CHAPTER1

Which monetary policy action will immediately, directly, and predictably change the
monetary base?

Select one:
a. Discount Rate
b. Open market operation
c. Reserve requirements
d. Taxes
Phản hồi
The correct answer is: Open market operation

Câu hỏi 2
To understand why financial intermediaries exist, we need to understand the role of

Select one:
a. supply and demand
b. debt and equity
c. transactions costs and information costs
d. adverse selection and moral hazard
e. risk and return
Phản hồi
The correct answer is: transactions costs and information costs

Câu hỏi 3
Which of the following is a capital market instrument?

Select one:
a. a six-month certificate of deposit
b. a three-month Treasury bill
c. an agreement for a bank to loan funds directly to a company for nine months
d. a ten-year bond
Phản hồi
The correct answer is: a ten-year bond

Câu hỏi 4
Asymmetric information problems occur in two forms

Select one:
a. systematic risk and unsystematic risk
b. monetary costs and opportunity costs
c. information costs and bargaining costs
d. market failure and transaction failure
e. adverse selection and moral hazard
Phản hồi
The correct answer is: adverse selection and moral hazard

Câu hỏi 5
Which following transaction takes place on the primary market?

Select one:
a. Investors buy bonds via mutual funds
b. Commercial banks sell bonds of other enterprises
c. The Ministry of Finance issued treasury bills
d. Both A, B and C are correct
Phản hồi
The correct answer is: The Ministry of Finance issued treasury bills

Câu hỏi 6
The two fundamental reasons for heavily regulating the financial system are

Select one:
a. strengthening the currency and stabilizing price levels
b. stabilizing inflation and stabilizing interest rates
c. promoting liquidity and eliminating risk
d. promoting exports and protecting consumers
e. protecting consumers and stabilizing the financial system
Phản hồi
The correct answer is: protecting consumers and stabilizing the financial system

Câu hỏi 7
Which of the following is most likely to be described as a depository institution?

Select one:
a. credit unions
b. finance companies
c. insurance companies
d. securities firms
Phản hồi
The correct answer is: credit unions
Câu hỏi 8
Sources of demand for loanable funds – vốn có thể cho vay mượn do not include

Select one:
a. consumer credit purchase
b. government budget deficit
c. business savings
d. business investment
Phản hồi
The correct answer is: business savings

Câu hỏi 9
Capital market is

Select one:
a. An OTC market
b. Place where medium and long-term financial instruments are traded
c. Place where all financial instruments are traded
d. An organized Exchange
Phản hồi
The correct answer is: Place where medium and long-term financial instruments are traded

Câu hỏi 10
Hoàn thành
'Direct financing" means that

Select one:
a. Borrowers borrow directly from lenders
b. No financial institutions are involved
c. No financial markets are involved
d. Investment banks lend directly to other financial institutions
Phản hồi
The correct answer is: Borrowers borrow directly from lenders

CHAPTER 2

Credit (default) risk is likely to be highest for:

Select one:
a. AAA corporate securities
b. BBB corporate securities
c. long-term Treasury securities
d. short-term Treasury securities
Phản hồi
The correct answer is: BBB corporate securities

Câu hỏi 2
Which of the following factors is not part of the risk structure of interest rates?

Select one:
a. Inflation risk
b. Liquidity risk
c. Risk of default
d. Tax consideration
Phản hồi
The correct answer is: Inflation risk

Câu hỏi 3
Which of the following $6.000 face-value securities has the highest yield to maturity?

Select one:
a. A 10 percent coupon bond selling for $6.000
b. A 10 percent coupon bond selling for $5.500
c. A 6 percent coupon bond selling for $6.500
d. A 6 percent coupon bond selling for $6.000
Phản hồi
The correct answer is: A 10 percent coupon bond selling for $5.500

Câu hỏi 4
The two theories of term structure in most direct conflict with each other are

Select one:
a. default premium and tax consideration
b. market segmentation and expectation
c. expectation and liquidity premium
d. liquidity premium and market segmentation
Phản hồi
The correct answer is: market segmentation and expectation

Câu hỏi 5
Descending yield curves usually occur at or near

Select one:
a. the beginning of a recession
b. equilibrium
c. the end of the year
d. the end of a recession
Phản hồi
The correct answer is: the beginning of a recession

Câu hỏi 6
You decide to lend Kate $3.000 at an 8% interest rate for 4 years. You want Kate to pay you
back in 4 equal annual payments. What will be your annual payments?

