英文證券卷七 HKSI Paper 7 第一章
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- 已答
- 回顧
- 1/187問題
1. 問題
1 分QID2958:
正確錯誤提示
Reference Chapter:1.3.5
- 2/187問題
2. 問題
1 分QID2419:Which of the following stock market has the least influence to Hong Kong stock market?
正確Malaysian has minor trade relations with Hong Kong. Besides, Malaysian stock market has the smallest market cap among the above options and hence has lesser influence on the global market.
錯誤Malaysian has minor trade relations with Hong Kong. Besides, Malaysian stock market has the smallest market cap among the above options and hence has lesser influence on the global market.
提示
Reference Chapter:1.3.4.2
- 3/187問題
3. 問題
1 分QID2428:Which of the following people GENERALLY holds hedges?
正確The wording of the question is actually not the most accurate. Arbitrageurs usually hold opposite positions, but this is the best answer among the existing answers.
錯誤The wording of the question is actually not the most accurate. Arbitrageurs usually hold opposite positions, but this is the best answer among the existing answers.
提示
Reference Chapter:1.3.3.2
- 4/187問題
4. 問題
1 分QID2241:If the stock market is the leading indicator of the economy, what does a rising stock market imply?
正確If the stock market is the leading indicator of the economy, a rising stock market represents continuous expansionary economy.
錯誤If the stock market is the leading indicator of the economy, a rising stock market represents continuous expansionary economy.
提示
Reference Chapter:1.3.1.1
- 5/187問題
5. 問題
1 分QID2287:Which market uses novation frequently?
正確Novation is the process whereby the clearing house undertakes the credit risk and acts as the counterparty of both buyer and seller. Only the exchange-traded market has this kind of arrangement. There is no clearing house used generally in foreign market, OTC market and fund-raising market. Thus, there is no novation.
錯誤Novation is the process whereby the clearing house undertakes the credit risk and acts as the counterparty of both buyer and seller. Only the exchange-traded market has this kind of arrangement. There is no clearing house used generally in foreign market, OTC market and fund-raising market. Thus, there is no novation.
提示
Reference Chapter:1.2.4.2
- 6/187問題
6. 問題
1 分QID973:If a company wishes to issue new shares to the public in order to raise capital, the company should proceed at which of the following markets?
正確The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
錯誤The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
提示
Reference Chapter:1.2.4.1
- 7/187問題
7. 問題
1 分QID493:Primary market is:
正確The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
錯誤The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
提示
Reference Chapter:1.2.4.2
- 8/187問題
8. 問題
1 分QID2434:Which of the following risks does a client need to bear when buying stock options on The Stock Exchange of Hong Kong Limited?
I Liquidity risk
II Option value decline
III Counterparty risk
IV Market risk正確The risk of counterparties on the Stock Exchange is extremely low because the clearing house will carry out novation.
Exchange-traded stock option has very low liquidity risk, but still exists, the suggested answer is to exclude this option錯誤The risk of counterparties on the Stock Exchange is extremely low because the clearing house will carry out novation.
Exchange-traded stock option has very low liquidity risk, but still exists, the suggested answer is to exclude this option提示
Reference Chapter:1.2.2.2
- 9/187問題
9. 問題
1 分QID1044:Which of the following is the best description about arbitragers?
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 10/187問題
10. 問題
1 分QID1045:Arbitragers rely mainly on what to profit?
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 11/187問題
11. 問題
1 分QID62:Financial markets can be classified as exchange-traded market and:
正確Financial markets are broadly categorized as being either exchange-traded or OTC.
錯誤Financial markets are broadly categorized as being either exchange-traded or OTC.
提示
Reference Chapter:1.2.3
- 12/187問題
12. 問題
1 分QID63:Which of the following activities are related to primary market:
I. Government issues bonds to raise money.
II. Firms issue new stocks.
III. Trading stocks in stock exchange
IV. Trading bonds in OTC market.正確The primary market is where new capital is raised and securities are issued for the first time. (e.g. new debt security issued by govt. or new equity securities issued by company.) Option III and IV are found in secondary markets.
錯誤The primary market is where new capital is raised and securities are issued for the first time. (e.g. new debt security issued by govt. or new equity securities issued by company.) Option III and IV are found in secondary markets.
提示
Reference Chapter:1.2.4.1
- 13/187問題
13. 問題
1 分QID64:What is the advantage of exchange-traded market over the OTC market:
I. high liquidity
II. higher resilience
III. lower credit risk
IV. more types of products正確Exchange-traded markets are those that operate via a centralized exchange, so it has higher liquidity and resilience. “Novation” operates and guarantee every transaction effectively, the credit risk is therefore lowered.
錯誤Exchange-traded markets are those that operate via a centralized exchange, so it has higher liquidity and resilience. “Novation” operates and guarantee every transaction effectively, the credit risk is therefore lowered.
提示
Reference Chapter:1.2.4.2
- 14/187問題
14. 問題
1 分QID65:Which of the following is a misstatement of secondary market?
正確The secondary market is where all subsequent trading takes place so the primary market relies on the existence of a liquid secondary market. Therefore, option C is incorrect.
錯誤The secondary market is where all subsequent trading takes place so the primary market relies on the existence of a liquid secondary market. Therefore, option C is incorrect.
提示
Reference Chapter:1.2.4.2
- 15/187問題
15. 問題
1 分QID66:What is the main products traded in exchange-traded market:
I. Stocks
II. Bonds
III. Foreign exchange
IV. OTC derivatives正確The OTC foreign exchange and derivatives are traded on OTC markets.
錯誤The OTC foreign exchange and derivatives are traded on OTC markets.
提示
Reference Chapter:1.2.4.2
- 16/187問題
16. 問題
1 分QID67:Which of the following sentence is incorrect with regard to exchange-traded market?
正確The global foreign exchange market is the biggest such market, and operates globally via a network of telephones and computer screens.
錯誤The global foreign exchange market is the biggest such market, and operates globally via a network of telephones and computer screens.
提示
Reference Chapter:1.2.4.2
- 17/187問題
17. 問題
1 分QID68:The exchange clearing house effectively guarantees every transaction in each case assuming the role of counterparty via a “novation” system, reducing which type of risk?
正確A system of “novation” operates in exchange-traded markets, whereby the exchange clearing house effectively guarantees every transaction. The credit risk is therefore lowered.
錯誤A system of “novation” operates in exchange-traded markets, whereby the exchange clearing house effectively guarantees every transaction. The credit risk is therefore lowered.
提示
Reference Chapter:1.2.4.2
- 18/187問題
18. 問題
1 分QID69:The exchange clearing house effectively guarantees every transaction in each case assuming the role of counterparty, reducing credit risk. This system is called:
正確A system of “novation” operates in exchange-traded markets, whereby the exchange clearing house effectively guarantees every transaction.
錯誤A system of “novation” operates in exchange-traded markets, whereby the exchange clearing house effectively guarantees every transaction.
提示
Reference Chapter:1.2.4.2
- 19/187問題
19. 問題
1 分QID70:The biggest OTC market is:
正確The global foreign exchange market is the biggest such market, and operates globally via a network of telephones and computer screens.
錯誤The global foreign exchange market is the biggest such market, and operates globally via a network of telephones and computer screens.
提示
Reference Chapter:1.2.4.2
- 20/187問題
20. 問題
1 分QID71:Which of the following is not equity securities?
正確Types of equity securities include: ordinary shares, preference shares, equity warrants.
錯誤Types of equity securities include: ordinary shares, preference shares, equity warrants.
提示
Reference Chapter:1.2.4.3
- 21/187問題
21. 問題
1 分QID72:What is the main assets traded in money market?
正確The market is divided into the short-term debt market, also referred to as the money market, and the
long-term debt market, or capital market. Those with a maturity of up to one year are money market.
Securities.錯誤The market is divided into the short-term debt market, also referred to as the money market, and the
long-term debt market, or capital market. Those with a maturity of up to one year are money market.
Securities.提示
Reference Chapter:1.2.4.4
- 22/187問題
22. 問題
1 分QID73:What is the main assets traded in capital market?
正確The asset with a maturity of more than a year are capital market securities (commonly
referred to as bonds).錯誤The asset with a maturity of more than a year are capital market securities (commonly
referred to as bonds).提示
Reference Chapter:1.2.4.4
- 23/187問題
23. 問題
1 分QID74:Which of the following is equity securities?
正確Types of equity securities include: ordinary shares, preference shares, equity warrants.
錯誤Types of equity securities include: ordinary shares, preference shares, equity warrants.
提示
Reference Chapter:1.2.4.3
- 24/187問題
24. 問題
1 分QID75:Which of the following statement is incorrect?
正確Debt securities with a maturity of up to one year are money market securities.
錯誤Debt securities with a maturity of up to one year are money market securities.
提示
Reference Chapter:1.2.4.4
- 25/187問題
25. 問題
1 分QID76:Which of the following assets are short-term debt securities:
I. Bankers’ acceptances
II. Certificates of deposits
III. Promissory notes
IV. Commercial papers正確Types of short-term debt securities include: bills of exchange, negotiable certificates of deposit, promissory notes/commercial papers.
錯誤Types of short-term debt securities include: bills of exchange, negotiable certificates of deposit, promissory notes/commercial papers.
提示
Reference Chapter:1.2.4.4
- 26/187問題
26. 問題
1 分QID77:Which of the following assets are long-term debt securities:
I. Bonds
II. Corporate bonds
III. floating-rate notes
IV. Mortgage-backed securities正確Types of long-term debt securities include: government bonds or notes, corporate bonds floating rate notes, mortgage-backed securities.
錯誤Types of long-term debt securities include: government bonds or notes, corporate bonds floating rate notes, mortgage-backed securities.
提示
Reference Chapter:1.2.4.4
- 27/187問題
27. 問題
1 分QID78:What is the advantage of bond-holders over stock-holders?
I. Relatively stable income
II. No need to bear risk
III.Have higher priority to receive allocated assets when liquidation
IV. Guaranteed principal payment正確The borrower of bond need to repay the principal amount at the maturity date and an interest component periodically. Since bond is a kind of debt, bond-holders have higher priority to receive allocated assets when liquidation. Default risk exists in bonds.
錯誤The borrower of bond need to repay the principal amount at the maturity date and an interest component periodically. Since bond is a kind of debt, bond-holders have higher priority to receive allocated assets when liquidation. Default risk exists in bonds.
提示
Reference Chapter:1.2.4.4
- 28/187問題
28. 問題
1 分QID79:Short-term debt securities:
正確Those debt securities with a maturity of up to one year are money market.
錯誤Those debt securities with a maturity of up to one year are money market.
提示
Reference Chapter:1.2.4.4
- 29/187問題
29. 問題
1 分QID1040:Which of the following is the most important to arbitragers?
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 30/187問題
30. 問題
1 分QID1041:Which of the following market innovation benefits arbitragers the most?
正確Un-limitation of other markets increases the investments opportunities of arbitragers. It is because they can have more chance for taking risk-free advantage of countervailing prices in different markets.
錯誤Un-limitation of other markets increases the investments opportunities of arbitragers. It is because they can have more chance for taking risk-free advantage of countervailing prices in different markets.
提示
Reference Chapter:1.3.3.2
- 31/187問題
31. 問題
1 分QID1042:Which of the following activity is arbitrage?
I. Making risk-free profit by buying stocks and selling stock futures simultaneously
II. Making risk-free profit by buying stocks in A market and selling stocks in B market simultaneously
III. Sell stocks in the stock market and then buy it back when the price declines
IV. Buy A stock and then sell B stock正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 32/187問題
32. 問題
1 分QID1043:People who rely on making risk-free profits in the market are called:
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 33/187問題
33. 問題
1 分QID2314:Buying Hang Seng Index components and then short selling it at the same time to obtain risk free profit is generally called:
正確Buying Hang Seng Index components and then short selling it at the same time to obtain risk free profit is generally called arbitrage.
