回风险 B、市场风险 C、管理风险 D、技术风险 13、下列不属于证券投资基金收益来源的是(答题答案：D) A、股票红利 B、债券利息 C、资本利得 D、承销证券收入 14、根据募集方式不同，证券投资基金分为(答题答案：C) A、公司型基金与契约型基金 B、封闭式基金与开放式基金 C、公募基金与私募基金 D、股票型基金与债券型基金 15、目前世界最大黄金市场是(答题答案：A) A、伦敦黄金市场 B、苏黎世黄金市场 C、香港黄金市场 D、美国黄金市场
金融市场学练习题 （一）计算题 1.一张政府发行的面值为1000元的短期债券，某投资人以950元的价格购买，期限为90天，计算该债券的利率和投资人的收益率。 答：（1）短期债券利率=（面值—市值）／面值×（360／到期天数） =（1000—950）／1000×（360／90）=20% （2）短期债券收益率=（面值—市值）／市值×（360／到期天数） =（1000—950）／950×（360／90）=21.1% 2.3个月贴现式商业票据价格为97.64元，6个月贴现式商业票据价格为95.39元，两者的面值都是100元。请问哪个商业票据的年收益率较高？ 答：令3个月和6个月贴现式商业票据的年收益率分别为r 3和r 6 ，则 1+r 3 =(100/97.64)4=1.1002 1+r 6 =(100/95.39)2=1.0990 求得r 3=10.02%，r 6 =9.90%。所以3个月贴现式商业票据的年收益率较高。 3.美国政府发行一只10年期的国债，债券面值为1000美元，息票的年利率为9%，每半年支付一次利息，假设必要收益率为8%，则债券的内在价值为多少？ 答：V=∑ =+ 20 1 ) 04 .0 1( 45 t t + 20 ) 04 .0 1( 1000 + =1067.96（美元） 上式中，C/2=45,y/2=4%,2*n=20 4.假设影响投资收益率的只有一个因素，A、B两个市场组合都是充分分散的，其期望收益率分别为13%和8%，β值分别等于1.3和0.6。请问无风险利率应等于多少？ 答：令RP表示风险溢价,则APT可以写为: 13%=r f +1.3RP 8%=r f +0.6RP 解得r f =3.71% 5.现有一张面值为100元、期限8年、票面利率7%、每半年支付一次利息的债券，该债券当前市场价格为94.17元，（根据已知条件，该债券每半年的利息为3.5元，以半年为单位的期限变为16）计算该债券的到期年收益率是多少？ 答：94.17=∑ =+ 16 1 ) 1( 5.3 t t YTM + 16 ) 1( 1000 YTM + 得出半年到期收益率为4%，年到期收益率为8%。 6.假设投资组合由两个股票A和B组成。它们的预期回报分别为10%和15%，标准差为20%和28%，权重40%和60%。已知A和B的相关系数为0.30，无风险利率为5%。求资本市场线的方程。 答：我们只要算出市场组合的预期收益率和标准差就可以写出资本市场线。 市场组合预期收益率为:10%*40%+15%*60%=13% 市场组合的标准差为: (0.42*20%2+0.62*28%2+2*0.4*0.6*0.3*20%*28%)0.5=20.66% 因此资本市场线=5%+[(13%-5%)/20.66%]=5%+0.3872 7.某投资者以98500元的价格购买了一份期限为95天、面值合计为100000元
《金融市场学》试题及答案（一） 第1题: 短期证券经纪人可以从转期经营中荻取收益，所谓“转期”是指( )，全选 第2题: 证券交易所是一个有组织的买卖证券的公开市场，其基本特点表现在(自身并不持有和买卖证券-----；交易采用经纪制) 第3题: 大多数国家同业拆借市场的相同之处是(信用拆借为主；有形市场为主；银行间拆借为主)。 第4题: 一般参与银行承兑汇票贴现市场的交易者有(商业银行；非银行金融机构；工商企业) 第5题: 以下表述股票发行市场与流通市场关系错误的是(发行市场是基础；没有发行市场，就不会有流通市场；流通市场对发行市场有推动作用)． 第6题: 外汇市场的运行机制包括(汇率、供求、效率)。 第7题: 银行承兑汇票——是由出票人开立一张远期汇票，以银行作为付款人，命令其在确定的将来日期支付一定金额给收款人。√ 第8题: 场外交易——是指具有准人资格的金融机构之间进行临时性资金融通的市场。