2014SpringMidtermG

Topics: Money, Supply and demand, Economics Pages: 2 (2017 words) Published: March 13, 2015
C.U.H.K. ECON1420B/UGEC1560QB Basic Banking and Finance (Spring 2014 Midterm Test) NAME: ____________________________________(______________________) Student I.D.: s_________________ Part I: M.C. – Select the best answer and write the letter into corresponding box for each question. (@ 2 points)

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1. Financial markets can channel savings to ___.
A) income
B) investments

C.U.H.K. ECON1420B/UGEC1560QB Basic Banking and Finance (Spring 2014 Midterm Test)

16. The current yield is the ___ divided by the price.
A) yield
B) face value
C) annual dividend

D) annual payment

Social responsibility of a company involves ___. A) employer
B) employees
C) customers

D) all of the above

18. ___ of money can facilitate transaction in small quantities. A) Liquidity
B) Durability
C) Accountability

D) Divisibility



The security market line (SML) is simply a plot of expected returns of investments with respect to its beta, the ___ of the investment to the market portfolio.
A) covariance
B) risk
C) correlation
D) sensitivity
20. ___ analysis compares companies across the industry or with companies in other industries. A) Longitudinal
B) Cross-sectional C) Technical
D) Return

C) intercept

D) information

2. Financial markets can improve economic efficiency through the ___ discovery. A) bank
B) money
C) welfare
D) price
3. Exchange Fund Bills and Notes are Hong Kong dollar ___ issued by Hong Kong Monetary Authority. A) papers
B) votes
C) shares
D) debt securities
4. Hong Kong has launched an ___-linked retail bond (iBond) which is basically ___–free. A) Inflation, tax
B) Interest, tax
C) Inflation, risk
D) Interest, risk
5. In financial markets, funds are...
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