錯誤Buying Hang Seng Index components and then short selling it at the same time to obtain risk free profit is generally called arbitrage.
提示
Reference Chapter:1.3.3.2
- 34/187問題
34. 問題
1 分QID2320:Which method cannot be used to increase liquidity?
正確The purpose of increasing liquidity is to make it easier for market participants to trade. Margin financing makes it easier for buyers to buy securities, hence increase liquidity. Lowering the requirement of lending makes it easier for buyers to buy securities, hence increase liquidity. Short selling allows more sellers to participate in the market, hence increase liquidity. Increasing the margin requirement makes it more difficult for buyers to participate in the market, hence decrease liquidity.
錯誤The purpose of increasing liquidity is to make it easier for market participants to trade. Margin financing makes it easier for buyers to buy securities, hence increase liquidity. Lowering the requirement of lending makes it easier for buyers to buy securities, hence increase liquidity. Short selling allows more sellers to participate in the market, hence increase liquidity. Increasing the margin requirement makes it more difficult for buyers to participate in the market, hence decrease liquidity.
提示
Reference Chapter:1.2.3
- 35/187問題
35. 問題
1 分QID2322:How do undeveloped countries benefit from globalization?
正確Increased capital flows can facilitate that developed countries provide capital-importing countries with capital and technologies, enhancing productivity and efficiency.
錯誤Increased capital flows can facilitate that developed countries provide capital-importing countries with capital and technologies, enhancing productivity and efficiency.
提示
Reference Chapter:1.3.3
- 36/187問題
36. 問題
1 分QID2324:Which of the following instrument is not debt security?
正確Forward rate agreement is the derivative to bet on the change of interest rates.
錯誤Forward rate agreement is the derivative to bet on the change of interest rates.
提示
Reference Chapter:1.2.4.4
- 37/187問題
37. 問題
1 分QID2325:Which of the following is the exchange-traded derivative?
正確All futures are traded in the exchange. Agreements and swaps etc are generally referred to over-the-counter derivatives.
錯誤All futures are traded in the exchange. Agreements and swaps etc are generally referred to over-the-counter derivatives.
提示
Reference Chapter:1.2.4.6
- 38/187問題
38. 問題
1 分QID80:Long-term debt securities:
正確Those debt securities with a maturity of more than a year are capital market securities (commonly
referred to as bonds).錯誤Those debt securities with a maturity of more than a year are capital market securities (commonly
referred to as bonds).提示
Reference Chapter:1.2.4.4
- 39/187問題
39. 問題
1 分QID81:The system where currency value is determined by market demand and supply is called:
正確Under the floating rates, market supply and demand determine the value of a currency.
錯誤Under the floating rates, market supply and demand determine the value of a currency.
提示
Reference Chapter:1.2.4.5
- 40/187問題
40. 問題
1 分QID82:The system where the government and/or their monetary authorities determine a fixed rate of exchange with other currencies is called:
正確Under the fixed rates, governments and/or their monetary authorities determine a fixed rate of exchange with other currencies.
錯誤Under the fixed rates, governments and/or their monetary authorities determine a fixed rate of exchange with other currencies.
提示
Reference Chapter:1.2.4.5
- 41/187問題
41. 問題
1 分QID83:In a floating rates regime, currency value is determined by which of the following party?
正確Under the floating rates, market supply and demand determine the value of a currency.
錯誤Under the floating rates, market supply and demand determine the value of a currency.
提示
Reference Chapter:1.2.4.5
- 42/187問題
42. 問題
1 分QID84:Derivatives include
I. Options
II. Equity warrants
III. Futures
IV. Swaps正確Derivatives include futures, forwards, swaps and options (or a combination of one or more of these categories). Equity warrants are classified as equity securities.
錯誤Derivatives include futures, forwards, swaps and options (or a combination of one or more of these categories). Equity warrants are classified as equity securities.
提示
Reference Chapter:1.2.4.6
- 43/187問題
43. 問題
1 分QID85:Which of the following is highly leveraged institution?
正確A highly leveraged institution (“HLI”) is a financial institution that employs high leverage over its asset investment. Hedge funds are currently the best-known examples.
錯誤A highly leveraged institution (“HLI”) is a financial institution that employs high leverage over its asset investment. Hedge funds are currently the best-known examples.
提示
Reference Chapter:1.2.6.5
- 44/187問題
44. 問題
1 分QID86:The characteristics of offshore financial centre are:
I. low tax rate
II. lower regulation
III. high level of secrecy
IV. sounder law system正確There are three reasons for offshore financial centres (“OFCs”) success: low taxes, less burdensome regulation and supervision, and (in most cases) strict secrecy laws protecting bank clients.
錯誤There are three reasons for offshore financial centres (“OFCs”) success: low taxes, less burdensome regulation and supervision, and (in most cases) strict secrecy laws protecting bank clients.
提示
Reference Chapter:1.2.6.6
- 45/187問題
45. 問題
1 分QID87:In which of the following institution in Hong Kong monitor credit rating agencies?
正確In 2011, the SFC introduced a regulatory framework for the provision of credit rating services in
Hong Kong.錯誤In 2011, the SFC introduced a regulatory framework for the provision of credit rating services in
Hong Kong.提示
Reference Chapter:1.2.6.7
- 46/187問題
46. 問題
1 分QID88:Sound regulation and surveillance require:
I. authority to force participants to obey laws and regulation
II. a highly liquid market
III. Providing protection for investors and depositors
IV. strict control and regulating daily operation正確Safeguards for investors and depositors and the power to enforce financial intermediaries to comply with laws and regulations.) should be included in regulation. Without dictation, information affecting liquid markets should not be controlled.
錯誤Safeguards for investors and depositors and the power to enforce financial intermediaries to comply with laws and regulations.) should be included in regulation. Without dictation, information affecting liquid markets should not be controlled.
提示
Reference Chapter:1.2.6.1
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47. 問題
1 分QID89:Which of the following problems may occur if the monitoring system is not robust:
I. The public loses confidence in financial system.
II. Liquidity decreases.
III. The financial market stagnates.
IV. The economy stagnates.正確If people do not have confidence in the financial system, they would never lend or invest funds and the financial markets (and ultimately the economy) would stagnate. The number of buyer and seller will decrease as well.
錯誤If people do not have confidence in the financial system, they would never lend or invest funds and the financial markets (and ultimately the economy) would stagnate. The number of buyer and seller will decrease as well.
提示
Reference Chapter:1.2.6.1
- 48/187問題
48. 問題
1 分QID98:Higher consumer confidence, business confidence and spending are more likely to produce:
正確Demand-pull inflation: this results when production cannot keep up with demand for goods and services. Excess demand (i.e. when productivity levels are already maximized) leads to higher
prices in the economy.錯誤Demand-pull inflation: this results when production cannot keep up with demand for goods and services. Excess demand (i.e. when productivity levels are already maximized) leads to higher
prices in the economy.提示
Reference Chapter:1.3.1.2
- 49/187問題
49. 問題
1 分QID99:Increase in wage and price may lead to:
正確Cost-push inflation: this is caused by increases in costs that translate into increases in wages and prices in the economy. Cost-push inflation can also be caused by relatively expensive imports (i.e. imported inflation).
錯誤Cost-push inflation: this is caused by increases in costs that translate into increases in wages and prices in the economy. Cost-push inflation can also be caused by relatively expensive imports (i.e. imported inflation).
提示
Reference Chapter:1.3.1.2
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50. 問題
1 分QID100:”From trough to expansion” stage in economic cycle is less likely to incur:
正確Trough to expansion: this represents economic recovery. Interest rates decrease and investment activity increases.
錯誤Trough to expansion: this represents economic recovery. Interest rates decrease and investment activity increases.
提示
Reference Chapter:1.3.1.1
- 51/187問題
51. 問題
1 分QID7:Which factor most likely determines the demand of goods and services?
正確The willingness of consumers to purchase an item is influenced by various factors while price is generally the most important factor.
錯誤The willingness of consumers to purchase an item is influenced by various factors while price is generally the most important factor.
提示
Reference Chapter:1.1.1
- 52/187問題
52. 問題
1 分QID8:Generally demand curve is:
正確Generally, the higher the price for the item, the lower the quantity demanded for it will be, and vice versa. Quantity demanded is therefore inversely related to price. Thus, demand curve is generally shown as negatively sloped curve.
錯誤Generally, the higher the price for the item, the lower the quantity demanded for it will be, and vice versa. Quantity demanded is therefore inversely related to price. Thus, demand curve is generally shown as negatively sloped curve.
提示
Reference Chapter:1.1.1
- 53/187問題
53. 問題
1 分QID9:Which factor most likely determines the supply of goods and services?
正確The objective of the producer is to make a profit from the item. Hence, the most important factor, from the producer’s perspective, is the price that can be obtained from selling the item.
錯誤The objective of the producer is to make a profit from the item. Hence, the most important factor, from the producer’s perspective, is the price that can be obtained from selling the item.
提示
Reference Chapter:1.1.1
- 54/187問題
54. 問題
1 分QID10:What’s the condition for equilibrium price?
正確The price at which quantity supplied equals quantity demanded at any given time is the “equilibrium” price for that item.
錯誤The price at which quantity supplied equals quantity demanded at any given time is the “equilibrium” price for that item.
提示
Reference Chapter:1.1.1
- 55/187問題
55. 問題
1 分QID11:What will the quantity demanded and supplied change if the price of the commodity increases?
正確Quantity demanded is inversely related to price. Thus, quantity demanded decreases when the price of the commodity increases. Oppositely, the quantity supplied is positively related to price. Thus, quantity supplied increases when the price increases.
錯誤Quantity demanded is inversely related to price. Thus, quantity demanded decreases when the price of the commodity increases. Oppositely, the quantity supplied is positively related to price. Thus, quantity supplied increases when the price increases.
提示
Reference Chapter:1.1.1
- 56/187問題
56. 問題
1 分QID12:What will the quantity demanded and supplied change if the price of the commodity decreases?
正確Quantity demanded is inversely related to price. Thus, quantity demanded increases when the price of the commodity decreases. Oppositely, the quantity supplied is positively related to price. Thus, quantity supplied decreases when the price decreases.
錯誤Quantity demanded is inversely related to price. Thus, quantity demanded increases when the price of the commodity decreases. Oppositely, the quantity supplied is positively related to price. Thus, quantity supplied decreases when the price decreases.
提示
Reference Chapter:1.1.1
- 57/187問題
57. 問題
1 分QID13:Which of the following cases is in need of indirect financing/intermediation?
正確The role of intermediaries is to channel the flow of funds between the borrowers and lenders. Therefore, indirect financing, or intermediation, occurs when the needs of borrowers and lenders do not match.
錯誤The role of intermediaries is to channel the flow of funds between the borrowers and lenders. Therefore, indirect financing, or intermediation, occurs when the needs of borrowers and lenders do not match.
提示
Reference Chapter:1.1.3
- 58/187問題
58. 問題
1 分QID14:Economic sectors include:
I. household sector
II. business sector
III. government sector
IV. overseas sector正確The economic sectors are classified as:
Household sector; Business sector; Government sector; Overseas sector; Finance sector.
錯誤The economic sectors are classified as:
Household sector; Business sector; Government sector; Overseas sector; Finance sector.
提示
Reference Chapter:1.1.2
- 59/187問題
59. 問題
1 分QID15:Generally, quantity demanded and price:
正確Generally, the higher the price for the item, the lower the quantity demanded for it will be, and vice versa. Quantity demanded is therefore inversely related to price.
錯誤Generally, the higher the price for the item, the lower the quantity demanded for it will be, and vice versa. Quantity demanded is therefore inversely related to price.
提示
Reference Chapter:1.1.1
- 60/187問題
60. 問題
1 分QID16:Generally, quantity supplied and price:
正確The objective of the producer is to make a profit from the item. Hence, the higher the price, the more the producer is willing to supply. The quantity supplied is therefore positively related to price.
