2024年4月29日发(作者：)

Multiple Choice Questions

1. In 2002, ____________ was the most significant asset of U. S.

nonfinancial businesses in terms of total value.

A) equipment and structures

B) inventory

C) real estate

D) trade credit

E) marketable securities

Answer: C Difficulty: Easy

Rationale: See Table 1.5, page 13.

2. The net wealth of the aggregate economy is equal to the sum of

_________.

A) all financial assets

B) all real assets

C) all financial and real assets

D) all physical assets

E) none of the above

Answer: B Difficulty: Easy

Rationale: Financial assets do not directly contribute the productive

capacity of the economy.

3. ____________ of an investment bank.

A) Salomon Smith Barney is an example

B) Merrill Lynch

C) Goldman Sachs is an example

D) B and C are each examples

E) Each of the above is an example

Answer: E Difficulty: Easy

Rationale: See page 16.

4. _______ are financial assets.

A) Bonds

B) Machines

C) Stocks

D) A and C

E) A, B and C

Answer: D Difficulty: Easy

Rationale: Machines are real assets; stocks and bonds are financial

assets.

5. An example of a derivative security is ______.

A) a common share of General Motors

B) a call option on Mobil stock

C) a commodity futures contract

D) B and C

E) A and B

Answer: D Difficulty: Easy

Rationale: The values of B and C are derived from that of an

underlying financial asset; the value of A is based on the value of the

firm only.

6. _______ was the first to introduce mortgage pass-through

securities.

A) Chase Manhattan

B) Citicorp

C) FNMA

D) GNMA

E) None of the above

Answer: D Difficulty: Easy

Rationale: See page 17.