55. Which function of an FI reduces transaction and information costs between a corporation and
individual which may encourage a higher rate of savings?
A. Brokerage services.
B. Asset transformation services.
C. Information production services.
D. Money supply management.
E. Administration of the payments mechanism.
56. In its role as a delegated monitor, an FI
A. keeps track of required interest and principal payments on loans it originates.
B. works with financially distressed borrowers in danger of defaulting on their loans.
C. holds portfolios of loans that they continue to service.
D. maintains contact with borrowers to ensure that loan proceeds are utilized for intended purposes.
E. All of the above.
57. Which of the following is NOT a major function of financial intermediaries?
A. Brokerage services.
B. Asset transformation services.
C. Information production.
D. Management of the nation's money supply.
E. Administration of the payments mechanism.
1-11
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
58. Advantages of depositing funds into a typical bank account instead of directly buying corporate
securities include all of the following EXCEPT
A. monitoring done by the bank on your behalf.
B. increased liquidity if funds are needed quickly.
C. increased transactions costs.
D. less price risk when funds are needed.
E. better diversification of deposited funds.
59. Many households place funds with financial institutions because many FI accounts provide
A. lower denominations than other securities.
B. flexible maturities verses other interest-earning securities.
C. better liquidity than directly negotiated debt contracts.
D. less price risk if interest rates change.
E. All of the above.
60. The reason FIs can offer highly liquid, low price-risk contracts to savers while investing in
relatively illiquid and higher risk assets is
A. because diversification allows an FI to predict more accurately the expected returns on its asset portfolio.
B. significant amounts of portfolio risk are diversified away by investing in assets that have correlations between returns that are less than perfectly positive.
C. because individual savers cannot benefit from risk diversification.
D. because FIs have a cost advantage in monitoring their portfolios.
E. All of the above.
1-12
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
61. The federal government has traditionally extended safety nets to DIs consisting of
A. deposit insurance, discount window borrowing, and reserve requirements.
B. deposit insurance and discount window borrowing.
C. deposit insurance, unemployment insurance, and discount window borrowing.
D. deposit insurance, open market operations, and discount window borrowing.
E. deposit insurance protection.
62. The asset transformation function of FIs typically involves
A. receiptof securities through electronic payments systems.
B. altering the liquidity and maturity features of funds sources used to finance the FI's asset portfolio.
C. granting loans to transform funds deficit units into funds surplus units.
D. investing short-term funds in off-balance sheet activities.
E. transferring of funds from one generation to another.
63. Which of the following refers to the possibility that a firm's owners or managers will take actions
contrary to the promises contained in the covenants of the securities the firm issues to raise funds?
A. Liquidity risk.
B. Price risk.
C. Credit risk.
D. Intermediation.
E. Agency costs.
1-13
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
64. Which of the following refers to the term \
A. Creation of a secondary market mature enough to withstand volatility.
B. Overcoming constraints to buying assets imposed by large minimum denomination size.
C. Mismatching the maturities of assets and liabilities.
D. Reducing information costs or imperfections between households and corporations.
E. The transfer of wealth from one generation to the next.
65. Traditionally, regulation of FIs in the U.S. has been
A. minimal, as evidenced by the recent financial crisis.
B. extensive, as a result of the importance of FI to the economy.
C. minimal, because the free market is allowed to allocate financial resources.
D. extensive, because banks have monopoly power.
E. no different from regulation of nonfinancial firms.
66. Depository institutions (DIs) play an important role in the transmission of monetary policy from the
Federal Reserve to the rest of the economy primarily because
A. loans to corporations are part of the money supply.
B. bank loans are highly regulated.
C. savings institutions provide a large amount of credit to finance residential real estate.
D. DI deposits are a major portion of the money supply.
E. U.S. DIs compete with foreign financial institutions.
1-14
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
67. Which of the following measures the difference between the private costs of regulations and the
private benefits of those regulations for the producers of financial services?
A. Capital adequacy.
B. Agency costs.
C. Net regulatory burden.
D. Charter value.
E. Liquidity risk.
68. What is globalization?
A. The process that causes an FI to focus more intensely on their own domestic market.
B. Acceptance of the Federal Reserve as the regulator of the world financial system.
C. Usually refers to the initiation of GLOBEX, a new international financial communications and trading system.
D. The evolution of markets and institutions so that geographic boundaries do not restrict financial transactions.
E. Joint ownership of international electronic payments systems.
69. Negative externalities exist in the depository sector when
A. the fear of DI insolvency leads to bank deposit runs.
B. lending activity is impaired or constrained.
C. there are delays in disbursements from insolvent DIs.
D. banks that are healthy suffer when another bank nears insolvency.
E. All of the above.
1-15
Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
金融风险管理练习选择题1