錯誤The objective of the producer is to make a profit from the item. Hence, the higher the price, the more the producer is willing to supply. The quantity supplied is therefore positively related to price.
提示
Reference Chapter:1.1.1
- 61/187問題
61. 問題
1 分QID17:The household sector mainly functions as:
I. fund providers
II. fund seekers
III. buyers of goods and services
IV. sellers of goods and services正確Household sector consists of the consumers of goods and services. It is also referred to as the retail sector. The household sector spends and invests money, and mainly consists of fund providers (lenders).
錯誤Household sector consists of the consumers of goods and services. It is also referred to as the retail sector. The household sector spends and invests money, and mainly consists of fund providers (lenders).
提示
Reference Chapter:1.1.2
- 62/187問題
62. 問題
1 分QID18:The business sector mainly functions as:
I. fund providers
II. fund seekers
III. buyers of goods and services
IV. sellers of goods and services正確Business sector consists of the producers of goods and services. This sector also requires funds to produce goods and services, and the sector is therefore mainly made up of fund seekers (borrowers).
錯誤Business sector consists of the producers of goods and services. This sector also requires funds to produce goods and services, and the sector is therefore mainly made up of fund seekers (borrowers).
提示
Reference Chapter:1.1.2
- 63/187問題
63. 問題
1 分QID19:If a government has a budget surplus, it is more likely to be a:
正確Whether a government is a fund seeker or a fund provider depends on its overall budgeting position – if in surplus, it is a fund provider.
錯誤Whether a government is a fund seeker or a fund provider depends on its overall budgeting position – if in surplus, it is a fund provider.
提示
Reference Chapter:1.1.2
- 64/187問題
64. 問題
1 分QID20:If a government has a budget deficit, it is more likely to be a:
正確Whether a government is a fund seeker or a fund provider depends on its overall budgeting position – if in deficit, it is a fund seeker.
錯誤Whether a government is a fund seeker or a fund provider depends on its overall budgeting position – if in deficit, it is a fund seeker.
提示
Reference Chapter:1.1.2
- 65/187問題
65. 問題
1 分QID21:If a government issues bonds,
正確A government requires funds to meet its economic, political and social objectives (such as provision of hospitals, schools and roads), and is primarily a fund seeker.
錯誤A government requires funds to meet its economic, political and social objectives (such as provision of hospitals, schools and roads), and is primarily a fund seeker.
提示
Reference Chapter:1.1.2
- 66/187問題
66. 問題
1 分QID118:If interest rate goes up, the price of debt securities will:
正確If interest rate increases, debt securities are perceived as a less attractive investment option and investors may look to other markets for better return or lessen their exposure to debt securities.
錯誤If interest rate increases, debt securities are perceived as a less attractive investment option and investors may look to other markets for better return or lessen their exposure to debt securities.
提示
Reference Chapter:1.3.4.2
- 67/187問題
67. 問題
1 分QID119:Under globalization, which of the following statement is incorrect regarding the international flow of funds?
正確Under globalization, most economies do not exist in isolation, but as part of the global economy, relying on other countries for trade – that is, imports and exports – to borrow and lend funds and to develop domestic infrastructure by establishing new businesses in the domestic economy.
A disadvantage of this mobility, however, is that it can encourage speculative capital inflows and outflows, and cause economic and financial instability not only to individual countries, but also to entire regions; and additionally, it may also have global implications.
Some investors can find investments which takes place in other places and thus the rate of return can be enhanced.
錯誤Under globalization, most economies do not exist in isolation, but as part of the global economy, relying on other countries for trade – that is, imports and exports – to borrow and lend funds and to develop domestic infrastructure by establishing new businesses in the domestic economy.
A disadvantage of this mobility, however, is that it can encourage speculative capital inflows and outflows, and cause economic and financial instability not only to individual countries, but also to entire regions; and additionally, it may also have global implications.
Some investors can find investments which takes place in other places and thus the rate of return can be enhanced.
提示
Reference Chapter:1.3.3.2
- 68/187問題
68. 問題
1 分QID120:What is the main cause of Asian financial crisis?
正確Up to 1997, companies in the worst-hit countries had borrowed large amounts as their economies boomed, and many of these loans were in US dollars because of the lower interest rate. The exchange rates of local currencies were pegged to the US dollar, and so these companies had no fears of having to earn money in the local currency to pay back loans in US dollars. From the middle of 1995 the US dollar started to rise against most of the world’s currencies. Many Asian economies, prior to the currency crisis, tried to shadow the US dollar through central bank intervention and thus their exports became more expensive and less competitive. Inevitably, Asian countries did devalue, and stock markets plunged because it was clear many companies would have difficulty repaying US dollar loans.
錯誤Up to 1997, companies in the worst-hit countries had borrowed large amounts as their economies boomed, and many of these loans were in US dollars because of the lower interest rate. The exchange rates of local currencies were pegged to the US dollar, and so these companies had no fears of having to earn money in the local currency to pay back loans in US dollars. From the middle of 1995 the US dollar started to rise against most of the world’s currencies. Many Asian economies, prior to the currency crisis, tried to shadow the US dollar through central bank intervention and thus their exports became more expensive and less competitive. Inevitably, Asian countries did devalue, and stock markets plunged because it was clear many companies would have difficulty repaying US dollar loans.
提示
Reference Chapter:1.3.5
- 69/187問題
69. 問題
1 分QID121:What can we learn from Asian financial crisis?
I. It is important to have a robust, well-regulated and transparent financial system.
II. A financial regulatory system that can detect potential risks is needed.
III. Both government and firms should prudently manage debt.
IV. The government should provide funds for firms when needed to avoid economic crisis.正確There are some well-known lessons to be learnt from the Asian financial crisis:(1)A strong, well-regulated and transparent financial sector is important to a sustainable policy framework;
(2)It is necessary to establish an effective mechanism of economic and financial surveillance to identify potential risk;(3)Careful debt management is required to sustain both governments and corporations. Their policies and strategies must be designed to enable them to meet their debt obligations;(4)Good corporate governance is a requirement of corporate sector health, which in turn can provide the foundation of a healthy financial sector.錯誤There are some well-known lessons to be learnt from the Asian financial crisis:(1)A strong, well-regulated and transparent financial sector is important to a sustainable policy framework;
(2)It is necessary to establish an effective mechanism of economic and financial surveillance to identify potential risk;(3)Careful debt management is required to sustain both governments and corporations. Their policies and strategies must be designed to enable them to meet their debt obligations;(4)Good corporate governance is a requirement of corporate sector health, which in turn can provide the foundation of a healthy financial sector.提示
Reference Chapter:1.3.5.1
- 70/187問題
70. 問題
1 分QID122:What can we learn from the subprime crisis?
I. Investors should not solely rely on ratings to make their investment decisions.
II. Appropriate policy should strike a balance between improving consumer protection and maintaining the viability of the securitization model.
III. The government should impose less regulation and more flexibility.
IV. The government should be aware of moral hazard.正確The subprime crisis case highlights the following lessons:(1)Credit ratings for different types of obligation should be clearly distinguished, and investors should not solely rely on ratings to make their investment decisions;(2)Appropriate policy should strike a balance between improving consumer protection and maintaining the viability of the securitization model;(3)Policymakers should resist pressure for bailouts in order to reduce the danger of reinforcing speculative or fraudulent behaviour.
A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place. The subprime crisis consists of lots of Breach of contract, so the government should be aware of moral hazard.錯誤The subprime crisis case highlights the following lessons:(1)Credit ratings for different types of obligation should be clearly distinguished, and investors should not solely rely on ratings to make their investment decisions;(2)Appropriate policy should strike a balance between improving consumer protection and maintaining the viability of the securitization model;(3)Policymakers should resist pressure for bailouts in order to reduce the danger of reinforcing speculative or fraudulent behaviour.
A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place. The subprime crisis consists of lots of Breach of contract, so the government should be aware of moral hazard.提示
Reference Chapter:1.3.5.1
- 71/187問題
71. 問題
1 分QID123:If an economy whose productivity reaches its full capacity is rapidly growing and the market expects that the economy is likely to shrink in the short term, the stock price is more likely to:
正確Often news is pre-empted in the market (i.e. market expectations) and as a result the expected impact has already been factored into the prices of securities. Therefore, the prices of stocks decrease when the market expects that the economy is likely to shrink in the short term.
錯誤Often news is pre-empted in the market (i.e. market expectations) and as a result the expected impact has already been factored into the prices of securities. Therefore, the prices of stocks decrease when the market expects that the economy is likely to shrink in the short term.
提示
Reference Chapter:1.3.4.2
- 72/187問題
72. 問題
1 分QID124:The functions of Bank for International Settlements include:
I. Promoting discussion and facilitating collaboration among central banks
II. Supporting dialogue with other authorities that are responsible for promoting financial stability
III. Acting as a prime counterparty for central banks in their financial transactions
IV. Serving as an agent or trustee in connection with international financial operations正確The BIS fulfils this mission by:(1)promoting discussion and facilitating collaboration among central banks;(2)supporting dialogue with other authorities that are responsible for promoting financial stability;(3)conducting research on policy issues confronting central banks and financial supervisory authorities;(4)acting as a prime counterparty for central banks in their financial transactions; and(5)serving as an agent or trustee in connection with international financial operations.
錯誤The BIS fulfils this mission by:(1)promoting discussion and facilitating collaboration among central banks;(2)supporting dialogue with other authorities that are responsible for promoting financial stability;(3)conducting research on policy issues confronting central banks and financial supervisory authorities;(4)acting as a prime counterparty for central banks in their financial transactions; and(5)serving as an agent or trustee in connection with international financial operations.
提示
Reference Chapter:1.1.5.5
- 73/187問題
73. 問題
1 分QID125:The functions of financial intermediaries include:
I. Reducing credit risk
II. Solving international trade disputes
III. Facilitating international trade
IV. Enhancing liquidity正確Intermediaries will satisfy the exact requirements of lenders and borrowers, so that the credit risk will be lowered. The effective financing encourages international trades. Intermediaries also facilitates the efficient allocation of resources, i.e. funds may be rapidly and easily moved to where they are needed most. Thus, the mobility is enhanced.
錯誤Intermediaries will satisfy the exact requirements of lenders and borrowers, so that the credit risk will be lowered. The effective financing encourages international trades. Intermediaries also facilitates the efficient allocation of resources, i.e. funds may be rapidly and easily moved to where they are needed most. Thus, the mobility is enhanced.
提示
Reference Chapter:1.2.2.1
- 74/187問題
74. 問題
1 分QID2468:Due to the introduction of discounts by a famous car brand in Hongkong, the demand for gasoline in Hongkong increases. A company that refines petroleum (petroleum is the raw material for gasoline) has increased the production of petroleum in response to soaring sales. Which of the following descriptions are correct?
i. The price of gasoline rises
ii. The price of gasoline falls
iii. Gasoline consumption increases
iv. Gasoline consumption decreases正確The question is imperfect as it depends on the growth speed of demand and supply. If the growth rate of demand exceeds the growth rate of supply, the price will rise; otherwise, the price will fall. However, since there is no such information, the answer is estimated to be I, III according to the pattern of the examination.
錯誤The question is imperfect as it depends on the growth speed of demand and supply. If the growth rate of demand exceeds the growth rate of supply, the price will rise; otherwise, the price will fall. However, since there is no such information, the answer is estimated to be I, III according to the pattern of the examination.
提示
Reference Chapter:1.1.1
- 75/187問題
75. 問題
1 分QID2470:If Mainland China adopts a contractionary monetary policy, which of the following economic factors in Hong Kong is relatively unaffected?
