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1)
Which of the following is not what can we expect in the
future regarding pension funds?
A) Pension funds will help create more stable financial markets.
B) Pension funds will continue their growth and popularity.
C) Pension fund variety will continue to expand.
D) Pension funds will gain increased control over corporations as
they invest in the equity of these companies.
Answer:[membership level="2,3,4,5"]
A[/membership]
2)
The interest parity condition states that ________.
A) the domestic interest rate equals the foreign interest rate
minus the expected appreciation of the domestic currency
B) the domestic interest rate equals the foreign interest rate
plus the expected appreciation of the foreign currency
C) Neither A nor B is correct.
D) Both A and B are correct.
Answer:[membership level="2,3,4,5"]
D[/membership]
3)
The current account shows ________.
A) international transactions that involve currently produced
goods and services
B) the flow of capital between the U.S. and other countries
C) payments between the U.S. and other countries
D) current IOUs of the U.S.
Answer:[membership level="2,3,4,5"]
A[/membership]
4)
In 2009 provisions for loan losses reached a new peak of ________
of total operating expenses.
A) 60%
B) 50%
C) 33%
D) 13%
Answer:[membership level="2,3,4,5"]
C[/membership]
5)
Refer to Table 23.2. Assuming that the average duration of the
bank's assets is four years, while the average duration of its
liabilities is three years, a rise in interest rates from 5
percent to 10 percent will cause the net worth of First National
to ________ by ________ of the total original asset value.
A) decline; 5%
B) decline; 1.3%
C) decline; 6.2%
D) increase; 5%
Answer:[membership level="2,3,4,5"]
C[/membership]
6)
The Bank of England, as well as the ECB, put price stability
first among all goals. This is known as a ________.
A) hierarchical mandate
B) dual mandate
C) singular mandate
D) ubiquitous mandate
Answer:[membership level="2,3,4,5"]
A[/membership]
7)
Future options are particularly useful for offsetting risk
