1、Chapter 4 Why Do Interest Rates Change?4.1 Single Choice1) As the price of a bond _ and the expected return _, bonds become more attractive to investors and the quantity demanded rises. A) falls; rises B) falls; falls C) rises; rises D) rises; falls 2) The supply curve for bonds has the usual upward
2、 slope, indicating that as the price _, ceteris paribus, the _ increases. A) falls; supply B) falls; quantity supplied C) rises; supply D) rises; quantity supplied 3) When the price of a bond is above the equilibrium price, there is excess _ in the bond market and the price will _. A) demand; rise B
3、) demand; fall C) supply; fall D) supply; rise 4) When the price of a bond is below the equilibrium price, there is excess _ in the bond market and the price will _. A) demand; rise B) demand; fall C) supply; fall D) supply; rise 5) When the price of a bond is _ the equilibrium price, there is an ex
4、cess supply of bonds and the price will _. A) above; rise B) above; fall C) below; fall D) below; rise 6) When the price of a bond is _ the equilibrium price, there is an excess demand for bonds and the price will _. A) above; rise B) above; fall C) below; fall D) below; rise 7) When the interest ra
5、te on a bond is above the equilibrium interest rate, there is excess _ in the bond market and the interest rate will _. A) demand; rise B) demand; fall C) supply; fall D) supply; rise 8) When the interest rate on a bond is below the equilibrium interest rate, there is excess _ in the bond market and
6、 the interest rate will _. A) demand; rise B) demand; fall C) supply; fall D) supply; rise 9) When the interest rate on a bond is _ the equilibrium interest rate, there is excess _ in the bond market and the interest rate will _. A) above; demand; fall B) above; demand; rise C) below; supply; fall D
7、) above; supply; rise 10) When the interest rate on a bond is _ the equilibrium interest rate, there is excess _ in the bond market and the interest rate will _. A) below; demand; rise B) below; demand; fall C) below; supply; rise D) above; supply; fall 11) When the demand for bonds _ or the supply
8、of bonds _, interest rate rise. A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases 12) When the demand for bonds _ or the supply of bonds _, interest rates fall. A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increas
9、es 13) When the demand for bonds _ or the supply of bonds _, bond prices rise. A) increases; decreases B) decreases; increases C) decreases; decreases D) increases; increases 14) When the demand for bonds _ or the supply of bonds _, bond prices fall. A) increases; increases B) increases; decreases C
10、) decreases; decreases D) decreases; increases 15) Factors that determine the demand for an asset include changes in the A) wealth of investors. B) liquidity of bonds relative to alternative assets. C) expected returns on bonds relative to alternative assets. D) risk of bonds relative to alternative
11、 assets. E) all of the above. 16) The demand for an asset rises if _ falls. A) risk relative to other assets B) expected return relative to other assets C) liquidity relative to other assets D) wealth 17) The higher the standard deviation of returns on an asset, the _ is the assets _. A) greater; ri
12、sk B) smaller; risk C) greater; expected return D) smaller; expected return 18) Diversification benefits an investor by A) increasing wealth. B) increasing expected return. C) reducing risk. D) increasing liquidity. 19) In a recession when income and wealth are falling, the demand for bonds _ and th
13、e demand curve shifts to the _. A) falls; right B) falls; left C) rises; right D) rises; left 20) During business cycle expansions when income and wealth are rising, the demand for bonds _ and the demand curve shifts to the _. A) falls; right B) falls; left C) rises; right D) rises; left答案：1-5：ADCAB 6-10:DBDAC 11-15:DBADE 16-20:AACBC