正確The Hang Seng China Enterprises Index reflects the overall performance of Mainland Chinese companies listed in Hong Kong, so it has a close relationship with enterprises related to Mainland China. Monetary policy affects the supply and cost of CNY, which in turn affects the value of the currency. Therefore, the exchange rate of CNY against the Hong Kong dollar will also change. The Hang Seng Index covers many stocks that are related to China and not related to China. As for the fourth answer, since the Hong Kong dollar and the US dollar have a linked exchange rate system, the currency value of the Hong Kong dollar is directly related to the US dollar, so the Hong Kong dollar interest rate will also follow the rise and fall of the US dollar interest rate, not CNY. Therefore, Hong Kong dollar interest rate has the slightest relationship with Mainland China’s monetary policy.
錯誤The Hang Seng China Enterprises Index reflects the overall performance of Mainland Chinese companies listed in Hong Kong, so it has a close relationship with enterprises related to Mainland China. Monetary policy affects the supply and cost of CNY, which in turn affects the value of the currency. Therefore, the exchange rate of CNY against the Hong Kong dollar will also change. The Hang Seng Index covers many stocks that are related to China and not related to China. As for the fourth answer, since the Hong Kong dollar and the US dollar have a linked exchange rate system, the currency value of the Hong Kong dollar is directly related to the US dollar, so the Hong Kong dollar interest rate will also follow the rise and fall of the US dollar interest rate, not CNY. Therefore, Hong Kong dollar interest rate has the slightest relationship with Mainland China’s monetary policy.
提示
Reference Chapter:1.3.1.2
- 76/187問題
76. 問題
1 分QID32:Which of the following function does the World Bank has?
正確The World Bank help each developing country onto a path of stable, sustainable and equitable growth. Option A is the function of The BIS while option C and option D are the functions of The IMF.
錯誤The World Bank help each developing country onto a path of stable, sustainable and equitable growth. Option A is the function of The BIS while option C and option D are the functions of The IMF.
提示
Reference Chapter:1.1.5
- 77/187問題
77. 問題
1 分QID33:The major goals of World Trade Organization include:
I. to arbitrate trade disputes between countries
II. to lower trade barriers
III. to lower unemployment rate
IV. to consolidate trade quota正確The WTO is an international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
錯誤The WTO is an international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
提示
Reference Chapter:1.1.5
- 78/187問題
78. 問題
1 分QID34:The major functions of currency include:
I. Means of storing wealth
II. a path to increase wealth
III. unit against which to value other goods and services
IV. medium of exchange正確Money plays an important role in the financial system. Money acts as a
-means of storing wealth
– medium of exchange
-unit against which to value other goods and services.錯誤Money plays an important role in the financial system. Money acts as a
-means of storing wealth
– medium of exchange
-unit against which to value other goods and services.提示
Reference Chapter:1.1.6
- 79/187問題
79. 問題
1 分QID35:Money needs to be:
I. storable
II. portable
III. durable
IV. hard to obtain正確In order to fulfil its functions, money needs to be durable, storable and portable.
錯誤In order to fulfil its functions, money needs to be durable, storable and portable.
提示
Reference Chapter:1.1.6
- 80/187問題
80. 問題
1 分QID36:Narrow money represents:
正確M1 consists of all notes and coins in circulation and customers’ demand deposits placed with licensed banks (the authorized institutions in Hong Kong under the Banking Ordinance). It is collectively known as “narrow money”.
錯誤M1 consists of all notes and coins in circulation and customers’ demand deposits placed with licensed banks (the authorized institutions in Hong Kong under the Banking Ordinance). It is collectively known as “narrow money”.
提示
Reference Chapter:1.1.6
- 81/187問題
81. 問題
1 分QID37:Broad money represents:
正確M3 consists of M2 plus deposits in other financial institutions. It is collectively termed “broad money”.
錯誤M3 consists of M2 plus deposits in other financial institutions. It is collectively termed “broad money”.
提示
Reference Chapter:1.1.6
- 82/187問題
82. 問題
1 分QID38:Which of the following is not “narrow money” (M1)?
I. all notes and coins in circulation
II. customers’ demand deposits placed with licensed banks
III. savings in licensed banks
IV. time deposits accounts正確M1 consists of all notes and coins in circulation and customers’ demand deposits placed with licensed banks (the authorized institutions in Hong Kong under the Banking Ordinance).Option III and option IV are classified as M2.
錯誤M1 consists of all notes and coins in circulation and customers’ demand deposits placed with licensed banks (the authorized institutions in Hong Kong under the Banking Ordinance).Option III and option IV are classified as M2.
提示
Reference Chapter:1.1.6
- 83/187問題
83. 問題
1 分QID39:all notes and coins and customers’ demand deposits placed with licensed banks belong to which types of the following money?
I. M1
II. M2
III. M3
IV. M4正確M1 consists of all notes and coins in circulation and customers’ demand deposits placed with licensed banks. Meanwhile, M2 consists of M1 and M3 consists of M2.
錯誤M1 consists of all notes and coins in circulation and customers’ demand deposits placed with licensed banks. Meanwhile, M2 consists of M1 and M3 consists of M2.
提示
Reference Chapter:1.1.6
- 84/187問題
84. 問題
1 分QID40:Savings in licensed banks and time deposits belong to which type of the following money?
I. M1
II. M2
III. M3
IV. M4正確M2 consists of savings and time (term) deposit accounts with licensed banks while M3 consists of M2.
錯誤M2 consists of savings and time (term) deposit accounts with licensed banks while M3 consists of M2.
提示
Reference Chapter:1.1.6
- 85/187問題
85. 問題
1 分QID41:Deposits in other financial institutions belong to which type of the following money?
I. M1
II. M2
III. M3
IV. M4正確M3 consists of M2 plus deposits in other financial institutions. It is collectively termed “broad money”.
錯誤M3 consists of M2 plus deposits in other financial institutions. It is collectively termed “broad money”.
提示
Reference Chapter:1.1.6
- 86/187問題
86. 問題
1 分QID42:Money plays an important role in the financial system which includes:
I. medium of exchange
II. unit against which to value other goods and services
III. means of storing wealth
IV. keeping constant purchasing power perpetually正確Money plays an important role in the financial system. Money acts as a
– means of storing wealth
– medium of exchange
– unit against which to value other goods and services.錯誤Money plays an important role in the financial system. Money acts as a
– means of storing wealth
– medium of exchange
– unit against which to value other goods and services.提示
Reference Chapter:1.1.6
- 87/187問題
87. 問題
1 分QID43:How do banks facilitate funds circulation in financial systems?
I. move funds
II. provide investment opportunities
III. implement fiscal policy
IV. implement monetary policy正確Banks are financial intermediaries and they have an important role in facilitating the flow of funds in the banking system by performing the following functions:
1.Mobilization of funds
2.Investment opportunities
3.Implementation of monetary policy錯誤Banks are financial intermediaries and they have an important role in facilitating the flow of funds in the banking system by performing the following functions:
1.Mobilization of funds
2.Investment opportunities
3.Implementation of monetary policy提示
Reference Chapter:1.1.6
- 88/187問題
88. 問題
1 分QID44:Which of the following organization holds deposits in Bank for International Settlements?
正確The BIS offers a range of financial services specifically designed to assist central banks in the management of their foreign exchange.
錯誤The BIS offers a range of financial services specifically designed to assist central banks in the management of their foreign exchange.
提示
Reference Chapter:1.2.1
- 89/187問題
89. 問題
1 分QID45:In Hong Kong, which of the following organization holds deposits in Bank for International Settlements?
正確In Hong Kong, Hong Kong Monetary Authority plays a role as central bank. Meanwhile, the BIS offers a range of financial services specifically designed to assist central banks in the management of their foreign exchange.
錯誤In Hong Kong, Hong Kong Monetary Authority plays a role as central bank. Meanwhile, the BIS offers a range of financial services specifically designed to assist central banks in the management of their foreign exchange.
提示
Reference Chapter:1.2.1
- 90/187問題
90. 問題
1 分QID46:In Hong Kong, which of the following organization plays a role as central bank?
正確Central banks are generally the authorities responsible for regulating the monetary and banking systems, and the money supply. Hong Kong Monetary Authority also responsible for such matters in Hong Kong.
錯誤Central banks are generally the authorities responsible for regulating the monetary and banking systems, and the money supply. Hong Kong Monetary Authority also responsible for such matters in Hong Kong.
提示
Reference Chapter:1.2.1
- 91/187問題
91. 問題
1 分QID47:Generally central bank controls which of the following economic indicators?
I. Gross domestic product
II. Exchange rate
III. Interest rate
IV. Inflation rate正確Although central banks do not dictate interest and exchange rates per se, the actions they take in foreign exchange and domestic fixed income markets, particularly in the sale and purchase of government bonds, have a profound effect on financial markets.
錯誤Although central banks do not dictate interest and exchange rates per se, the actions they take in foreign exchange and domestic fixed income markets, particularly in the sale and purchase of government bonds, have a profound effect on financial markets.
提示
Reference Chapter:1.2.1
- 92/187問題
92. 問題
1 分QID48:The role of central banks include:
I. implementing monetary policy.
II. implement fiscal policy
III. monitor the banking system.
IV. maintain the stability of financial systems.正確Duties of central banks: 1) Conduct the nation’s monetary policy.2) Maintain the stability of the financial system.3) Supervise and regulate banking institutions.4) Provide financial services to certain institutions, government and public.
錯誤Duties of central banks: 1) Conduct the nation’s monetary policy.2) Maintain the stability of the financial system.3) Supervise and regulate banking institutions.4) Provide financial services to certain institutions, government and public.
提示
Reference Chapter:1.2.1
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93. 問題
1 分QID49:Which of the following statement pertaining to intermediation is correct?
正確Financial intermediaries may perform the function of “market makers”, who quote two-way prices in the market – that is, they quote a bid and an ask, so that they encourage securities trading and thus increase liquidity in the market.
錯誤Financial intermediaries may perform the function of “market makers”, who quote two-way prices in the market – that is, they quote a bid and an ask, so that they encourage securities trading and thus increase liquidity in the market.
提示
Reference Chapter:1.2.2
- 94/187問題
94. 問題
1 分QID50:Which of the following is the advantage of intermediation?
正確Intermediation transfers risk to intermediaries but additional cost to borrowers and investors. Intermediaries channel funds from where there is a surplus to where there is a deficit, this improves the efficiency of the allocation.
錯誤Intermediation transfers risk to intermediaries but additional cost to borrowers and investors. Intermediaries channel funds from where there is a surplus to where there is a deficit, this improves the efficiency of the allocation.
提示
Reference Chapter:1.2.2.3
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95. 問題
1 分QID51:What is the advantage of intermediation to lenders?
正確The main advantage of intermediation is the transfer of risk from borrowers and lenders to intermediaries. This lowers the credit risk
錯誤The main advantage of intermediation is the transfer of risk from borrowers and lenders to intermediaries. This lowers the credit risk
提示
Reference Chapter:1.2.2.2
- 96/187問題
96. 問題
1 分QID52:Intermediation matches which type of people?
正確Intermediation (indirect financing) involves third parties, financial institutions or intermediaries, acting as a link between fund providers (lenders) and fund seekers (borrowers).
錯誤Intermediation (indirect financing) involves third parties, financial institutions or intermediaries, acting as a link between fund providers (lenders) and fund seekers (borrowers).
提示
Reference Chapter:1.2.2.1
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97. 問題
1 分QID53:How does intermediation transfer credit risk?
正確Intermediation transfers risk to intermediaries but additional cost to borrowers and investors.
錯誤Intermediation transfers risk to intermediaries but additional cost to borrowers and investors.
提示
Reference Chapter:1.2.2.2
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98. 問題
1 分QID54:Which of the following is not the advantage of intermediation?
正確The main disadvantage of intermediation is the additional cost that is passed on to borrowers and investors in the form of higher interest costs, fees, brokerage or commission. Disintermediation or direct financing may be less costly.
