Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
Economics Of Money Banking And Financial f f f f f f
Description
INSTANT DOWNLOAD WITH ANSWERS
f f f
Economics Of Money Banking And Financial Markets 10th Edition by Mishkin – Test
f f f f f f f f f f f f
bank
f
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin)
f f f f f f f f
Chapter 6 The Risk and Term Structure of Interest Rates
f f f f f f f f f f
6.1 Risk Structure of Interest Rates
f f f f
1) The risk structure of interest rates is
f f f f f f
1. A) the structure of how interest rates move over time.
f f f f f f f f f
2. B) the relationship among interest rates of different bonds with the same maturity.
f f f f f f f f f f f f
3. C) the relationship among the term to maturity of different bonds.
f f f f f f f f f f
4. D) the relationship among interest rates on bonds with different maturities.
f f f f f f f f f f
Answer: B f
,Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
2) The risk that interest payments will not be made, or that the face value of a bond is not repaid
f f f f f f f f f f f f f f f f f f f
when a bond matures is
f f f f f
1. A) interest rate risk.
f f f
2. B) inflation risk.f f
3. C) moral hazard. f f
4. D) default risk. f f
Answer: D f
Ques Status: Previous Edition
f f f
3) Bonds with no default risk are called
f f f f f f
1. A) flower bonds. f f
2. B) no-risk bonds. f f
3. C) default-free bonds.
f f
4. D) zero-risk bonds. f f
Answer: C f
Ques Status: Previous Edition
f f f
4) Which of the following bonds are considered to be default-risk free?
f f f f f f f f f f
1. A) Municipal bondsf f
2. B) Investment-grade bonds
f f
3. C) U.S. Treasury bonds
f f f
,Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
4. D) Junk bonds f f
Answer: C f
Ques Status: Previous Edition
f f f
AACSB: Analytic skills
f f f
5) U.S. government bonds have no default risk because
f f f f f f f
1. A) they are backed by the full faith and credit of the federal government.
f f f f f f f f f f f f f
2. B) the federal government can increase taxes to pay its obligations.
f f f f f f f f f f
3. C) they are backed with gold reserves.
f f f f f f
4. D) they can be exchanged for silver at any time.
f f f f f f f f f
Answer: B f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
6) The spread between the interest rates on bonds with default risk and default-free bonds is
f f f f f f f f f f f f f f
called the
f f
1. A) risk premium. f f
2. B) junk margin. f f
3. C) bond margin. f f
4. D) default premium. f f
Answer: A f
Ques Status: Previous Edition
f f f
AACSB: Analytic skills
f f f
, Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
7) If the probability of a bond default increases because corporations begin to suffer large losses,
f f f f f f f f f f f f f f
then the default risk on corporate bonds will
f f f and the expected return on these bonds
f f f f f f f f f f f
will
f , everything else held constant. f f f f
1. A) decrease; increase f f
2. B) decrease; decrease f f
3. C) increase; increase f f
4. D) increase; decrease f f
Answer: D f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
8) Abond with default risk will always have a
f f f f f f f f risk premium and an increase in its
f f f f f f
default risk will
f f the risk premium.
f f f
1. A) positive; raise f f
2. B) positive; lower f f
3. C) negative; raise f f
4. D) negative; lower f f
Answer: A f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
9) If a corporation begins to suffer large losses, then the default risk on the corporate bond will
f f f f f f f f f f f f f f f f
1. A) increase and the bond’s return will become more uncertain, meaning the expected return onthe
f f f f f f f f f f f f f f f
corporate bond will fall.
f f f f
f f f f f f f f f f f f
bank.
f
Economics Of Money Banking And Financial f f f f f f
Description
INSTANT DOWNLOAD WITH ANSWERS
f f f
Economics Of Money Banking And Financial Markets 10th Edition by Mishkin – Test
f f f f f f f f f f f f
bank
f
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin)
f f f f f f f f
Chapter 6 The Risk and Term Structure of Interest Rates
f f f f f f f f f f
6.1 Risk Structure of Interest Rates
f f f f
1) The risk structure of interest rates is
f f f f f f
1. A) the structure of how interest rates move over time.
f f f f f f f f f
2. B) the relationship among interest rates of different bonds with the same maturity.
f f f f f f f f f f f f
3. C) the relationship among the term to maturity of different bonds.
f f f f f f f f f f
4. D) the relationship among interest rates on bonds with different maturities.
f f f f f f f f f f
Answer: B f
,Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
2) The risk that interest payments will not be made, or that the face value of a bond is not repaid
f f f f f f f f f f f f f f f f f f f
when a bond matures is
f f f f f
1. A) interest rate risk.
f f f
2. B) inflation risk.f f
3. C) moral hazard. f f
4. D) default risk. f f
Answer: D f
Ques Status: Previous Edition
f f f
3) Bonds with no default risk are called
f f f f f f
1. A) flower bonds. f f
2. B) no-risk bonds. f f
3. C) default-free bonds.
f f
4. D) zero-risk bonds. f f
Answer: C f
Ques Status: Previous Edition
f f f
4) Which of the following bonds are considered to be default-risk free?
f f f f f f f f f f
1. A) Municipal bondsf f
2. B) Investment-grade bonds
f f
3. C) U.S. Treasury bonds
f f f
,Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
4. D) Junk bonds f f
Answer: C f
Ques Status: Previous Edition
f f f
AACSB: Analytic skills
f f f
5) U.S. government bonds have no default risk because
f f f f f f f
1. A) they are backed by the full faith and credit of the federal government.
f f f f f f f f f f f f f
2. B) the federal government can increase taxes to pay its obligations.
f f f f f f f f f f
3. C) they are backed with gold reserves.
f f f f f f
4. D) they can be exchanged for silver at any time.
f f f f f f f f f
Answer: B f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
6) The spread between the interest rates on bonds with default risk and default-free bonds is
f f f f f f f f f f f f f f
called the
f f
1. A) risk premium. f f
2. B) junk margin. f f
3. C) bond margin. f f
4. D) default premium. f f
Answer: A f
Ques Status: Previous Edition
f f f
AACSB: Analytic skills
f f f
, Economics Of Money Banking And Financial Markets 10th Edition by Mishkin - Test
f f f f f f f f f f f f
bank.
f
7) If the probability of a bond default increases because corporations begin to suffer large losses,
f f f f f f f f f f f f f f
then the default risk on corporate bonds will
f f f and the expected return on these bonds
f f f f f f f f f f f
will
f , everything else held constant. f f f f
1. A) decrease; increase f f
2. B) decrease; decrease f f
3. C) increase; increase f f
4. D) increase; decrease f f
Answer: D f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
8) Abond with default risk will always have a
f f f f f f f f risk premium and an increase in its
f f f f f f
default risk will
f f the risk premium.
f f f
1. A) positive; raise f f
2. B) positive; lower f f
3. C) negative; raise f f
4. D) negative; lower f f
Answer: A f
Ques Status: Previous Edition
f f f
AACSB: Reflective thinking skills
f f f f
9) If a corporation begins to suffer large losses, then the default risk on the corporate bond will
f f f f f f f f f f f f f f f f
1. A) increase and the bond’s return will become more uncertain, meaning the expected return onthe
f f f f f f f f f f f f f f f
corporate bond will fall.
f f f f
