1．The velocity of money is determined by the central bank．
　　True　False
　　2．A multiple increase in GNP could result from an initial increase in the stock of money．
　　True　False
　　3．It is primarily the central bank that determines the size and the structure of Ml， that is， how much of that total will be in demand deposits and how much in currency．
　　True　False
　　4．Money may be tight if the money supply grows at a faster rate than the demand for money．
　　True　False
　　5．Inflation is defined as an increase in the general level of prices for goods and services．
　　True　False
　　6．A provision for loan loss results in less net income for a bank on a bank’s income statement．
　　True　False
　　7．One of the important factors leading to the growth of financial intermediaries has been the decreased cost of information and analysis of direct securities．
　　True　False
　　8．Financial intermediaries are financial institutions that issue claims against themselves and use the proceeds to acquire financial claims against others．
　　True　False
　　9．Unlike commercial banks， other depository financial intermediaries do not have to be much concerned with excess withdrawals of their deposits since they do not have to pay on demand by a depositor．
　　True　False
　　10．An example of a non－depository financial intermediary is an insurance company．来 True False
　　11．Bond market prices and interest rates are directly related．
　　True　False
　　12．In its open market operations， the Federal Reserve deals exclusively with commercial banks．
　　True　False
　　13．Investors of bonds are quite clear about the exact amount of cash they will get back， provided they hold these securities until maturity．
　　True　False
　　14．The stock price of a company is its value．
　　True　False
　　15．Buying a mutual fund based solely on its past performance is a good strategy．
　　True　False
　　16．Return of an investment takes two forms： income and capital gain．
　　True　False
　　17．Corporate bonds that include a call provision can be exchanged into common stocks of the company that has issued them．This exchange is made at a predetermined price．
　　True　False
　　18．The return stockholders will receive on their investment will depend on future dividend payments and expected stock price appreciation．Their investment is risky， because future cash dividends are variable and capital gains are uncertain．
　　True　False
　　19．Common stockholders get a fixed dividend and they are entitled to it before preferred stockholders receive any dividend．
　　True False
　　20．Revenue bonds are usually of higher quality than general obligation bonds， because they are issued to finance specific projects and are fully backed by the income these projects will generate in the future．
　　True　False
　　21．Financial innovation refers to the process that gives birth to new financial institutions， markets，and products．
　　True　False
　　22．An important distinction between "direct" and "indirect" securities is that the former are issued by financial intermediaries while the latter are not．
　　True　False
　　23．Inflation generally favors creditors at the expense of debtors．
　　True　False
　　24．An asset that is readily convertible into cash is thereby highly liquid．
　　True　False
　　25．If a bond is capitalized over a period greater than one year （one period）， it involves the calculation of compound interest．
　　True　False26．As a general rule， the shorter the maturity of an asset and the more readily it can be sold， the more liquid is the asset．
　　True　False