錯誤The main disadvantage of intermediation is the additional cost that is passed on to borrowers and investors in the form of higher interest costs, fees, brokerage or commission. Disintermediation or direct financing may be less costly.
提示
Reference Chapter:1.2.2.5
- 99/187問題
99. 問題
1 分QID55:Who is the one who bears credit risk in intermediation?
正確Intermediation transfers risk to intermediaries but additional cost to borrowers and investors.
錯誤Intermediation transfers risk to intermediaries but additional cost to borrowers and investors.
提示
Reference Chapter:1.2.2.2
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100. 問題
1 分QID56:Efficient financial markets have which of the following characteristics?
I. gain information for free(symmetric information)
II. Either buyer or seller can trade without limitation.
III. Both buyer and seller are assured that payment will be exercised.
IV. strict monitor by the government to stable the financial market正確Efficient financial markets have:
1. freely available information
2.able to buy and sell freely;
3.people must be confident that payments will be honoured
4.operate with high standards of honesty, integrity and credibility.錯誤Efficient financial markets have:
1. freely available information
2.able to buy and sell freely;
3.people must be confident that payments will be honoured
4.operate with high standards of honesty, integrity and credibility.提示
Reference Chapter:1.2.3
- 101/187問題
101. 問題
1 分QID57:Effective and efficient financial market do not have which of the following characteristic?
正確Under an effective financial market, there must be an efficient payment and settlement system. Thus, buyers and sellers cannot trade without cost.
錯誤Under an effective financial market, there must be an efficient payment and settlement system. Thus, buyers and sellers cannot trade without cost.
提示
Reference Chapter:1.2.3
- 102/187問題
102. 問題
1 分QID58:Which of the following factors determines liquidity?
I. Depth
II. Spread
III. Immediacy
IV. Resilience正確Liquidity are measured by:
Depth: volume of buyers and sellers
Spread: difference between bid and ask prices
Immediacy: time taken to effect the transaction
Resilience: the speed at which prices respond to disruptions caused by large transactions錯誤Liquidity are measured by:
Depth: volume of buyers and sellers
Spread: difference between bid and ask prices
Immediacy: time taken to effect the transaction
Resilience: the speed at which prices respond to disruptions caused by large transactions提示
Reference Chapter:1.2.3
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103. 問題
1 分QID59:The characteristic of being able to trade quickly with huge amounts is called:
正確liquidity means the ease with which an investment can be converted into cash with little or no loss of capital value during the conversion, and with minimum delay.
錯誤liquidity means the ease with which an investment can be converted into cash with little or no loss of capital value during the conversion, and with minimum delay.
提示
Reference Chapter:1.2.3
- 104/187問題
104. 問題
1 分QID60:Which of the following is not a factor of effective financial markets:
I. gain information for free
II. strict monitor
III. trade with limitation
IV. high volume正確Effective financial markets require freely available (though not necessarily free) information and operate with high standards of honesty, integrity and credibility. No one will otherwise have the confidence to borrow and lend funds.
錯誤Effective financial markets require freely available (though not necessarily free) information and operate with high standards of honesty, integrity and credibility. No one will otherwise have the confidence to borrow and lend funds.
提示
Reference Chapter:1.2.3
- 105/187問題
105. 問題
1 分QID61:Financial markets can be classified as primary market and:
正確Financial markets are broadly categorized as being either primary or secondary.
錯誤Financial markets are broadly categorized as being either primary or secondary.
提示
Reference Chapter:1.2.4
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106. 問題
1 分QID90:Which stage in economic cycle best describes the following: “a decrease in economic growth, marked by a decrease in business investment and industrial production”
正確Peak to contraction: this is a decrease in economic growth, marked by a decrease in business investment and industrial production. For example, the Asian financial crisis in 1997–1998 constituted a period of peak to contraction in Hong Kong.
錯誤Peak to contraction: this is a decrease in economic growth, marked by a decrease in business investment and industrial production. For example, the Asian financial crisis in 1997–1998 constituted a period of peak to contraction in Hong Kong.
提示
Reference Chapter:1.3.1.1
- 107/187問題
107. 問題
1 分QID91:Which stage in economic cycle best describes the following: “economic recovery, interest rates decrease and investment activity increases”
正確Trough to expansion: this represents economic recovery. Interest rates decrease and investment activity increases.
錯誤Trough to expansion: this represents economic recovery. Interest rates decrease and investment activity increases.
提示
Reference Chapter:1.3.1.1
- 108/187問題
108. 問題
1 分QID101:Which stage in economic cycle best describes the following: “Household spending increases and the unemployment rate is declining”
正確Trough to expansion: this represents economic recovery.
錯誤Trough to expansion: this represents economic recovery.
提示
Reference Chapter:1.3.1.1
- 109/187問題
109. 問題
1 分QID102:Which stage in economic cycle best describes the following: “Unemployment rate is low, interest rate is increasing, and there is an economic contrarian market expectation”
正確Peak to contraction: this is a decrease in economic growth, marked by a decrease in business investment and industrial production.
錯誤Peak to contraction: this is a decrease in economic growth, marked by a decrease in business investment and industrial production.
提示
Reference Chapter:1.3.1.1
- 110/187問題
110. 問題
1 分QID103:The reasons why economies today are more resilient include:
I. Increased access to real-time information
II. Deregulation
III. Innovation in financial markets
IV. Stricter regulation正確Large quantities of data available virtually in real-time makes businesses can now address and resolve economic imbalances far more rapidly than in the past. Deregulation improve efficiency. Innovation in financial markets prevent credit failures.
錯誤Large quantities of data available virtually in real-time makes businesses can now address and resolve economic imbalances far more rapidly than in the past. Deregulation improve efficiency. Innovation in financial markets prevent credit failures.
提示
Reference Chapter:1.3.2.2
- 111/187問題
111. 問題
1 分QID104:What are the benefits of innovative modern technology to financial markets?
I. Facilitate the efficient allocation of resources
II. Higher transparency of the global financial markets
III. Increase the opportunity to arbitrage
IV. 提高投資回報正確Under innovative modern technology, large amounts of funds may be quickly and easily mobilized, the accessibility is increased and thus transparency increases and chance of arbitrage decreases. Thus, financial service providers need to find new products that can provide higher returns.
錯誤Under innovative modern technology, large amounts of funds may be quickly and easily mobilized, the accessibility is increased and thus transparency increases and chance of arbitrage decreases. Thus, financial service providers need to find new products that can provide higher returns.
提示
Reference Chapter:1.3.3.2
- 112/187問題
112. 問題
1 分QID105:Arbitrage:
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 113/187問題
113. 問題
1 分QID106:High economic growth in an economy that has reached full capacity usually results in:
正確Excess demand (i.e. when productivity levels are already maximized) leads to higher
prices in the economy.錯誤Excess demand (i.e. when productivity levels are already maximized) leads to higher
prices in the economy.提示
Reference Chapter:1.3.4.2
- 114/187問題
114. 問題
1 分QID107:Which stage in economic cycle best describes the following: “high level of inflation and high economic growth that has reached full capacity”
正確Peak to contraction: this is a decrease in economic growth, marked by a decrease in business investment and industrial production.
錯誤Peak to contraction: this is a decrease in economic growth, marked by a decrease in business investment and industrial production.
提示
Reference Chapter:1.3.1.1
- 115/187問題
115. 問題
1 分QID2502:What are the benefits of intermediation (indirect financing) for lenders?
正確Lenders refer to people who lend money to financial institutions or borrowers. Intermediation may not be able to reduce lenders’ costs, because direct financing may be more profitable and not necessarily has costs. However, there will be credit risks for direct financing for not every borrower repays the outstanding amounts totally and as scheduled. Alternatively, through intermediation, the intermediary will bear the credit risk of the borrower, so the lender can rest assured they can recover the loan and recover it more easily.
錯誤Lenders refer to people who lend money to financial institutions or borrowers. Intermediation may not be able to reduce lenders’ costs, because direct financing may be more profitable and not necessarily has costs. However, there will be credit risks for direct financing for not every borrower repays the outstanding amounts totally and as scheduled. Alternatively, through intermediation, the intermediary will bear the credit risk of the borrower, so the lender can rest assured they can recover the loan and recover it more easily.
提示
Reference Chapter:1.2.2.2
- 116/187問題
116. 問題
1 分QID108:Which of the following statement is incorrect?
正確Often news is pre-empted in the market (i.e. market expectations) and as a result the expected impact has already been factored into the prices of securities. Therefore, An economic downturn which has been already expected will not result in stock price decline.
錯誤Often news is pre-empted in the market (i.e. market expectations) and as a result the expected impact has already been factored into the prices of securities. Therefore, An economic downturn which has been already expected will not result in stock price decline.
提示
Reference Chapter:1.3.4.2
- 117/187問題
117. 問題
1 分QID109:Stagflation is defined as:
正確Deflation refers to negative inflation that occurs in an environment where the general level of prices in the economy is actually falling while the value of money is rising. This is distinct from the concept of disinflation, which refers to a fall in the inflation rate.
錯誤Deflation refers to negative inflation that occurs in an environment where the general level of prices in the economy is actually falling while the value of money is rising. This is distinct from the concept of disinflation, which refers to a fall in the inflation rate.
提示
Reference Chapter:1.3.1.2
- 118/187問題
118. 問題
1 分QID110:A phenomenon of a continuous increase in price in the past three years is called:
正確Inflation refers to the tendency for prices to continue to rise over a period of time, resulting in a decrease in the purchasing power of money – more money is needed to purchase the same value of goods and services.
錯誤Inflation refers to the tendency for prices to continue to rise over a period of time, resulting in a decrease in the purchasing power of money – more money is needed to purchase the same value of goods and services.
提示
Reference Chapter:1.3.1.2
- 119/187問題
119. 問題
1 分QID111:Which of the following is not the advantage of operating financial markets via Internet?
正確Technology effectively smoothen out time differences and enables information on markets and securities to be more readily accessible, limiting arbitrage opportunities.
錯誤Technology effectively smoothen out time differences and enables information on markets and securities to be more readily accessible, limiting arbitrage opportunities.
提示
Reference Chapter:1.3.3.2
- 120/187問題
120. 問題
1 分QID112:Which of the following is not the advantage of market globalization?
正確An example of the destabilizing effects of the mobility of funds was the Asian financial crisis in 1997–98. This regional crisis was brought about by massive short-term speculative capital flows, causing currency devaluations and economic instability in the region.
錯誤An example of the destabilizing effects of the mobility of funds was the Asian financial crisis in 1997–98. This regional crisis was brought about by massive short-term speculative capital flows, causing currency devaluations and economic instability in the region.
提示
Reference Chapter:1.3.3.1
- 121/187問題
121. 問題
1 分QID113:Which of the following is not the direct impact of globalization?
正確Technology has also facilitated the switch to electronic trading for interbank spot foreign exchange transactions. This has markedly reduced the trading volumes required to maintain an effective market.
錯誤Technology has also facilitated the switch to electronic trading for interbank spot foreign exchange transactions. This has markedly reduced the trading volumes required to maintain an effective market.
提示
Reference Chapter:1.3.3.2
- 122/187問題
122. 問題
1 分QID114:Which of the following statement is incorrect regarding flow of funds?
正確Technology effectively smoothen out time differences and enables information on markets and securities to be more readily accessible, limiting arbitrage opportunities.
錯誤Technology effectively smoothen out time differences and enables information on markets and securities to be more readily accessible, limiting arbitrage opportunities.
提示
Reference Chapter:1.3.3.2
- 123/187問題
123. 問題
1 分QID115:Which of the following are the reasons for more stable and flexible economy?
I. Decreased volatility on economic cycles
II. Effective risk management via new tools
III. Companies are more able to estimate the change of needs due to more information.
IV. Less regulation正確Economic imbalances are now more likely to be readily contained as a result of a number of factors, including increased access to real-time information, deregulation and innovation in financial and product markets. Consequently, cyclical episodes overall tend to be less severe than in the past.
