Financial Market Review Questions
1.
1. The intangible market has no specific trading place and is also called over-the-counter trading.
2. How much commission does an intermediary agency that acts as an agent for buying and selling bonds generally charge from both buyers and sellers equivalent to the face value of the bond?
Answer: 2 out of 10,000
3. What are fund managers called in my country?
Answer: Fund management company
4. What types of basic analysis of securities investment include?
Answer: Macroeconomic analysis, industry analysis, corporate value analysis
5. The earliest securities issued in history were bonds.
6. Which of the spot foreign exchange trading methods has the highest exchange rate?
Answer: The wire transfer exchange rate is the highest
7. Systemic risks can be eliminated by diversifying investments, while non-systematic risks cannot be eliminated by diversifying investments.
8. The object of the financial market refers to the transaction object of the financial market.
9. There are two types of securities investment methods: basic analysis and technology.
10. my country’s securities regulations stipulate that the total share capital of a publicly issued company must not be less than?
Answer: 50 million yuan.
11. The world's largest gold market, the London Gold Market.
12. The oldest financial market is the gold market.
13. Compound interest rate can better reflect the time value of money.
14. The China Securities Regulatory Commission unifiedly manages my country’s securities and futures markets.
15. Compared with indirect financing, what are the advantages of direct financing?
Answer: (1) The supply and demand sides of funds are closely connected, which is conducive to the rapid and reasonable allocation of funds and the improvement of use efficiency. (2) The costs for fundraisers are lower, while the returns for investors are higher.
16. In my country, the main regulators of the banking industry are the People's Bank of China and the China Banking Regulatory Commission.
17. Briefly describe the main differences between securities and stocks?
Answer: (1) The relationships indicated are different. Bonds are debt certificates; stocks are equity certificates. (2) Investors have different rights and obligations. (3) The determination of income is different.
18. A promissory note is a stock issued by the drawer who agrees to unconditionally pay a certain amount of money to the payee or shareholder on a specified date.
19. Briefly describe the tools used by the central bank to implement monetary policy?
Answer: Rediscount rate, open market business.
20. What are the basic principles of financial market supervision?
Summarizing the practical experience of various countries, financial market supervision generally follows the following principles:
Answer: (1) Principle of comprehensiveness (2) Principle of efficiency (3) Principle of openness, fairness and impartiality .
21. According to the difference in equity of shareholders, stocks can be divided into ordinary shares and preferred shares.
22. What are the basic pricing methods for exchange rates?
Answer: (1) Direct pricing method (2) Indirect pricing method
23. What are the new characteristics of financial markets?
Answer: Electronicization, liberalization, virtualization, and globalization.
24. What are the derivative financial instruments?
Answer: Financial forwards, financial futures, financial options, financial swaps
25. The commercial bill market can Divided into acceptance market, discount market and rediscount market?
Answer: The bill market can be subdivided into the discount market, commercial bill market and bank acceptance bill market.
26. The money market refers to the short-term financial market in which financial assets with a maturity of less than one year are the subject matter of transactions.
27. What is the main reason why commercial banks conduct inter-bank lending?
Answer: Adjust positions. Position refers to the difference after the balance of income and expenditure. If the income is greater than the balance, it is called a position surplus, and if the income is not less than the balance, it is a short position.
28. What are the functions of bond investment funds?
Answer: Value-added and value-preserved
29. The world’s largest gold market is the London Gold Market.
30. In the foreign exchange market, the difference between the forward exchange rate and the spot exchange rate is called premium, and the difference between the forward exchange rate and the spot exchange rate is called discount.
31. Financial assets refer to assets in the form of value owned by units or individuals, and are a right to claim physical assets.
32. Securities investment funds can be divided into corporate funds and contract funds according to their organizational forms.
33. The theory of financial market supervision is based on the public interest theory, financial risk and bond protection theory.
34. The operating risks in offshore financial markets are usually higher than those in onshore finance.
35. Who first proposed the wave theory?
Answer: Professor Eliot proposed it in 1939.