Select one:
a. $930
b. $905,76
c. $1.020,37
d. $750
Phản hồi
The correct answer is: $905,76

Câu hỏi 7
The market expectation for one-year T-bill rates for the following 8 years are 4%; 5,5%; 6%;
8,5%; 10%; 11,5%; 14% and 15,5%. Predict the shape of the yield curve regarding the market
expectation theory.

Select one:
a. The flat yield curve
b. The U-shape yield curve
c. The upward sloping yield curve
d. The inverted yield curve
Phản hồi
The correct answer is: The upward sloping yield curve

Câu hỏi 8
The nominal rate can only equal the real rate if

Select one:
a. general price levels are not expected to change
b. the real rate is not expected to change
c. the loanable funds market is in equilibrium
d. the loan maturity does not exceed 1 year
e. realized return is correctly predicted
Phản hồi
The correct answer is: general price levels are not expected to change

Câu hỏi 9
Calculate the current price of a 8-year coupon bond which has a face value of $1.000. The
coupon rate is 10% and the required yield to maturity is 12,25%.

Select one:
a. $ 889,2
b. $ 1.120
c. $ 396,7
d. $ 990,5
Phản hồi
The correct answer is: $ 889,2

Câu hỏi 10
The actual yield curve is usually more upward sloping then the one predicted by expectation
theory because

Select one:
a. investors usually demand a liquidity premium on longer-term securities
b. shorter-term securities are more volatile – không ổn định, có thể thay đổi đột ngột
c. investors are indifferent between short maturities and long maturities
d. interest rate forecasts are usually wrong
Phản hồi
The correct answer is: investors usually demand a liquidity premium on longer-term
securities

Câu hỏi 11
Calculate the yield to maturity on a 16-year coupon bond with $1.000 face value that sells
for $2.300. The coupon rate is 20% annually.

Select one:
a. 7,7%
b. 8,8%
c. 6,6%
d. 10,9%
Phản hồi
The correct answer is: 6,6%
Câu hỏi 12
If loan contracts are not adjusted to address it, inflation can transfer wealth from

Select one:
a. lenders to borrowers
b. borrowers to lenders
c. businesses to households
d. governments to businesses
e. the financial sector to the real sector
Phản hồi
The correct answer is: lenders to borrowers

Câu hỏi 13
Suppose the current 1-year rate is 2 percent. The market expects the 1-year rate to be 3
percent 1 year from now, and 5 percent 2 years from now. The 3-year liquidity premium is
0,5%. According to the liquidity premium theory, the current 3-year rate should be

Select one:
a. 10,5%
b. 3,833%
c. 3,333%
d. 10,000%
Phản hồi
The correct answer is: 3,833%

Câu hỏi 14
Calculate the present value of a discount bond with five years to maturity if the yield to
maturity is 7% and the face value is $1.000.

Select one:
a. $1.070
b. $935
c. $713
d. $1.403
Phản hồi
The correct answer is: $713

Câu hỏi 15
Hoàn thành
Đạt điểm 1,00 trên 1,00
 Đặt cờ

Đoạn văn câu hỏi

The investor gives out a $8.000 loan with a 6-year term. The yield to maturity is 9%, how
much he will receive at maturity date?

Select one:
a. $ 14.350
b. $13.416
c. $16.771
d. $12.320
Phản hồi
The correct answer is: $13.416
CHAPTER 3

The face value of bonds issued to the public in Vietnam is:

Select one:

a. Minimum denomination is 10.000 VND and as a multiple of 10.000 VND

b. Minimum denomination is 1.000.000 VND and as a multiple of 1.000.000 VND

c. Minimum denomination is 500.000 VND and as a multiple of 500.000 VND

d. Minimum denomination is 100.000 VND and as a multiple of 100.000 VND

Phản hồi
The correct answer is: Minimum denomination is 100.000 VND and as a multiple of
100.000 VND

Câu hỏi 2
Money market instruments share all the following features except

Select one:

a. low default risk

b. small denominations

c. low price risk

d. high liquidity

Phản hồi
The correct answer is: small denominations

Câu hỏi 3
Bond holders have:

Select one:

a. Fixed interest rate

b. The right to vote at the shareholders' meeting

c. Income depends on the company's performance

d. Residual claims on firm assets and cashflows

Phản hồi
The correct answer is: Fixed interest rate

Câu hỏi 4
If market interest rate increases, the bond price in the market ________

Select one:

a. increases

b. decreases

c. has no change

d. Market interest rates do not affect bond prices

Phản hồi
The correct answer is: decreases

Câu hỏi 5
Which of the following money market instruments does not have a secondary market?