錯誤Economic imbalances are now more likely to be readily contained as a result of a number of factors, including increased access to real-time information, deregulation and innovation in financial and product markets. Consequently, cyclical episodes overall tend to be less severe than in the past.
提示
Reference Chapter:1.3.2
- 124/187問題
124. 問題
1 分QID116:Which of the following statements are correct regarding globalization?
I. The development of financial derivatives lead to the flow of international fund.
II. Increased investment returns due to the flow of funds without limitation
III. Globalization doesn’t affect local markets.
IV. Increased volumes of international funds due to various big global institutional investors正確These financial products enable risk to be spread more effectively to those who are willing, and presumably able, to bear it.
The interrelationship of globalization and technology means that large amounts of funds may be quickly and easily mobilized on a global scale, via computer and telecommunication networks.
Higher mobility does not represent higher return and globalization encourages the development of local economies.
錯誤These financial products enable risk to be spread more effectively to those who are willing, and presumably able, to bear it.
The interrelationship of globalization and technology means that large amounts of funds may be quickly and easily mobilized on a global scale, via computer and telecommunication networks.
Higher mobility does not represent higher return and globalization encourages the development of local economies.
提示
Reference Chapter:1.3.3.1
- 125/187問題
125. 問題
1 分QID117:A fund is composed of 60% stocks, 30% bonds and 10% money market positions. What should a fund manager do if an economic problem of deflation is expected?
正確The future deflation means low inflation and deflation and the government is likely to cut interest rates. If the interest rate will be cut in future, the future bond yields will decline and the bond price will rise. Therefore, it is the best way to buy bonds today.
錯誤The future deflation means low inflation and deflation and the government is likely to cut interest rates. If the interest rate will be cut in future, the future bond yields will decline and the bond price will rise. Therefore, it is the best way to buy bonds today.
提示
Reference Chapter:1.3.4.2
- 126/187問題
126. 問題
1 分QID129:Which of the following factors may affect supply and demand curve?
I. Price of the goods and services
II. Level of income
III. Preferences and trends
IV. Supply of goods and services正確Price of the goods and services affects supply and demand. Level of income and Preferences and trends affect demand. Thus, these four options will affect supply and demand curve.
錯誤Price of the goods and services affects supply and demand. Level of income and Preferences and trends affect demand. Thus, these four options will affect supply and demand curve.
提示
Reference Chapter:1.1.1
- 127/187問題
127. 問題
1 分QID164:The common derivatives include:
I. Options
II. Futures
III. Swaps
IV. Commercial paper正確Commercial papers are kind of short-term debt securities.
錯誤Commercial papers are kind of short-term debt securities.
提示
Reference Chapter:1.2.4.6
- 128/187問題
128. 問題
1 分QID944:Why does inflation have a bad effect on the stock price?
正確High inflation leads to an increase in interest rate and the borrowing cost of companies increases. Therefore, the profit of the companies is affected by the increasing cost.
錯誤High inflation leads to an increase in interest rate and the borrowing cost of companies increases. Therefore, the profit of the companies is affected by the increasing cost.
提示
Reference Chapter:1.3.1.2
- 129/187問題
129. 問題
1 分QID947:If the inflation is modest, the expected inflation would also be lower. Generally, interest rate:
正確If the market expects higher inflation in the future, interest rates will also increase. If the market expects lower inflation in the future, interest rates will be lower.
錯誤If the market expects higher inflation in the future, interest rates will also increase. If the market expects lower inflation in the future, interest rates will be lower.
提示
Reference Chapter:1.3.1.2
- 130/187問題
130. 問題
1 分QID948:How can the central bank intervene if the inflation worsens?
正確When there are overheating in the economy and inflation, it is likely that the government would institute a contractionary monetary policy by increasing short-term interest rates and discouraging spending.
錯誤When there are overheating in the economy and inflation, it is likely that the government would institute a contractionary monetary policy by increasing short-term interest rates and discouraging spending.
提示
Reference Chapter:1.3.1.2
- 131/187問題
131. 問題
1 分QID949:Which of the following is not the political factor which can affect the stock market?
正確Increase the interest rate is a kind of monetary policy instead of political factor. In general, monetary policy is used to influence the supply and the cost of money.
錯誤Increase the interest rate is a kind of monetary policy instead of political factor. In general, monetary policy is used to influence the supply and the cost of money.
提示
Reference Chapter:1.3.1.3
- 132/187問題
132. 問題
1 分QID950:Which of the following events is not the political factor which can affect the stock market?
正確The introduction of the Government Bond cannot be classified as political factor.
錯誤The introduction of the Government Bond cannot be classified as political factor.
提示
Reference Chapter:1.3.1.3
- 133/187問題
133. 問題
1 分QID917:Linked exchange rate regime links:
正確Hong Kong has adopted a linked exchange rate regime, which is a variant of the fixed rate regime where the Hong Kong dollar is linked to the US dollar.
錯誤Hong Kong has adopted a linked exchange rate regime, which is a variant of the fixed rate regime where the Hong Kong dollar is linked to the US dollar.
提示
Reference Chapter:1.2.4.5
- 134/187問題
134. 問題
1 分QID1039:Mr. Liao often profits from arbitrage. However, he is upset that he can not make risk-free profit by arbitraging between Hong Kong stock market and American depository receipts. Why can’t he make the arbitrage trading?
正確Arbitrage means the ability to exploit price differences between various markets and securities and make risk-free profits at more or less the same time. Since there is time zone difference between Hong Kong stock market and American stock market, Mr. Liao can’t make the arbitrage trading.
錯誤Arbitrage means the ability to exploit price differences between various markets and securities and make risk-free profits at more or less the same time. Since there is time zone difference between Hong Kong stock market and American stock market, Mr. Liao can’t make the arbitrage trading.
提示
Reference Chapter:1.3.3.2
- 135/187問題
135. 問題
1 分QID1002:Market depth represents:
正確“Depth” reflects how easy or difficult it is for a price to be moved by small volumes. The number of buyers and sellers on different prices affects the changes of prices on small volumes.
錯誤“Depth” reflects how easy or difficult it is for a price to be moved by small volumes. The number of buyers and sellers on different prices affects the changes of prices on small volumes.
提示
Reference Chapter:1.2.3
- 136/187問題
136. 問題
1 分QID92:Which stage in economic cycle best describes the following: “a fall in inflation and private consumption expenditure and an increase in unemployment”
正確Contraction to trough: this is usually characterized by a fall in inflation and private consumption expenditure (household spending) and an increase in unemployment. For example, SARS caused the economy moving from contraction to trough in 2003-2004.
錯誤Contraction to trough: this is usually characterized by a fall in inflation and private consumption expenditure (household spending) and an increase in unemployment. For example, SARS caused the economy moving from contraction to trough in 2003-2004.
提示
Reference Chapter:1.3.1.1
- 137/187問題
137. 問題
1 分QID1086:Which of the following instrument has leverage effect?
I. Commercial paper
II. Securities margin financing
III. Stock options
IV. Preference shares正確The price paid for purchasing an option is referred to as the option premium, and is paid to the option seller. The option buyer obtain the leverage after the option premium payment. Securities margin financing is the process of securities being used as collateral to facilitate the purchase of additional exchange-traded securities. It is also a kind of leverage.
錯誤The price paid for purchasing an option is referred to as the option premium, and is paid to the option seller. The option buyer obtain the leverage after the option premium payment. Securities margin financing is the process of securities being used as collateral to facilitate the purchase of additional exchange-traded securities. It is also a kind of leverage.
提示
Reference Chapter:1.3.2.3
- 138/187問題
138. 問題
1 分QID971:The place where new capital is raised and new securities are issued is called:
正確The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
錯誤The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
提示
Reference Chapter:1.2.4.1
- 139/187問題
139. 問題
1 分QID972:Primary market allows:
正確The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
錯誤The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
提示
Reference Chapter:1.2.4.1
- 140/187問題
140. 問題
1 分QID820:Which of the following is not the reason why offshore fund is popular?
正確There are three reasons for their success: low taxes, less burdensome regulation and supervision, and (in most cases) strict secrecy laws protecting bank clients.
錯誤There are three reasons for their success: low taxes, less burdensome regulation and supervision, and (in most cases) strict secrecy laws protecting bank clients.
提示
Reference Chapter:1.2.6.6
- 141/187問題
141. 問題
1 分QID22:Which sector most likely facilitate the transfer of funds between fund providers and seekers?
正確Finance sector includes the financial intermediaries and institutions that facilitate the transfer of funds between fund providers and seekers, and is therefore both provider and seeker.
錯誤Finance sector includes the financial intermediaries and institutions that facilitate the transfer of funds between fund providers and seekers, and is therefore both provider and seeker.
提示
Reference Chapter:1.1.2
- 142/187問題
142. 問題
1 分QID23:Which of the following sector is more likely to be a fund seeker?
正確Business sector consists of the producers of goods and services. Businesses require funds to produce goods and services, and the sector is therefore mainly made up of fund seekers (borrowers).
錯誤Business sector consists of the producers of goods and services. Businesses require funds to produce goods and services, and the sector is therefore mainly made up of fund seekers (borrowers).
提示
Reference Chapter:1.1.2
- 143/187問題
143. 問題
1 分QID24:What is the advantage of intermediation?
正確Intermediaries are compensated for assuming the risk involved by receiving a fee (brokerage or commission) or by charging higher rates to borrowers than they pay to lenders.
錯誤Intermediaries are compensated for assuming the risk involved by receiving a fee (brokerage or commission) or by charging higher rates to borrowers than they pay to lenders.
提示
Reference Chapter:1.1.3
- 144/187問題
144. 問題
1 分QID25:What is the influence of globalization?
I. Investors have more suitable investment opportunities.
II. Investors have opportunity to gain higher return.
III. The rapid growth of financial products
IV. Global financial markets are getting more volatile.正確Under Globalization, investment is being unrestricted by national borders. Capital-exporting countries can earn higher return by providing services to capital-importing countries. International capital flows grew but it’s getting instable.
錯誤Under Globalization, investment is being unrestricted by national borders. Capital-exporting countries can earn higher return by providing services to capital-importing countries. International capital flows grew but it’s getting instable.
提示
Reference Chapter:1.1.4
- 145/187問題
145. 問題
1 分QID26:What is the impact of globalization on correlation among global financial markets?
正確According to the International Monetary Fund(“IMF”),The net capital flows to emerging market economies have demonstrated higher volatility than those to advanced economies, and a stronger correlation to changes in global financing conditions.
錯誤According to the International Monetary Fund(“IMF”),The net capital flows to emerging market economies have demonstrated higher volatility than those to advanced economies, and a stronger correlation to changes in global financing conditions.
提示
Reference Chapter:1.1.4
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146. 問題
1 分QID27:Which of the following is not included in supranational organizations or multilateral agencies?
正確Supranational organizations and multilateral agencies include:
The IMF; The Bank for International Settlements (“BIS”); The World Bank
;The Organisation for Economic Co-operation and Development (“OECD”); The World Trade Organization (“WTO”).錯誤Supranational organizations and multilateral agencies include:
The IMF; The Bank for International Settlements (“BIS”); The World Bank
;The Organisation for Economic Co-operation and Development (“OECD”); The World Trade Organization (“WTO”).提示
Reference Chapter:1.1.5
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147. 問題
1 分QID28:Which of the following are the functions of IMF?
I. Provide a forum for cooperation on international monetary problems
II. Maintain the stability of exchange rates
III. Lend countries foreign exchange when needed
IV. Act as a settling bank of other central banks正確The main purpose of the IMF is to provide a forum for cooperation on international monetary problems; to promote exchange rate stability; to lend countries foreign exchange when needed; and to facilitate the growth of international trade.
錯誤The main purpose of the IMF is to provide a forum for cooperation on international monetary problems; to promote exchange rate stability; to lend countries foreign exchange when needed; and to facilitate the growth of international trade.
