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1、. . The Economics of Money, Banking, and Financial Markets, 9e (Mishkin)Chapter 4 Understanding Interest Rates4.1 Measuring Interest Rates1) The concept of _ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today.A) present valueB) fut
2、ure valueC) interestD) deflationAnswer: AQues Status: Previous Edition2) The present value of an expected future payment _ as the interest rate increases.A) fallsB) risesC) is constantD) is unaffectedAnswer: AQues Status: Previous Edition3) An increase in the time to the promised future payment _ th
3、e present value of the payment.A) decreasesB) increasesC) has no effect onD) is irrelevant toAnswer: AQues Status: Previous Edition4) With an interest rate of 6 percent, the present value of $100 next year is approximatelyA) $106.B) $100.C) $94.D) $92.Answer: CQues Status: Previous Edition5) If a se
4、curity pays $55 in one year and $133 in three years, its present value is $150 if the interest rate isA) 5 percent.B) 10 percent.C) 12.5 percent.D) 15 percent.Answer: BQues Status: Previous Edition6) To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 mi
5、llion ignores the process ofA) face value.B) par value.C) deflation.D) discounting the future.Answer: DQues Status: Revised7) A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as aA) simple l
6、oan.B) fixed-payment loan.C) coupon bond.D) discount bond.Answer: AQues Status: Previous Edition8) A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond.Ans
7、wer: BQues Status: Previous Edition9) Which of the following are true of fixed payment loans?A) The borrower repays both the principal and interest at the maturity date.B) Installment loans and mortgages are frequently of the fixed payment type.C) The borrower pays interest periodically and the prin
8、cipal at the maturity date.D) Commercial loans to businesses are often of this type.Answer: BQues Status: Previous Edition10) A fully amortized loan is another name forA) a simple loan.B) a fixed-payment loan.C) a commercial loan.D) an unsecured loan.Answer: BQues Status: Previous Edition11) A credi
9、t market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond.Answer: CQues Status: Previous Edition12) A _ pays the owner a fixed coupon payment every y
10、ear until the maturity date, when the _ value is repaid.A) coupon bond; discountB) discount bond; discountC) coupon bond; faceD) discount bond; faceAnswer: CQues Status: Previous Edition13) The _ is the final amount that will be paid to the holder of a coupon bond.A) discount valueB) coupon valueC)
11、face valueD) present valueAnswer: CQues Status: Previous Edition14) When talking about a coupon bond, face value and _ mean the same thing.A) par valueB) coupon valueC) amortized valueD) discount valueAnswer: AQues Status: New15) The dollar amount of the yearly coupon payment expressed as a percenta
12、ge of the face value of the bond is called the bonds A) coupon rate.B) maturity rate.C) face value rate.D) payment rate.Answer: AQues Status: New16) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year isA) $650.B) $1,300.C) $130.D) $13.Answer: AQues Status: Pr
13、evious Edition17) An $8,000 coupon bond with a $400 coupon payment every year has a coupon rate ofA) 5 percent.B) 8 percent.C) 10 percent.D) 40 percent.Answer: AQues Status: Previous Edition18) All of the following are examples of coupon bonds exceptA) Corporate bondsB) U.S. Treasury billsC) U.S. Tr
14、easury notesD) U.S. Treasury bondsAnswer: BQues Status: Previous Edition19) A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond.Answer: DQues Status: Previous Edition20)
15、A _ is bought at a price below its face value, and the _ value is repaid at the maturity date.A) coupon bond; discountB) discount bond; discountC) coupon bond; faceD) discount bond; faceAnswer: DQues Status: Previous Edition21) A discount bondA) pays the bondholder a fixed amount every period and the face value at maturity.B) pays th