Select one:

a. T-bills

b. repurchase agreements

c. commercial paper
d. bankers' acceptances

Phản hồi
The correct answer is: repurchase agreements

Câu hỏi 6
An investor purchases a certificate of deposit for $1.400.000 with a term of 30 days and an
9% rate of return annually. How much money will this investor receive on the maturity date?

Select one:

a. $1.284.000

b. $1.526.000

c. $1.410.500

d. $1.389.580

Phản hồi
The correct answer is: $1.410.500

Câu hỏi 7
At any given time, the yield on commercial paper is __________ the yield on a T-bill with the
same maturity
Select one:

a. slightly less than

b. slightly higher than

c. equal to

d. A and B both occur with about equal frequency

Phản hồi
The correct answer is: slightly higher than

Câu hỏi 8
Which of the following statements is a TRUE statement?
Select one:

a. The issuer (company) implements a call provision to reduce capital costs when market
interest rates increase.

b. Bonds with sinking fund provision are not preferred because it increases investor risk.
c. Convertible bonds provide investors high rates of return in case the company grows
well.

d. Floating rate bonds allow investors to benefit from falling market interest rates.

Phản hồi
The correct answer is: Convertible bonds provide investors high rates of return in case the
company grows well.

Câu hỏi 9
In a Treasury auction of 2,1 billion T-bill, 1.000$ par value and 91 days to maturity, the
following 5 bids were submitted. If only these competitive bids are received, who will receive
T-bills and at what price?

Bidder Bid Amount Price

A $500 million $994,0
B $750 million $990,1
C $1,5 billion $992,5
D $1 billion $993,6
E $600 million $993,9
Select one:

a. Bidder A, D, E; issue price is $993,6

b. Bidder B, C, D; issue price is $990,1

c. Bidder A, E; issue price is $993,9

d. Bidder C, D, E; issue price is i$992,5

Phản hồi
The correct answer is: Bidder A, D, E; issue price is $993,6

Câu hỏi 10
The market price of 45-day commercial paper is $793.060. If the commercial paper face
value is $800.000, calculate the rate of return of commercial paper?
Select one:

a. 7%

b. 9%
c. 8%

d. 6%

Phản hồi
The correct answer is: 7%

Câu hỏi 11
The yield on a corporate bond is 10% and it is currently selling at par. The marginal tax rate
is 20%. A par value municipal bond with a coupon rate of 8,50% is available. Which security
is a better buy?

Select one:

a. The yield on corporate bond is the same as municipal bond

b. Municipal bond

c. Corporate bond

Phản hồi
The correct answer is: Municipal bond

Câu hỏi 12
A "repo" transaction is essentially
Select one:

a. a secured short-term loan

b. riskiest

c. an unsecured short-term loan

d. an option transaction

Phản hồi
The correct answer is: a secured short-term loan

Câu hỏi 13
Which of the following is not a money market instrument?

Select one:

a. banker's acceptance

b. negotiable certificate of deposits

c. repurchase agreements

d. municipal bonds

Phản hồi
The correct answer is: municipal bonds

Câu hỏi 14
A private investor purchases a Treasury bill with a $10.000 par value for $9.500 One hundred
days later, he sells the T-bill for $9.940. What is the T-bill discount rate?
Edited: A private investor purchases a 182-day Treasury bill with a $10.000 par value for
$9.500. One hundred days later, he sells the T-bill for $9.940. What is the T-bill discount
rate?
=(10000-9500)/10000*360/182=9,89%
Select one:

a. 9,89%

b. 10,41%

c. 14,09%

d. 9,29%

Phản hồi
The correct answers are: 9,89%, 10,41%, 14,09%, 9,29%

Câu hỏi 15
T-bills are auctioned to the bidders who offer the

Select one:

a. highest discounts from par

b. lowest discounts from par

c. highest volumes of orders

d. highest premiums over par

Phản hồi
The correct answer is: lowest discounts from par
CHAPTER 4

"Nonparticipating" means that

Select one:

a. preferred shareholders do not vote.

b. the preferred stock dividend is fixed.

c. preferred shareholders share the "'residual claim".

d. shareholders do not direct day-to-day activities.