√第9题: 公司型投资基金——是指具有共同投资目标的投资者，依据公司法组成以盈利为目的，投资于特定对象的股份制投资公司。√ 第10题: 金融期货——是相对于商品期货而言，是指一种法律上具有约束力的和约，它规定所买卖的金融商品的品种、数额，井约定在将来某个日期按已协议的价格进行交割．√ 第11题: 金融衍生品——又称衍生性金融工具或衍生性金融商品，是指在基础性金融工具如股票、债券、外汇、利率等的基础上，衍生出来的金融工具或金融商品。√ 第12题: 议价市场和店头市场的买卖活动都是通过双方议价成交，因此，两个市场没有什么本质区别。× 第13题: 二十世纪80年代以来，西方国家对金融市场的监督管理出现了“放松管制”的较大转变。放松管制并非不要监管，只是监管的松紧程度及监管手段发生了变化。√ 第14题: 票据虽有本票、汇票、支票之分，但需要承兑的票据却只有汇票一种。√ 第15题: 即使在金融市场发达国家，次级市场流通的证券也只占整个金融工具的2／3，这说明次级市场的重要性不如初级市场。× 第16题: 外汇经纪人存在的根本原因在于外汇汇率的频繁波动。√ 第17题: 篮筹股：又称热门股，是指那些规模庞大、经营良好、收益丰厚的大公司发行的股票。√ 第18题: 套汇交易：是指利用两个或两个以上外汇市场上某些货币的汇率差异进行外汇买卖，从中套取差价利润的交易方式。√ 第19题: 货币头寸：又称现金头寸，是指商业银行每日收支相抵后，资金过剩或不足的数量，它是同业拆借市场的重要交易工具。√ 第20题: 期货市场：是指交易协议虽然已经达成，交割却要在某一特定时间进行的市场。√ 第21题: 世界上最早的证券交易所是(荷兰)。 第22题: 票据是一种无因证券，这里的“因”是指(产生票据权利义务关系的原因)。 第23题: 在欧美各国，证券承销人多为(投资银行)。 第24题: 从商人银行的产生发展看，其最传统的业务是(票据承兑)。 第25题: 专门在货币市场上开展业务的非银行金融机构被称之为(财务公司)。
2020金融市场学模拟试题及答案 金融市场学模拟试题一 一、单项选择题（本大题共20小题，每小题1分，共20分）在每小题列出的四个备选项中只有一个是符合题目要求的，请将其代码填写在题后的括号内。错选、多选或未选均无分。1．金融市场以()为交易对象。 A．实物资产B．货币资产C．金融资产D．无形资产 2．上海黄金交易所于正式开业。() A．1990年12月B．1991年6月C．2001年10月D．2002年10月 3．证券交易所的组织形式中，不以盈利为目的的是() A．公司制B．会员制C．审批制D．许可制 4．一般说来，金融工具的流动性与偿还期() A．成正比关系B．成反比关系C．成线性关系D．无确定关系5．下列关于普通股和优先股的股东权益，不正确的是() A．普通股股东享有公司的经营参与权B．优先股股东一般不享有公司的经营参与权 C．普通股股东不可退股D．优先股股东不可要求公司赎回股票6．以下三种证券投资，风险从大到小排序正确的是() A．股票，基金，债券B．股票，债券，基金 C．基金，股票，债券D．基金，债券，股票 7．银行向客户收妥款项后签发给客户办理转账结算或支取现金
的票据是(） A．银行本票B．商业本票C．商业承兑汇票D．银行承兑汇票8．货币市场的主要功能是(） A．短期资金融通B．长期资金融通 C．套期保值D．投机 9．债务人不履行合约，不按期归还本金的风险是(） A．系统风险B．非系统风险C．信用风险D．市场风险 10．中央银行参与货币市场的主要目的是() A．实现货币政策目标B．进行短期融资C．实现合理投资组合D．取得佣金收入 11．在物价下跌的条件下，要保持实际利率不变，应把名义利率() A．保持不变B．与实际利率对应C．调高D．调低 12．世界五大黄金市场不包括() A．伦敦B．纽约C．东京D．香港 13．在我国，可直接进入股票市场的金融机构是() A．证券市场B．商业银行C．政策性银行D．财务公司 14．股票发行方式按是否通过金融中介机构推销，可分为() A．公募发行和私募发行B．直接发行和间接发行C．场内发行和场外发行D．招标发行和非招标发行15．我国上海、深圳证券交易所股票交易的“一手”为() A．10股B．50股C．100股D．1000股
北语2012年金融市场学模拟试卷答案五套