36. The market risk prevention mechanism for futures trading is price limit.
37. The fund is issued based on the par price of the net value of each fund unit. Can this D-class special-grade bond fulfill its repayment obligations?
Answer: No.
38. What are the elements that constitute the financial market?
Answer: Financial market participants, financial market trading tools, financial market intermediaries, financial market prices.
39. How many shares are the “one-lot” trading unit on the Shanghai and Shenzhen Stock Exchanges in my country?
Answer: 100 shares
40. What are the methods of financial market management?
Answer: Economic means, legal means, administrative means.
41. Dividends can be divided into dividends and dividends.
42. The risk of asset portfolio is divided into systematic risk and unsystematic risk.
43. What are the characteristics of the modern foreign exchange market?
Answer: Globalization, complexity, and integration.
44. A shares denominated in one RMB are limited to stocks issued, listed and traded in mainland China.
45. Financial forwards are the earliest derivative financial instruments.
46. How long is the maximum limit for all lending in the peer lending market?
Answer: 1 year.
47. The delivery method for treasury bond over-the-counter transactions is T+1.
48. What is the management system for fund initiation and establishment currently implemented in my country?
Answer: Approval system.
49. The oldest world financial center in history is the London Financial Center.
50. What are the characteristics of short-term government bonds?
Answer: The lowest risk and the highest liquidity.
51. What is the risk that the debtor will not perform the contract and return the principal on time?
Answer: Credit risk.
52. The most important purpose of derivative financial instruments is to maintain value.
53. The current trading method in my country’s stock circulation market is spot trading only.
54. Among the major participants in the foreign exchange market, commercial banks are at the core.
55. The originator of technical analysis of securities investment is Dow Theory.
56. Management in the foreign exchange market can be divided into quantity management, price management, and comprehensive management.
57. Is the registration system a substantive management principle?
Answer: No. The approval system is the implementation of substantive management
58. What is the earliest subject matter of a futures contract?
Answer: Agricultural products.
59. What are the two accounts opened by customers at the securities exchange?
Answer: Cash account, margin account.
60. RMB indicates the par value of stocks. Which stocks are exclusively available for subscription and trading by investors in Hong Kong, Macau, Taiwan and foreign countries?
Answer: B shares.
61. In the financial market, who are the participants in the issuance of financial instruments?
Answer: Government, financial institutions, and various non-financial enterprises.
62. What are the characteristics of derivative financial instruments?
Answer: Derivative, leverage, high risk, and virtuality.
63. What is the specific form of the direct management system of the foreign exchange market?
Answer: Adopt the statutory differential exchange rate system, the foreign exchange transfer certificate system and the mixed exchange rate system.
64. What are the principles of securities investment?
Answer: (1) Risk-return balance principle (2) Two-sided principle of transaction (3) Free-rider principle (4) Information transmission principle
65. What are the derivative financial instruments?
Answer: Financial forwards, financial futures, financial options, financial swaps
66. my country’s financial industry self-regulatory institutions mainly include stock exchanges, securities industry associations and banks industry association.
67. What are the methods of securities investment?
Answer: 1. Basic analysis method 2. Technical analysis method
68. Among the indicators that reflect the company’s ability to repay short-term debt, which indicator better reflects the company’s short-term repayment ability? ?
Answer: Liquidity ratio.
69. What are the new characteristics of financial markets?
Answer: Electronicization, liberalization, virtualization, and globalization.
70. The commercial bill market can be divided into acceptance market, discount market and rediscount market.
71. Which level of credit rating is the highest?
Answer: AAA level
72. What is the main reason why commercial banks conduct inter-bank lending?
Answer: Adjust positions. Position refers to the difference after the balance of income and expenditure. If the income is greater than the balance, it is called a position surplus, and if the income is not less than the balance, it is a short position.
73. The largest gold market in the world is the London Gold Market.
74. Financial assets refer to assets in the form of value owned by units or individuals, and are a right to claim physical assets.
75. What are the organizational forms of securities investment funds?
Answer: Corporate funds and contract funds.
