金融市场与机构课后习题答案解析.doc

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1、Chapter1/RoleofFinancialMarketsandInstitutionsE71Chapter1RoleofFinancialMarketsandInstitutionsQuestions1.Explainthemeaningofsurplusunitsanddeficitunits.Provideanexampleofeach.ANSWER:Surplusunitsprovidefundstothefinancialmarketswhiledeficitunitsobtainfundsfromthefin

2、ancialmarkets.Surplusunitsincludehouseholdswithsavings,whiledeficitunitsincludefirmsorgovernmentagenciesthatborrowfunds.2.Distinguishbetweenprimaryandsecondarymarkets.ANSWER:Primarymarketsareusedfortheissuanceofnewsecuritieswhilesecondarymarketsareusedforthetrading

3、ofexistingsecurities.3.Distinguishbetweenmoneyandcapitalmarkets.ANSWER:Moneymarketsfacilitatethetradingofshort-term(moneymarket)instrumentswhilecapitalmarketsfacilitatethetradingoflong-term(capitalmarket)instruments.4.Distinguishbetweenperfectandimperfectsecurityma

4、rkets.ANSWER:Withperfectfinancialmarkets,allinformationaboutanysecuritiesforsalewouldbefreelyavailabletoinvestors,informationaboutsurplusanddeficitunitswouldbefreelyavailable,andallsecuritiescouldbeunbundledintoanysizedesired.Inreality,marketsareimperfect,sothatsur

5、plusanddeficitunitsdonothavefreeaccesstoinformation,andsecuritiescannotbeunbundledasdesired.5.Explainwhytheexistenceofimperfectmarketscreatesaneedforfinancialinstitutions.ANSWER:Financialintermediariesareneededtofacilitatetheexchangeoffundsbetweensurplusanddeficitu

6、nits.Theyhavetheinformationtoprovidethisserviceandcanevenrepackagedepositstoprovidetheamountoffundsborrowersdesire.6.Explainthemeaningofefficientmarkets.Whymightweexpectmarketstobeefficientmostofthetime?ANSWER:Ifmarketsareefficientthenpricesofsecuritiesavailableint

7、hesemarketsproperlyreflectallinformation.Weshouldexpectmarketstobeefficientbecauseiftheyweren't,investorswouldcapitalizeonthediscrepancybetweenwhatpricesareandwhattheyshouldbe.Thisactionwouldforcemarketpricestorepresenttheappropriatepricesasperceivedbythemarket.7.I

8、nrecentyears,severalsecuritiesfirmshavebeenguiltyofusinginsideinformationwhenpurchasingsecurities,therebyachievingreturnswellabovethenorm(evenwhe