货币金融全英期末试卷
试卷 1.名词解释： 1．Recession:
It is declining aggregate output in a period of business cycle in the economic operations.
2. Interest rate
It is the cost of borrowing or the price paid for the rental funds.
3. Money market
The money market is a financial market in which only short-run debt instruments are traded.
4. Capital market
It is the market in which long-term debt and equity instruments are traded.
5. Default
A situation in which the party issuing the debt instrument is unable to make interest payments or pay off the amount owed when the instrument matures.
6. Currency
Currency in the real money used in everyday life that including paper money and coins.
7. Liquidity
An asset can be converted into a medium of exchange with relative ease, speed and no losses.
8. Leverage ratio
Bank capital requirements take two forms, first type is base on the leverage ratio, the amount of capital divided by the bank’s total assets.
9. Disintermediation
This loss of deposit from banking system restricted the amount of funds that banks could lend and thus limited bank profits.
10. Multiple deposit creation
When the Central Bank supplies the banking system with $1 of additional reserves ,deposits increase by a multiple of this amount, we could call this process as multiple deposit creation.
4. 计算题： A卷：
1．If we know required reserves rate =0.10, C=280 billion, D=800 billion, ER=40 billion, please calculate
(1)c, e , m, RR, R and MB;
(2) If central bank reduce the required reserve rate of the checkable deposit to 0.08, monetary base, c and e remain constantly, please calculate m, M, D, C, RR and ER.
Answer:
(1) c=280/800=0.35 e=40/800=0.05 m=1.35/0.5=2.7 RR=r*D=0.1*800=80 b R=RR+ER=120b MB=C+R=280+120=400b 5分 (2)m=1.35/0.48=2.8125 M=400/2.8125=1125b
M=C+D=c*D+D=(1+c)*D=1.35D D=1125/1.35=833.33b C=c*D=0.35*833.33=291.67b RR=0.08*833.33=66.67b ER=400-66.67-291.67=41.67b 5分2. A coupon bond makes annual interest payments of $10. This bond’s face (or par) value of $1,000. The maturity is 2 years.
REQUIRED:
Calculate the price of bond if the yield to maturity: (i) Drops to 6 percent; (ii) Rises to 10 percent
Answer:
（1）过程3分871.66 2分（2）过程3分809.09 2分 B卷:
1．If we know required reserves rate =0.10, C=300 billion, D=1000 billion, ER=80 billion, please calculate (1)c, e , m, RR, R and MB;
(2) If central bank reduce the required reserve rate of the checkable deposit to
0.09, monetary base, c and e remain constantly, please calculate m, M, D, C, RR and ER.
Answer:
(1) c=300/1000=0.3 e=80/1000=0.08 m=1.3/0.48=2.71 RR=r*D=0.1*1000=1000b R=RR+ER=180b MB=C+R=300+180=480b 5分 (2)m=1.3/0.47=2.77 M=m*MB=1300b
M=C+D=c*D+D=(1+c)*D=1.3D D=1300/1.3=1000b C=c*D=0.3*1000b=300b RR=0.09*1000=90b ER=180-90=90b 5分
2. Suppose there is a coupon bond with face value $1000. It pays 100 per year and it has 3-year maturity. The market interest rate is 10%.
REQUIRED:
(i)What is the price you buy this bond?
(ii)You hold this bond for a year and then sell it. At this time the market interest rate decreases to 5%. What is the return rate?
Answer:
(i)$1000 (4分) (ii)Price=1093 (3分) Return rate=9.3% 简答题： A卷：
1.If the Fed sells $10 million of bonds to the 1st bank, and a
depositor of first
bank transfer her $1 million to the 2nd bank. A depositor of 2nd closes his
account by withdrawing $2 million. Use T-accounts to explain what
happened. Answer:
Sell bond 4分(2 marks per account) Transfer fund 5分(2.5 marks per account) Close account 6分(2 marks per account)
2.In a recession, a country faces problems of low aggregate output and high
unemployment. The government desires to accelerate the growth of economy.
However, the government also suffers the budget deficit and debt cap. What should the government stimulate the growth of economy? (Fiscal policy?
Monetary policy? Or both?) Which tools should the central bank use to deal with? How to use each tool? Please explain the process each tool?
Answer:
Monetary policy (1 mark)
Because the government suffers the budget deficit and debt cap, it can not expand the government expenditure, no matter by government revenue or
expanding debt size. (2 marks) Open market operation (1 marks)
The central bank buys government securities. Both banks and nonbank public may sell their government securities, which leads both reserves and currency in circulation increase. Because monetary base includes reserves and currency, it will increase too.
Finally, the aggregate money supply increases. (3 marks if the logic chain is given, otherwise 1 mark)
Discount policy (1 marks)
The central bank decrease discount rate, which leads the expense/cost of borrowing from the central bank decrease. Banks may borrow more from the
central bank, which causes the reserves increase. Because monetary base includes reserves, it will increase too. Finally, the aggregate money supply increases. (3 marks if the logic chain is given, otherwise 1 mark)
Reserve requirement (1 marks)
The central bank decrease required reserve rate, which leads the capacity of multiple deposit creation increase. The money multiplier will increase. Finally, the
aggregate money supply increases. (3 marks if the logic chain is given, otherwise
1 mark) B卷:
1.Talking about bank capital Required: a.How to measure a bank’s profitability
b.What is the relation between banks’ capital and profitability
c.How to balance safety and returns to equity holders Answer: a. ROA 3分 b. ROE 3分
c.ROE= ROA *EM Or given the return on assets, the lower the bank capital, the higher the return for the owners of the bank 4分
d.Expected in expansion, high leveraged 2.5分
Expected in recession, low leveraged…………………………2.5分 2.Please talking about the basic tools of monetary policy and the monetary transmission mechanisms.
Answer:
Required Reserves
Advantages: Powerful effect Disadvantages:
Small changes have very large effect on M s Raising causes liquidity problems for banks Frequent changes cause uncertainty for banks Tax on banks 3分 Discount Loans Advantages :
Announcement Effect Central bank is passive 3分 Open Market Operation Fed has complete control Flexible and precise Easily reversed
Implemented quickly 3分 传导机制3分 机动3分 论述题
1．If the Fed sells $10 million of bonds to the 1st bank, and a depositor of first bank transfer her $1 million to the 2nd bank. A depositor of 2nd closes his account by withdrawing $2 million. Use T-accounts to explain what happened.
2．Talking about Friedman’s Quantity Theory（劳A） 计算题2：
1．If we know required reserves rate =0.10, C=280 billion,
D=800 billion, ER=40 billion, please calculate (1)c, e , m, RR, R and MB;
(2) If central bank reduce the required reserve rate of the checkable deposit to 0.08, monetary base remain constantly, please calculate m, M, D, C, RR and ER.
2．A bond makes semiannual (half year) interest payments of $10. This bond’s face (or par) value of $1,000. The maturity is 2 years.
REQUIRED:
Calculate the price of bond if the yield to maturity: (i) Drops to 6 percent; (ii) Rises to 10 percent
3．(1)For the fix payment 100$ per year consol, yield to maturity in the first of year is 10%,the end of the year is 5%.calculate return rate of the bond.
(2)There is a coupon bond 2 year remained to maturity date. Its coupon rate is 10%, sold at par, if the first of year's yield to maturity is 10%,the end of year's 5%.calculate the bond's return rate.
(3)Which bond is better worth to invest?
