货币金融学chapter 4英文习题.docx

EconomicsofMoney,Banking,andFinancialMarkets,11e,Global(MEdiisthikoinn)Chapter4 TheMeaningofInterestRates

MeasuringInterestRates

Theconceptof isbasedonthecommon-sensenotionthatadollarpaidtoyouinthefutureislessvaluabletoyouthanadollartoday.

presentvalue

futurevalue

interest

deflationAnswer: A

AACSB: ApplicationofKnowledge

Thepresentvalueofanexpectedfuturepayment astheinterestrateincreases.

falls

rises

isconstant

isunaffectedAnswer: A

AACSB: ReflectiveThinking

Anincreaseinthetimetothepromisedfuturepayment thepresentvalueofthepayment.

decreases

increases

hasnoeffecton

isirrelevanttoAnswer: A

AACSB: ReflectiveThinking

Withaninterestrateof6percent,thepresentvalueof$100nextyearisapproximatelyA)$106.

B)$100.

C)$94.

D)$92.

Answer: C

AACSB: AnalyticalThinking

Whatisthepresentvalueof$500.00tobepaidintwoyearsiftheinterestrateis5percent?A)$453.51

B)$500.00

C)$476.25

D)$550.00

Answer: A

AACSB: AnalyticalThinking

Ifasecuritypays$55inoneyearand$133inthreeyears,itspresentvalueis$150iftheinterestrateis

5percent.

10percent.

12.5percent.

15percent.

Answer: B

AACSB: AnalyticalThinking

Toclaimthatalotterywinnerwhoistoreceive$1millionperyearfortwentyyearshaswon

$20millionignorestheprocessof

facevalue.

parvalue.

deflation.

discountingthefuture.Answer: D

AACSB: AnalyticalThinking

Acreditmarketinstrumentthatprovidestheborrowerwithanamountoffundsthatmustberepaidatthematuritydatealongwithaninterestpaymentisknownasa

simpleloan.

fixed-paymentloan.

couponbond.

discountbond.

Answer: A

AACSB: ApplicationofKnowledge

Acreditmarketinstrumentthatrequirestheborrowertomakethesamepaymenteveryperioduntilthematuritydateisknownasa

simpleloan.

fixed-paymentloan.

couponbond.

discountbond.

Answer: B

AACSB: ApplicationofKnowledge

WhichofthefollowingareTRUEoff