《金融市场学》模拟试卷一 一、【单项选择题】1、金融市场上的（ D ）剧烈波动，吸引了更多的投资者。 [A] 利润 [B] 利润率 [C] 收入 [D] 价格 2、金融市场的主体．是指（ C ）。 [A] 金融工具 [B] 金融中介机构 [C] 金融市场的交易者 [D] 金融市场价格 3、商业银行或其他金融机构以其持有的未到期汇票向中央银行所做的票据转让行为，称之为（ B ）。 [A] 贴现 [B] 再贴现 [C] 转贴现 [D] 承兑 4、大户操作者将某类股价炒高后，发现再炒高的幅度有限，乘机卖出，转而炒作他类行情尚未波动的股票，称作（ C ）。[A] 转帐 [B] 烘托 [C] 轮做 [D] 轧空 5、银行汇票是指（ C ）。 [A] 银行收受汇票 [B] 银行承兑的汇票 [C] 银行签发的汇票 [D] 银行贴现的汇票 6、再贴现是（ B ）。 [A] 中央银行的负债业务 [B] 中央银行的授信业务 [C] 中央银行的资产业务 [D] 商业银行的授信业务 7、短期国债的典型发行方式是（ C ）方式。 [A] 公募发行 [B] 拍卖投标发行[C] 拍卖 [D] 推销人员推销 8、一般说来，发行量大的大公司企业宜用（ D ）的方式发行，对发行人来说较简单，在费用上体现规模经济。[A] 私募 [B] 公募 [C] 直接公募 [D] 间接公募 9、股票行市的最大特点是（ C ）。 [A] 收益高 [B] 风险大[C] 波动性较强 [D] 变幻莫测 10、票据是一种无因债权证券，这里的“因”是指（ A ）。 [A] 产生票据权利义务关系的原因[B] 票据产生的原因 [C] 票据转让的原因[D] 发行票据在法律上无效或有瑕疵的原因 二、【多项选择题】11、我国金融市场的要素（ AC ） [A] 种类少 [B] 种类多 [C] 规模小 [D] 规模大 12、财务公司作为非银行金融机构，其主要业务是（ BC ） [A] 办理票据承兑[B] 向企业发放抵押贷款[C] 向消费者发放消费贷款[D] 向企业发放长期贷款 13、场外交易的参与者主要有（ ABC ） [A] 证券商 [B] 股票出售者[C] 股票购入者 [D] 银行机构 14、场外交易的主要形式有（ AC ） A．柜台交易 B．垫头交易C．第三市场交易D．现货交易 15、外汇市场的主要参与者包括（ ABC ）A．商业银行B．中央银行及政府主管外汇机构C．外汇经纪人和交易商D．外汇的实际供应者和需求者 三、【名词解释】16、货币市场指进行短期资金融通的市场。其交易工具是1年及1年以内的票据和有价证劵，这些金融工具具有准货币的性质，流动性大，安全性强，但收益较低。17、外汇指以外国货币表示的，在国际结算中被普遍接受的支付手段。外汇的范围包括：可兑换的外国货币、外币有价证劵、外汇支付凭证、外币存款凭证等。 18、证券公司指专门从事有价证券买卖的法人企业。分为证券经营公司和证券登记公司。狭义的证券公司是指证券经营公司，是经主管机关批准并到有关工商行政管理局领取营业执照后专门经营证券业务的机构。它具有证券交易所的会员资格，可以承销发行、自营买卖或自营兼代理买卖证券。 19、优先股指与其他种类的股票相比在公司盈利和剩余财产的分配上享有优先权的股票。 20、金融工具指证明债权债务关系并据以进行货币资金交易的合法凭证。这种工具必须具备规范化的书面格式、广泛的社会可接受性和可转让性以及法律效力。 四、【简答题】21、简述债券的交易方式。 1.现货交易方式。是指交易双方在成交后立即交割或在极短的期限内交割的交易方式。 2.信用交易。又称保证金交易或垫头交易，是指交易人凭自己的信誉，通过交纳一定数额的保证金取得经纪人信任，进行债券买卖的交易方式。 3.回购交易。是指卖((或买入)债券的同时，约定到一定的时间后以规定的价格再买回(或卖出)这笔债券，实际上就是附有购回(或卖出)条件的债券买卖。 4.期货交易。是指交易双方约定在将来某个时候按成交时约定的条件进行交割的交易方式。 5.期权交易。期权是指持有期权者可在规定的时间里，按双方约定的价格，购买或出售一定规格的金融资产的权利。 22、简述股票公开发行的基本条件。