提示
Reference Chapter:1.1.5
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148. 問題
1 分QID29:Which of the following is not the function of IMF?
正確The main purpose of the IMF is to provide a forum for cooperation on international monetary problems; to promote exchange rate stability; to lend countries foreign exchange when needed; and to facilitate the growth of international trade.
錯誤The main purpose of the IMF is to provide a forum for cooperation on international monetary problems; to promote exchange rate stability; to lend countries foreign exchange when needed; and to facilitate the growth of international trade.
提示
Reference Chapter:1.1.5
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149. 問題
1 分QID30:Which of the following multilateral agency acts as the bank of central banks?
正確Bank for International Settlements is perceived as a bank for central banks in the international financial market.
錯誤Bank for International Settlements is perceived as a bank for central banks in the international financial market.
提示
Reference Chapter:1.1.5
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150. 問題
1 分QID31:Which of the following functions does the BIS has?
I. Facilitate cooperation between central banks
II. Acting as a prime counterparty for central banks in their financial transactions
III. Serving as an agent or trustee in connection with international financial operations
IV. Maintain exchange rate stability正確The BIS is an organization that promotes international cooperation among central banks and other agencies to achieve monetary and financial stability. Maintenance of exchange rate stability is one of the missions of IMF.
錯誤The BIS is an organization that promotes international cooperation among central banks and other agencies to achieve monetary and financial stability. Maintenance of exchange rate stability is one of the missions of IMF.
提示
Reference Chapter:1.1.5
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151. 問題
1 分QID838:Which of the following asset has the lowest ability to transfer into cash(liquidity)?
正確The ease with which an investment can be converted into cash with little or no loss of capital value during the conversion, and with minimum delay. It is difficult for real estates to trade in short time.
錯誤The ease with which an investment can be converted into cash with little or no loss of capital value during the conversion, and with minimum delay. It is difficult for real estates to trade in short time.
提示
Reference Chapter:1.2.3
- 152/187問題
152. 問題
1 分QID841:Which of the following investment tool is fixed income securities?
I. Preference shares
II. Floating rate debt securities
III. Short term notes
IV. Bonds正確Fixed-income securities generally involve regular interest repayments throughout the life of the loan, and repayment of the principal (face value) amount at maturity together with the final interest instalment. Preference shareholders have priority for dividend payments over ordinary shareholders. Floating rate debt securities, short term notes and bonds will distribute coupon regularly.
錯誤Fixed-income securities generally involve regular interest repayments throughout the life of the loan, and repayment of the principal (face value) amount at maturity together with the final interest instalment. Preference shareholders have priority for dividend payments over ordinary shareholders. Floating rate debt securities, short term notes and bonds will distribute coupon regularly.
提示
Reference Chapter:1.2.4.4
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153. 問題
1 分QID995:The market for investors to trade to each other is called:
正確The secondary market is where all subsequent trading takes place.
錯誤The secondary market is where all subsequent trading takes place.
提示
Reference Chapter:1.2.4.1
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154. 問題
1 分QID997:How to describe a situation that large buyers can easily buy and sale?
正確A liquid market is one with a significant number of active buyers and sellers, so that when a specific transaction is made it does not disturb market prices very much.
錯誤A liquid market is one with a significant number of active buyers and sellers, so that when a specific transaction is made it does not disturb market prices very much.
提示
Reference Chapter:1.2.3
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155. 問題
1 分QID93:Which stage in economic cycle best describes the following: “overall economic growth. Household and business spending increases, inflation starts to grow, output is maximized and the unemployment rate is low”
正確Expansion to peak: this represents overall economic growth. Household and business spending increases, inflation starts to grow, output is maximized and the unemployment rate is low.
錯誤Expansion to peak: this represents overall economic growth. Household and business spending increases, inflation starts to grow, output is maximized and the unemployment rate is low.
提示
Reference Chapter:1.3.1.1
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156. 問題
1 分QID94:Which stage in economic cycle best describes the following: “Interest rate is declining and consumer spending is increasing.”
正確Trough to expansion: this represents economic recovery. Interest rates decrease and investment activity increases.
錯誤Trough to expansion: this represents economic recovery. Interest rates decrease and investment activity increases.
提示
Reference Chapter:1.3.1.1
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157. 問題
1 分QID95:Which of the following ways can the government intervene the short-term interest rate:
I. Open market operation
II. Intervene the foreign exchange market
III. Increase tax revenue
IV. Controls on financial institutions正確Action by the government to influence short-term interest rates is called monetary policy which is generally achieved by open market operations, intervention in the foreign exchange market, controls on financial institutions.
錯誤Action by the government to influence short-term interest rates is called monetary policy which is generally achieved by open market operations, intervention in the foreign exchange market, controls on financial institutions.
提示
Reference Chapter:1.3.1.2
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158. 問題
1 分QID96:”Core principles for effective banking supervision” is produced by:
正確In January 2007, the Basel Committee on Banking Supervision reached the decision to introduce the revised capital adequacy and international disclosure standard known as Basel II, to enhance the effectiveness of banking supervisory systems.
錯誤In January 2007, the Basel Committee on Banking Supervision reached the decision to introduce the revised capital adequacy and international disclosure standard known as Basel II, to enhance the effectiveness of banking supervisory systems.
提示
Reference Chapter:1.2.6.2
- 159/187問題
159. 問題
1 分QID97:Hedge fund is classified as:
正確A highly leveraged institution (“HLI”) is a financial institution that employs high leverage over its asset investment. Hedge funds are currently the best-known examples.
錯誤A highly leveraged institution (“HLI”) is a financial institution that employs high leverage over its asset investment. Hedge funds are currently the best-known examples.
提示
Reference Chapter:1.2.6.5
- 160/187問題
160. 問題
1 分QID1287:Which of the following factors are more likely to affect Hong Kong stocks?
I. the exchange rate in American.
II. the interest rate in American.
III. inflation in China.
IV. QDII正確The HKD is linked to the USD through the Currency Board system. Any change in the US interest rates (and therefore the value of the USD) will influence interest rates in Hong Kong and the value of the HKD against other currencies. Therefore, local stock market will also be affected. QDII will affect the capital which invest in the local capital market.
錯誤The HKD is linked to the USD through the Currency Board system. Any change in the US interest rates (and therefore the value of the USD) will influence interest rates in Hong Kong and the value of the HKD against other currencies. Therefore, local stock market will also be affected. QDII will affect the capital which invest in the local capital market.
提示
Reference Chapter:1.3.4.2
- 161/187問題
161. 問題
1 分QID223:The monetary policy of China will change due to economic crash. Which of the following indicator will be affected the least?
正確Hong Kong has adopted a linked exchange rate regime, there is an automatic stabilization mechanism whereby interest rates are adjusted to the liquidity of the banking system through the Currency Board system. Thus, the Hong Kong Interbank Offered Rate will not be affected.
錯誤Hong Kong has adopted a linked exchange rate regime, there is an automatic stabilization mechanism whereby interest rates are adjusted to the liquidity of the banking system through the Currency Board system. Thus, the Hong Kong Interbank Offered Rate will not be affected.
提示
Reference Chapter:1.2.4.5
- 162/187問題
162. 問題
1 分QID1047:The institution who is responsible for evaluating the solvency of debt-issuing entities is called:
正確In debt capital markets, financial intermediaries also make use of the research provided by CRAs, who offer advantages of scale and in-depth credit knowledge. CRAs are financial information intermediaries whose business is to identify and measure the credit risks of newly issued debt securities and to monitor their credit risk in the secondary market.
錯誤In debt capital markets, financial intermediaries also make use of the research provided by CRAs, who offer advantages of scale and in-depth credit knowledge. CRAs are financial information intermediaries whose business is to identify and measure the credit risks of newly issued debt securities and to monitor their credit risk in the secondary market.
提示
Reference Chapter:1.2.6.7
- 163/187問題
163. 問題
1 分QID1048:Credit rating agency acquire license from which of the following institution?
正確In 2011, the SFC introduced a regulatory framework for the provision of credit rating services in Hong Kong.
錯誤In 2011, the SFC introduced a regulatory framework for the provision of credit rating services in Hong Kong.
提示
Reference Chapter:1.2.6.7
- 164/187問題
164. 問題
1 分QID2347:Arbitrage mainly depends on:
正確Arbitrage mainly depends on the fact that there is an inequality between the difference between the spot price and the futures price and the holding cost when building the position. As time approaches time-to-maturity, the difference decreases.
錯誤Arbitrage mainly depends on the fact that there is an inequality between the difference between the spot price and the futures price and the holding cost when building the position. As time approaches time-to-maturity, the difference decreases.
提示
Reference Chapter:1.3.3.2
- 165/187問題
165. 問題
1 分QID980:Primary market matches which of the following two groups?
正確The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
錯誤The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
提示
Reference Chapter:1.2.4.1
- 166/187問題
166. 問題
1 分QID981:In general, companies can raise capital via which of the following ways?
I. The Main Board
II. The Growth Enterprise Market
III. Debt securities market
IV. Derivatives market正確The Main Board and The Growth Enterprise Market (equity market), debt market are referred to as “capital markets” because they involve the raising of capital.
錯誤The Main Board and The Growth Enterprise Market (equity market), debt market are referred to as “capital markets” because they involve the raising of capital.
提示
Reference Chapter:1.2.4.1
- 167/187問題
167. 問題
1 分QID996:The market for initial public offering in order to raise capital from investors is called:
正確The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
錯誤The primary market is where new capital is raised and securities are issued for the first time. For example, the government issues a new debt security or a company issues new equity securities to raise funds from the public by listing on the stock market.
提示
Reference Chapter:1.2.4.1
- 168/187問題
168. 問題
1 分QID1036:The contributions of arbitragers to the market don’t include:
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another. Arbitrage requires offsetting positions to be made at more or less the same time, so it does not affect price of the asset.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another. Arbitrage requires offsetting positions to be made at more or less the same time, so it does not affect price of the asset.
提示
Reference Chapter:1.3.3.2
- 169/187問題
169. 問題
1 分QID1037:The main contributions of arbitragers to the market include:
I. Reduce the market mispricing
II. Increase liquidity
III. Increase market efficiency
IV. Increase market volatility正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. Thus, arbitrage can reduce the market mispricing, increase liquidity, increase market efficiency.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. Thus, arbitrage can reduce the market mispricing, increase liquidity, increase market efficiency.
提示
Reference Chapter:1.3.3.2
- 170/187問題
170. 問題
1 分QID1038:Mr. Liao often make risk-free profits by taking advantage of the price difference between British depository receipts and Hong Kong stocks. Mr. Liao is more likely a:
正確Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
錯誤Arbitrage means taking risk-free advantage of countervailing prices in different markets. For example, buying an asset at a low price in one market and then selling it at the same time at a higher price in another.
提示
Reference Chapter:1.3.3.2
- 171/187問題
171. 問題
1 分QID1064:It is harder to arbitrage with stocks listed on Hong Kong and America simultaneously. What is the main reason?
正確Arbitrage means the ability to exploit price differences between various markets and securities and make risk-free profits at more or less the same time. Since there is time zone difference between Hong Kong stock market and American stock market, we can’t make the arbitrage trading.
錯誤Arbitrage means the ability to exploit price differences between various markets and securities and make risk-free profits at more or less the same time. Since there is time zone difference between Hong Kong stock market and American stock market, we can’t make the arbitrage trading.
提示
Reference Chapter:1.3.3.2
- 172/187問題
172. 問題
1 分QID1075:Which of the following investment instrument has leverage effect?
正確The price paid for purchasing an option is referred to as the option premium, and is paid to the option seller. The option buyer obtain the leverage after the option premium payment.
錯誤The price paid for purchasing an option is referred to as the option premium, and is paid to the option seller. The option buyer obtain the leverage after the option premium payment.