Phản hồi
The correct answer is: the preferred stock dividend is fixed.

Câu hỏi 2
Hoàn thành

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Đặt cờ

Đoạn văn câu hỏi

The process of conducting an IPO:
Select one:

a. is typically handled by an investment bank or stockbroking firm engaged by the firm.

b. requires a prospectus that is meant to overcome the problem of information asymmetry.

c. requires the firm satisfy the requirements of SEC.

d. requires stock price evaluation process.

e. All of these above.

Phản hồi
The correct answer is: All of these above.

Câu hỏi 3
Hoàn thành

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 Đặt cờ

Đoạn văn câu hỏi

The most unfavored feature of common stock is that it

Select one:

a. carries limited liability.

b. pays dividends.

c. trades on an organized exchange.

d. is the residual claim against the firm's cash flows or assets.

Phản hồi
The correct answer is: is the residual claim against the firm's cash flows or assets.

Câu hỏi 4
Hoàn thành

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Đặt cờ

Đoạn văn câu hỏi

Investor X has just sold 1.000 shares of ABC Company at the price of 40.000 VND per share.
These shares were bought last year at 35.000 VND per share. He also received dividends of
2.000 VND per share. Calculate the investor X income on this investment.
Select one:

a. 2.000.000 VND

b. 8.000.000 VND

c. 5.000.000 VND

d. 7.000.000 VND
Phản hồi
The correct answer is: 7.000.000 VND

Câu hỏi 5
Hoàn thành

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Đoạn văn câu hỏi

Consider a company has 12 billion VND profit after tax. It decides to keep 2 billion VND for
reinvestment and the rest will be paid out in dividends to shareholders. Number of common
stocks in circulation is 5.000.000 shares. Preferred stocks account for 1 billion VND and will
be paid the annual dividends of 20%. So, the dividends for each common stock are:

Select one:

a. 1.960 VND

b. 2.400 VND

c. 2.000 VND

d. 2.360 VND

Phản hồi
The correct answer is: 1.960 VND

Câu hỏi 6
Hoàn thành

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Đặt cờ

Đoạn văn câu hỏi

A ______ order is an order to buy or sell a stock means to execute the transaction at the best
possible price.
Select one:

a. stop-loss

b. market

c. stop-buy

d. limit

Phản hồi
The correct answer is: market

Câu hỏi 7
Hoàn thành

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Đặt cờ

Đoạn văn câu hỏi

IPO stands for

Select one:

a. Investor Preferred Option

b. Initial Private Offering

c. Initial Public Offering

d. Internally Profitable °operations

Phản hồi
The correct answer is: Initial Public Offering

Câu hỏi 8
Hoàn thành

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 Đặt cờ

Đoạn văn câu hỏi

A difference between common and preferred stocks is:

Select one:

a. preference dividends are a fixed amount.

b. preference shares have greater potential for capital gains.

c. preferred dividends are payable only after ordinary dividends have been paid.

d. ordinary shares are less risky.

Phản hồi
The correct answer is: preference dividends are a fixed amount.

Câu hỏi 9
Hoàn thành

Đạt điểm 1,00 trên 1,00

Đặt cờ

Đoạn văn câu hỏi

Which of the following is NOT TRUE with respect to preferred stock?

Select one:

a. Normally, the owners of preferred stock do not participate in the profits of the firm
beyond the stated fixed annual dividend.

b. Payment of preferred dividends is not a tax-deductible expense.

c. Preferred stock usually does not allow for significant voting rights.

d. If the firm does not have sufficient earnings from which to pay the preferred stock
dividends, the preferred shareholders may force the firm into bankruptcy.
Phản hồi
The correct answer is: If the firm does not have sufficient earnings from which to pay the
preferred stock dividends, the preferred shareholders may force the firm into bankruptcy.

Câu hỏi 10
Hoàn thành

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Đặt cờ

Đoạn văn câu hỏi

A ______ order is an order to buy or sell stocks at the price available at the closing of the
trading day.

Select one:

a. limit

b. market

c. ATO

d. ATC

Phản hồi
The correct answer is: ATC
CHAPTER 5