投资学题库Chap002.docx

Chapter 02Asset Classes and Financial Instruments?Multiple Choice Questions?1.Which of the following is not a characteristic of a money market instrument???A.?LiquidityB.?MarketabilityC.?Long maturityD.?Liquidity premiumE.?Long maturity and liquidity premium?2.The money market is a subsector of the??A.?commodity market.B.?capital market.C.?derivatives market.D.?equity market.E.?None of the options?3.Treasury Inflation-Protected Securities (TIPS)??A.?pay a fixed interest rate for life.B.?pay a variable interest rate that is indexed to inflation, but maintain a constant principal.C.?provide a constant stream of income in real (inflation-adjusted) dollars.D.?have their principal adjusted in proportion to the Consumer Price Index.E.?provide a constant stream of income in real (inflation-adjusted) dollars and have their principal adjusted in proportion to the Consumer Price Index.?4.Which one of the following is not a money market instrument???A.?Treasury billB.?Negotiable certificate of depositC.?Commercial paperD.?Treasury bondE.?Eurodollar account?5.T-bills are financial instruments initially sold by ________ to raise funds.??A.?commercial banksB.?the U.S. governmentC.?state and local governmentsD.?agencies of the federal governmentE.?the U.S. government and agencies of the federal government?6.The bid price of a T-bill in the secondary market is??A.?the price at which the dealer in T-bills is willing to sell the bill.B.?the price at which the dealer in T-bills is willing to buy the bill.C.?greater than the asked price of the T-bill.D.?the price at which the investor can buy the T-bill.E.?never quoted in the financial press.?7.The smallest component of the money market is??A.?repurchase agreements.B.?small-denomination time deposits.C.?savings deposits.D.?money market mutual funds.E.?commercial paper?8.The smallest component of the bond market is _______ debt.??A.?TreasuryB.?other asset-backedC.?corporateD.?tax-exemptE.?mortgage-backed?9.The largest component of the b