金融市場(chǎng)習(xí)題

1、Malhazard:Theriskthatonepartytoatransactionwillengageinbehavithatisundesirablefromtheotherparty’spointofview.Yieldtomaturity:Theinterestratethatequatesthepresentvalueofpaymentsreceivedfromacreditmarketinstrumentwithitsva

2、luetoday.Optioncontracts:Contractsthatgivethepurchasertheoptiontobuyselltheunderlyingfinancialinstrumentataspecifiedpricecalledtheexercisepricestrikepricewithinaspecificperiodoftime.Capitalmarket:Afinancialmarketinwhichl

3、ongertermdebt(maturityofgreaterthanoneyear)equityinstrumentsaretraded.IfthereisadeclineininterestrateswhichwouldyouratherbeholdinglongtermbondsshttermbondsWhyWhichtypeofbondhasthegreaterinterestrateriskYouwouldratherbeho

4、ldinglongtermbondsbecausetheirpricewouldincreasemethanthepriceoftheshttermbondsgivingthemahigherreturn.WhateffectwillasuddenincreaseinthevolatilityofgoldpriceshaveoninterestratesInterestrateswouldrise.Asuddenincreaseinpe

5、ople’sexpectationsoffuturerealestatepricesraisestheexpectedreturnonrealestaterelativetobondssothedemfbondsfalls.ThedemcurveBdshiftstothelefttheequilibriuminterestraterises.WhatacteristicsdefinethemoneymarketsThemoneymark

6、etscanbeacterizedashavingsecuritiesthattradeinoneyearlessareoflargedenominationareveryliquid.1.WhyarefinancemarketsimptanttothehealthoftheeconomyBecausetheychannelfundsfromthosewhodonothaveaproductiveusefthemtothosewhodo

7、therebyresultinginhighereconomicefficiency.2.WheninterestraterisehowmightbusinessesconsumerschangetheireconomicbehaviBusinesseswouldcutinvestmentspendingbecausethecostoffinancingthisspendingisnowhigherconsumerswouldbeles

8、slikelytopurchaseahouseacarbecausethecostoffinancingtheirpurchaseishigher.3.HowcanachangeininterestratesaffecttheprofitabilityoffinancialinstitutionsAchangeininterestratesaffectsthecostofacquiringfundsffinancialinstituti

9、onsaswellaschangestheincomeonassetssuchasloansbothofwhichaffectprofits.Inadditionchangesininterestratesaffectthepriceofassetssuchasstockbondsthatthefinancialinstitutionownswhichcanleadtoprofitslosses.4.Iseverybodywseoffw

10、heninterestratesriseNo.Peoplewhobrowtopurchaseahouseacararewseoffbecauseitcoststhemmetofinancetheirpurchasehoweversaversbenefitbecausetheycanearnhigherinterestratesontheirsavings.5.Whateffectmightafallinstockpriceshaveon

11、businessinvestmentThelowerpricefafirm’ssharesmeansthatitcanraiseasmalleramountoffundssoinvestmentinplantequipmentwillfall.6.Whateffectmightariseinstockpriceshaveonconsumers’decisionstospendHigherstockpricesmeanthatconsum

12、ers’wealthishighersotheywillbemelikelytoincreasetheirspending.7.HowdoesadeclineinthevalueofthepoundsterlingaffectBritishconsumersItmakesfeigngoodsmeexpensivesoBritishconsumerswillbuylessfeigngoodsmedomesticgoods.4.Inthen

13、ieenthcenturytheU.S.economybrowedheavilyfromtheBritishtobuildarailroadsystem.WhatwastheprincipaldebtinstrumentusedWhydidthismakebothcountriesbetteroffTheprincipaldebtinstrumentsusedwerefeignbondswhichweresoldinBritainden

14、ominatedinpounds.TheBritishgainedbecausetheywereabletoearnhigherinterestratesasaresultoflendingtoAmericanswhiletheAmericansgainedbecausetheynowhadaccesstocapitaltostartupprofitablebusinessessuchasrailroads.5.“Becausecpat

15、ionsdonotactuallyraiseanyfundsinsecondarymarketstheyarelessimptanttotheeconomythanprimarymarkets.”Comment.Thisstatementisfalse.Pricesinsecondarymarketsdeterminethepricesthatfirmsissuingsecuritiesreceiveinprimarymarkets.I

16、nadditionsecondarymarketsmakesecuritiesmeliquidthuseasiertosellintheprimarymarkets.Therefesecondarymarketsareifanythingmeimptantthanprimarymarkets.6.Ifyoususpectthatacompanywillgobankruptnextyearwhichwouldyouratherholdbo

17、ndsissuedbythecompanyequitiesissuedbythecompanyWhyYouwouldratherholdbondsbecausebondholdersarepaidoffbefeequityholderswhoaretheresidualclaimants.7.Howcantheadverseionproblemexplainwhyyouaremelikelytomakealoantoafamilymem

18、berthantoastrangerBecauseyouknowyourfamilymemberbetterthanastrangeryouknowmeaboutthebrower’shonestypropensityfrisktakingothertraits.Thereislessasymmetricinfmationthanwithastrangerlesslikelihoodofanadverseionproblemwithth

19、eresultthatyouaremelikelytolendtothefamilymember.8.Thinkofoneexampleinwhichyouhavehadtodealwiththeadverseionproblem.9.WhydoloansharkswrylessaboutmalhazardinconnectionwiththeirbrowersthansomeotherlendersdoLoansharkscanthr

20、eatentheirbrowerswithbodilyharmifbrowerstakeactionsthatmightjeopardizepayingofftheloan.Hencebrowersfromaloansharkarelesslikelytoengageinmalhazard.10.Ifyouareanemployerwhatkindsofmalhazardproblemsmightyouwryaboutwithyoure

21、mployeesTheymightnotwkhardenoughwhileyouarenotlookingmaystealcommitfraud.11.IftherewerenoasymmetryintheinfmationthatabrowalenderhadcouldtherestillbemalhazardproblemYesbecauseevenifyouknowthatabroweristakingactionsthatmig

22、htjeopardizepayingofftheloanyoumuststillstopthebrowerfromdoingso.Becausethatmaybecostlyyoumaynotspendthetimeeffttoreducemalhazardsomalhazardremainsaproblem.12.“Inawldwithoutinfmationtransactioncostsfinancialintermediarie

23、swouldnotexist.”IsthisstatementtruefalseuncertainExplainyouranswer.True.Iftherearenoinfmationtransactionscostspeoplecouldmakeloanstoeachotheratnocostwouldthushavenoneedffinancialintermediaries.13.Whymightyoubewillingtoma

24、kealoantoyourneighbbyputtingfundsinasavingsaccountearninga5%interestrateatthebankhavingthebankloanherthefundsata10%interestrateratherthanloanherthefundsyourselfBecausethecostsofmakingtheloantoyourneighbarehigh(legalfeesf

25、eesfacreditchecksoon)youwillprobablynotbeabletoearn5%ontheloanafteryourexpenseseventhoughithasa10%interestrate.Youarebetteroffdepositingyoursavingswithafinancialintermediaryearning5%interest.Inadditionyouarelikelytobearl