金融市场与机构Madura第九版题库ch06.doc

Chapter 6 Money Markets 1. Securities with maturities of one year or less are classified as A) capital market instruments. B) money market instruments. C) preferred stock. D) none of the above ANSWER: B 2. Which of the following is not a money market security? A) Treasury bill B) negotiable certificate of deposit C) common stock D) federal funds ANSWER: C 3. ________ are sold at an auction at a discount from par value. A) Treasury bills B) Repurchase agreements C) Banker’s acceptances D) Commercial paper ANSWER: A 4. Jarrod King, a private investor, purchases a Treasury bill with a $10,000 par value for $9,645. One hundred days later, Jarrod sells the T-bill for $9,719. What is Jarrod’s expected annualized yield from this transaction? 13.43 percent 2.78 percent 10.55 percent 2.80 percent none of the above ANSWER: D 5. If an investor buys a Tbill with a 90day maturity and $50,000 par value for $48,500 and holds it to maturity, what is the annualized yield? A) about 13.4 percent B) about 12.5 percent C) about 11.3 percent D) about 11.6 percent E) about 10.7 percent ANSWER: B 6. An investor buys a Tbill with 180 days to maturity and $250,000 par value for $242,000.? He plans to sell it after 60 days, and forecasts a selling price of $247,000 at that time.? What is the annualized yield based on this expectation? A) about 10.1 percent B) about 12.6 percent C) about 11.4 percent D) about 13.5 percent E) about 14.3 percent ANSWER: B 7. Assume investors require a 5 percent annualized return on a six-month T-bill with a par value of $10,000. The price investors would be willing to pay is $________. A) 10,000 B) 9,524 C) 9,756 D) none of the above ANSWER: C 8. A newly issued Tbill with a $10,000 par value sells for $9,750, and has a 90day maturity.? What is the discount? A) 10.26 percent B) 0.26 percent C) $2,500 D) 10.00 percent E) 11.00 percent ANSWER: D 9. Large corporations typically make ___________ bids for T-bills so they can pur