Thị trường tài chính

The "Liquidity Trap" occurs when:

• Inflation exceeds the central bank's target.

• The money multiplier becomes infinitely large.

• Fiscal policy crowds out private investment.

• Banks refuse to lend despite low interest rates.

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at

• a discount.

• par.

• either a discount or premium.

• a premium.

Compared to interest rates on long-term U.S. government bonds, interest rates on three month Treasury bills fluctuate _______ and are _______ on average.

• more; higher

• less; higher

• more; lower

• less; lower

Which one of the following is the rate at which a stock's price is expected to appreciate?

• dividend yield

• total return

• current yield

• coupon rate

• capital gains yield

Modern Monetary Theory (MMT) argues that:

• Fiscal policy is irrelevant in a floating exchange rate regime.

• Governments issuing sovereign currency can never run out of money.

• Inflation is solely a monetary phenomenon.

• Central banks must always maintain high interest rates.

Dual Mandates (e.g., the Fed's) require central banks to target:

• Zero inflation at all costs.

• Only exchange rate stability.

• Fiscal balance alongside monetary policy.

• Both inflation and employment.

When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:

• A discount

• Cannot be determined without more information

• Face value

• A premium

Which of the following are primary markets?

• None of the above

• The over-the-counter stock market

• The U.S. government bond market

• The New York Stock Exchange

• The options markets.

Which one of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividends or bankruptcy proceedings?

• common

• cumulative

• non-cumulative

• preferred

• dual class

Which of the following industry categories is said to be "bought to be sold?"

• countercyclical

• defensive

• cyclical

• growth