提示
Reference Chapter:1.3.2.3
- 173/187問題
173. 問題
1 分QID1256:Which of the following statements is correct?
正確When the currency drops, the exports become cheaper and more competitive. Thus, a decrease in exchange rate benefits exports.
錯誤When the currency drops, the exports become cheaper and more competitive. Thus, a decrease in exchange rate benefits exports.
提示
Reference Chapter:1.3.1.3
- 174/187問題
174. 問題
1 分QID2499:Which of the following organizations provides economic assistance to third world countries to promote their economic development?
正確The World Bank provides national-level development funds to help developing countries’ economic development and improve people’s living standards.
錯誤The World Bank provides national-level development funds to help developing countries’ economic development and improve people’s living standards.
提示
Reference Chapter:1.1.5.3
- 175/187問題
175. 問題
1 分QID2832:Financial intermediation mainly reduces
I. Credit risk
II. Market risk
III. Liquidity risk
IV. Interest rate risk正確Financial intermediation mainly reduces
I. Credit risk
II. Liquidity risk錯誤Financial intermediation mainly reduces
I. Credit risk
II. Liquidity risk提示
Reference Chapter:1.2.2
- 176/187問題
176. 問題
1 分QID2833:The following is a comparison of the characteristics of equity and debt. Which are correct?
I. Equity holders have the right to defined return on investment in company
II. Equity holders do not have the right to have funds repaid, but debt holders do
III. Equity holders have the right to participate in profits after service of debt obligations
IV. Equity holders have a lower priority of claim than debt holders upon liquidation of company正確Option I is wrong. There is no “defined return”. Dividends are floating. Only the coupon on the debt is generally fixed, such as 3% per annum.
錯誤Option I is wrong. There is no “defined return”. Dividends are floating. Only the coupon on the debt is generally fixed, such as 3% per annum.
提示
Reference Chapter:1.2.4.4
- 177/187問題
177. 問題
1 分QID2837:What does a bondholder get for investing in a bond?
I. Voting rights of the issuer
II. Ownership of the issuer’s shares
III. Dividends
IV. Coupons正確The issuer of fixed income securities generally pays interest on a regular basis during the term of the loan, and repays the principal and subsequent interest on the maturity date. The fixed amount of interest is called coupon.
錯誤The issuer of fixed income securities generally pays interest on a regular basis during the term of the loan, and repays the principal and subsequent interest on the maturity date. The fixed amount of interest is called coupon.
提示
Reference Chapter:1.2.4.4
- 178/187問題
178. 問題
1 分QID2838:Which of the following is true about the features of debt?
I. Lenders are entitled to a given return (interest), which is defined in the loan documentation, including the right of recourse to the residual value after repayment to the lender
II. Lenders are also entitled to be repaid their money in a way that is defined in the loan documentation
III. Lenders normally have the right to vote on issues related to the administration of the company
IV. In the event of liquidation, lenders are entitled to priority over shareholders in claiming on the assets of the company正確Shareholders, not lenders, are entitled to a given return (interest), which is defined in the loan documentation, including the right of recourse to the residual value after repayment to the lender.
Shareholders, not lenders, normally have the right to vote on issues related to the administration of the company.
錯誤Shareholders, not lenders, are entitled to a given return (interest), which is defined in the loan documentation, including the right of recourse to the residual value after repayment to the lender.
Shareholders, not lenders, normally have the right to vote on issues related to the administration of the company.
提示
Reference Chapter:1.2.4.4
- 179/187問題
179. 問題
1 分QID2841:Which of the following statements about financial intermediation is appropriate?
I. An intermediary is an agent that facilitates the flow of funds between lenders and borrowers
II. The capital borrower shall assume the credit risk of the intermediary financing process
III. Households are one example of financial intermediaries
IV. Banks are typical financial intermediaries正確II is wrong. For the bank, customers deposit money and others need to borrow money. The bank acts as the intermediary.
How can depositors be put on the line when the risk is borne by the bank in case of default?In III, households are not financial intermediaries; intermediaries are primarily banks.
錯誤II is wrong. For the bank, customers deposit money and others need to borrow money. The bank acts as the intermediary.
How can depositors be put on the line when the risk is borne by the bank in case of default?In III, households are not financial intermediaries; intermediaries are primarily banks.
提示
Reference Chapter:1.2.2
- 180/187問題
180. 問題
1 分QID2855:Which of the following statements about direct financing and indirect financing is not true?
正確Corporate finance involves both direct and indirect financing.
錯誤Corporate finance involves both direct and indirect financing.
提示
Reference Chapter:1.2.2
- 181/187問題
181. 問題
1 分QID2866:As financial intermediaries, “banks” can facilitate the liquidity of funds in the financial system through which of the following means?
I. Conduct monetary policy
II. Provide investment opportunities
III. Provide mechanisms for mobilizing wholesale and retail funds正確In theory, it is surely the responsibility of the central bank to “formulate” monetary policy, and to “implement” monetary policy. The role of financial intermediaries is to facilitate the liquidity of funds through the financial system. Banks are financial intermediaries. Banks play an important role in facilitating the liquidity of capital through the banking system by performing the following functions: Capital mobilisation–Banks facilitate the mobilisation of wholesale and retail funds, thereby improving the efficiency of the allocation of funds. Investment opportunities—Banks can allow investors to create wealth by saving money, or change their portfolios to participate in other financial markets. Conduct monetary policy—Most governments conduct monetary policy through the banking system.
錯誤In theory, it is surely the responsibility of the central bank to “formulate” monetary policy, and to “implement” monetary policy. The role of financial intermediaries is to facilitate the liquidity of funds through the financial system. Banks are financial intermediaries. Banks play an important role in facilitating the liquidity of capital through the banking system by performing the following functions: Capital mobilisation–Banks facilitate the mobilisation of wholesale and retail funds, thereby improving the efficiency of the allocation of funds. Investment opportunities—Banks can allow investors to create wealth by saving money, or change their portfolios to participate in other financial markets. Conduct monetary policy—Most governments conduct monetary policy through the banking system.
提示
Reference Chapter:1.2.2
- 182/187問題
182. 問題
1 分QID2873:Which of the following is not an advantage of intermediary financing?
正確D) is obvious wrong. How can financial intermediaries, such as banks, not have credit risks? There must be. Intermediary financing promotes the pairing of borrowers and lenders, and its advantages include:
I.Transfer risks from borrowers/lenders to financial intermediaries that employ professionals to measure, manage and monitor risks
II. Gain economic benefits and spread the costs
III.Financial intermediaries act as makers and can increase the amount of liquidity in the market錯誤D) is obvious wrong. How can financial intermediaries, such as banks, not have credit risks? There must be. Intermediary financing promotes the pairing of borrowers and lenders, and its advantages include:
I.Transfer risks from borrowers/lenders to financial intermediaries that employ professionals to measure, manage and monitor risks
II. Gain economic benefits and spread the costs
III.Financial intermediaries act as makers and can increase the amount of liquidity in the market提示
Reference Chapter:1.2.2
- 183/187問題
183. 問題
1 分QID2874:In order to meet the redemption of investors, when the liquidity of individual stocks is poor, the fund manager is forced to sell a large number of stocks or bonds at an inappropriate price. This risk is called ().
正確The liquidity risk of fund investment is mainly manifested in two aspects: (1) when the fund manager takes a position or adjusts the portfolio to achieve investment income, it may be unable to buy or sell stocks or bonds at the expected price due to the relative lack of market liquidity of individual stocks; ② In order to meet the redemption of investors, when the liquidity of individual stocks is poor, fund managers are forced to sell a large number of stocks or bonds at inappropriate prices.
錯誤The liquidity risk of fund investment is mainly manifested in two aspects: (1) when the fund manager takes a position or adjusts the portfolio to achieve investment income, it may be unable to buy or sell stocks or bonds at the expected price due to the relative lack of market liquidity of individual stocks; ② In order to meet the redemption of investors, when the liquidity of individual stocks is poor, fund managers are forced to sell a large number of stocks or bonds at inappropriate prices.
提示
Reference Chapter:1.2.2.2
- 184/187問題
184. 問題
1 分QID2875:As financial intermediaries, what functions do banks normally facilitate the liquidity of funds in the banking system?
I. Implementing tax policies
II. Provide savings and various other investment products to provide investment opportunities for customers
III. Implementing monetary policies
IV. Implementing fiscal policies正確Banks are incapable of conducting fiscal policies, and they are incapable of conducting tax policies.
Banks are financial intermediaries. Banks play an important role in facilitating the liquidity of funds through the banking system by performing the following functions.
Capital mobilisation: Banks help mobilise wholesale and retail funds, thereby improving the efficiency of capital allocation.
Investment opportunities: Banks can allow investors to create wealth by saving money, or change their portfolios to participate in other financial markets.
Conduct monetary policies: Most governments conduct monetary policies through the banking system.錯誤Banks are incapable of conducting fiscal policies, and they are incapable of conducting tax policies.
Banks are financial intermediaries. Banks play an important role in facilitating the liquidity of funds through the banking system by performing the following functions.
Capital mobilisation: Banks help mobilise wholesale and retail funds, thereby improving the efficiency of capital allocation.
Investment opportunities: Banks can allow investors to create wealth by saving money, or change their portfolios to participate in other financial markets.
Conduct monetary policies: Most governments conduct monetary policies through the banking system.提示
Reference Chapter:1.2.2
- 185/187問題
185. 問題
1 分QID2876:Which of the following statements about financial markets and intermediaries is not true?
正確Borrowers can use financial intermediaries to get suitable loans without the cost of finding the right lender. But they have to pay higher borrowing costs. Banks also have to make money.
錯誤Borrowers can use financial intermediaries to get suitable loans without the cost of finding the right lender. But they have to pay higher borrowing costs. Banks also have to make money.
提示
Reference Chapter:1.2.2
- 186/187問題
186. 問題
1 分QID2879:Which of the following statements about direct financing and indirect financing is not true?
正確Indirect financing involves the transfer of funds from FSU to FDU through middlemen,
the financial intermediaries.錯誤Indirect financing involves the transfer of funds from FSU to FDU through middlemen,
the financial intermediaries.提示
Reference Chapter:1.2.2.1
- 187/187問題
187. 問題
1 分QID2884:Which of the following best describes the “low liquidity”?
正確It is very simple to understand that low liquidity means that the goods are poor, or the price has to be low to sell; Or the goods are very good but you have to pay a high price to buy. A critical issue on all securities markets is liquidity. If a market participant cannot easily find a
buyer or seller for his securities, confidence in the market will be jeopardised, and trading will be adversely affected. Liquidity for financial markets comprises three issues:
(1) the extent to which buyers and sellers can, at all times when the market is operating, obtain prices for securities that reflect the market’s assessment of the underlying value of those securities;
(2) the extent to which buyers and sellers can, at all times when the market is operating, obtain sellers and buyers in reasonable volumes at those prices; and
(3) the extent to which there is a sufficiently wide range of securities traded, so that investors can acquire a wide enough spread of investments and thus be able to achieve their desired balance of risks.錯誤It is very simple to understand that low liquidity means that the goods are poor, or the price has to be low to sell; Or the goods are very good but you have to pay a high price to buy. A critical issue on all securities markets is liquidity. If a market participant cannot easily find a
buyer or seller for his securities, confidence in the market will be jeopardised, and trading will be adversely affected. Liquidity for financial markets comprises three issues:
(1) the extent to which buyers and sellers can, at all times when the market is operating, obtain prices for securities that reflect the market’s assessment of the underlying value of those securities;
(2) the extent to which buyers and sellers can, at all times when the market is operating, obtain sellers and buyers in reasonable volumes at those prices; and
(3) the extent to which there is a sufficiently wide range of securities traded, so that investors can acquire a wide enough spread of investments and thus be able to achieve their desired balance of risks.提示
Reference Chapter:1.2.3
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