??????????????????????精品自学考料推荐?????????????????? 全国 2018 年 10 月高等教育自学考试 金融市场学试题 课程代码： 00077 一、单项选择题 (本大题共20 小题，每小题 1 分，共20 分) 在每小题列出的四个备选项中只有一个是符合题目要求的，请将其代码填写在题干的括号内。错选、多选或未选均无分。 1.金融市场的各种交易工具有一些共同的性质，下列不是．．它们共同的性质的是 ( ) A. 规范的书面格式 B. 广泛的社会可接受性或可转让性 C.有明确标示的货币价格 D. 具有法律效力 2.下列由于具有较高的流动性而被称为“准货币”的是( ) A. 银行承兑汇票 B. 政府债券 C.银行存款 D. 国库券 3.被称为“人民币特种股票”的是( ) A.H 股 B.A 股 C.B 股 D.蓝筹股 4.以下不是新加坡黄金市场特点的是( ) ．． A. 昼夜服务 B. 倾向于经营批发交易 C.手续费低 D.对非当地居民在新加坡的黄金存款免征遗产税 5.以下交易所最先开展了利率期货交易的是( ) A. 美国芝加哥商品交易所 B. 伦敦国际金融期货交易所 C.英国皇家交易所 D. 东京利率期货交易所 6.债券收益性与偿还期、流动性、风险性的关系可表述为( ) A.收益性与偿还期成正比，与流动性、风险性成反比 B.收益性与偿还期、流动性成正比，与风险性成反比 C.收益性与偿还期、风险性成正比，与流动性成反比 D.收益性与偿还期、流动性成反比，与风险性成正比 7.证券经纪商的收入来源是( ) A. 买卖价差 B. 佣金 C.股利和利息 D. 税金 8.股份公司向股东送股体现了资本增殖收益，这种送股的资金来源是( ) A. 公积金 B. 税后利润 C.借人资金 D. 社会闲置资金 9.金融期货与金融期权最根本的区别在于( ) A. 收费不同 B. 收益不同 C.权利和义务的对称性不同 D. 交易方式不同 10.以银行金融机构为中介进行的融资活动场所是( ) A. 直接融资市场 B. 间接融资市场 C.资本市场 D. 货币市场 1
一、单项选择题 1.金融市场交易的对象是（） A.资本 B金融资产 C.劳动力 D.土地与房屋 2.金融市场各种运行机制中最主要的是（） A.发行机制 B.交易机制 C.价格机制 D.监督机制 3.企业通过发行债券和股票等筹集资金主要体现的是金融市场的（） A．聚敛功能 B.配置功能 C.调节功能 D.反映功能 4.非居民间从事国际金融交易的市场是（） A.到岸金融市场 B.离岸金融市场 C.非居民金融市场 D.金融黑市 5.同业拆借资金的期限一般为（） A.1天 B.7天 C . 3个月 D. 2年 6.一市政债券息票率6.75%，以面值出售；一纳税人的应税等级为34%，该债券所提供的应税等价收益为（） A. 4.5% B.10.2% C.13.4% D.19.9% 7.最能准确概况欧洲美元特点的是（） A.存在欧洲银行的美元 B.存在美国的外国银行分行的美元 C.存在外国银行和在美国国土外的美国银行的美元 D.存在美国的美国银行的美元 8.短期市政债券当期收益率为4%，而同类应税债券的当期收益率为5%。投资者的税收等级分别为以下数值时，能给予投资者更高税后收益的是（） A.0 B.10% C.20% D.30% 9.最早发行大额可转让定期存单是（） A 汇丰银行 B 中国银行 C 花旗银行 D 巴林银行 10.国库券和BAA级公司债券收益率差距会变大的情形（） A 利率降低 B 经济不稳定 C 信用下降 D 以上均可 11.以折价方式卖出债券的情形是（） A 债券息票率大于当期收益率，也大于债券的到期收益率 B债券息票率等于当期收益率，也等于债券的到期收益率 C债券息票率小于当期收益率，也小于债券的到期收益率 D债券息票率小于当期收益率，也大于债券的到期收益率 12.一份10 000元面值的10年期国债每半年付息一次，该国债的年息票率6%，投资者在第5年末会收到（） A 300元 B 600元 C 3 000元 D 6 000元 13.关于政府机构债券说法不正确的是（） A 以信誉为保证，无需抵押品 B 债券由中央银行作后盾 C 债券的收支偿付列入政府的预算 D 财政部和一些政府机构可发行 14.最适合被证券化的是（） A 企业的信用贷款 B 一般的房地产抵押贷款 C 住房抵押贷款 D 企业的担保贷款 15.一家公司的销售额和利润都快速地增长，且其速度要远远快于整个国家以及其所在的行业的发展速度，那么这家公司发行的股票属于（） A 蓝筹股 B 投机股 C 成长股 D 收入股