货币金融学弗雷德里克.S.米什金 英文第七版 课后习题答案.pdf

PART III ANSWERS TO END-OF-CHAPTER PROBLEMS Part III Answers to End-of-Chapter Problems 97 ANSWERS TO END-OF-CHAPTER PROBLEMS WITHOUT ASTERISKS CHAPTER 1 Why Study Money, Banking, and Financial Markets? 7. The basic activity of banks is to accept deposits and make loans. 9. The interest rate on three-month Treasury bills fluctuates more than the other interest rates and is lower on average. The interest rate on Baa corporate bonds is higher on average than the other interest rates. 11. Higher stock prices means that consumers’ wealth is higher and so they will be more likely to increase their spending. 13. It makes British goods more expensive relative to American goods. Thus American businesses will find it easier to sell their goods in the United States and abroad and the demand for their products will rise. 15. When the dollar increases in value, foreign goods become less expensive relative to American goods; thus you are more likely to buy French-made jeans than American-made jeans. The resulting drop in demand for American-made jeans because of the strong dollar hurts American jeans manufacturers. On the other hand, the American company that imports jeans into the United States now finds that the demand for its product has risen, so it is better off when the dollar is strong. 98 Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition CHAPTER 2 An Overview of the Financial System 2. Yes, I should take out the loan, because I will be better off as a result of doing so. My interest payment will be $4,500 (90% of $5,000), but as a result, I will earn an additional $10,000, so I will be ahead of the game