2. Explanation of terms
Institutional investors - legal entities engaged in securities investment in the financial market, mainly including insurance companies, pension funds and investment funds, securities companies, banks, etc.
Eurodollars – U.S. dollar deposits held in banks outside the United States or U.S. dollar loans borrowed from such banks. Because of this offshore U.S. dollar deposits, lending activities began in Europe, hence the name Eurodollars.
Mortgage corporate bonds - bonds issued by the issuing company with real or personal property as collateral.
Systematic risk - refers to the risk that cannot be eliminated by increasing the types of assets held.
Currency Broker - Currency broker, also known as money market trading broker, refers to an intermediary who acts as an intermediary for both parties in the currency market and collects commissions.
The direct pricing method is a pricing method that uses a certain unit of domestic currency as the standard and uses the amount of foreign currency converted to express the exchange rate. It is also called the "receivables pricing method". Its core content is "the local currency does not Move foreign currency."
Open forward contract - is a relatively simple financial derivative instrument. The parties to the contract agree to buy or sell an agreed quantity of financial assets at an agreed price in a certain period in the future.
The bill discount market - refers to the market where banks, discount companies and other financial institutions purchase undue bills at a discount to provide short-term funds to shareholders.
The interbank lending market is a market formed by short-term capital lending activities between various financial institutions (including commercial banks and non-bank financial institutions).
Forward interest rate agreement is a transaction in which both parties promise to borrow a certain amount of nominal principal at a certain interest rate within an agreed period of time.
Closed-end funds - also known as fixed-end funds, refer to funds that have completed the issuance of a predetermined number of fund securities and the size of the funds will not increase or decrease within a specified time (also known as the "closed period") Securities investment funds.
Offshore finance - refers to investment funds in which a country's securities fund organization issues securities fund units in other countries and invests the raised funds in the securities markets of various countries.
Short-term government bonds - refer to short-term bonds issued by governments at all levels or units provided credit guarantees by the government. They are short-term credit certificates for which the government assumes repayment responsibility.
Public offering - Public offering, also known as public offering, refers to the direct public sale of stocks and other securities to the public without limiting subscription targets.
Private placement - Private placement issuance, also known as non-public issuance, refers to the way in which the issuer only issues stocks to specific issuance objects.
Financial swap - is an agreement between the two parties to exchange a series of cash with each other based on a predetermined nominal principal amount and an agreed payment rate (interest rate, stock index yield, etc.) within the validity period of the contract. Streaming contracts.
Expected rate of return - is to estimate various possible outcomes of future rate of return, and then use the probability of their occurrence to make a weighted average of these estimates.
3.
1. Compared with indirect financing, what are the limitations of direct financing?
(1) In terms of fund quantity, term, interest rate, etc., direct financing is subject to more restrictions than indirect financing.
(2) In developed countries or regions with underdeveloped financial markets, the liquidity of financial instruments used for direct financing is weaker than that of financial instruments used for indirect financing.
(3) For capital suppliers, the risk of direct financing is greater than the risk of indirect financing.
2. What are the basic elements of bonds?
Generally speaking, a bond mainly consists of maturity, principal, face value, price, interest rate, yield and repayment method, etc.
3. The main differences between bonds and stocks What are the differences?
The relationships indicated by (1) are different. Bonds are debt certificates; stocks are equity certificates.
(2) Investors have different rights and obligations.
(3) The determination of income is different.
4. Briefly describe the form of bond trading?
Answer: Spot trading, futures trading, and repurchase agreement trading.
5. What are the main functions of my country’s financial market?
(1) Facilitate investment and financing
(2) Reasonably guide the direction and flow of funds, promote capital concentration and transfer to high-efficiency units
(3) Facilitate the flexible transformation of funds
(4) Achieve risk diversification and reduce transaction costs
(5) Help enhance the flexibility of macro-control
(6) It is conducive to strengthening economic ties between departments, regions and countries
6. What is the main basis for determining the coupon rate of bonds?
(1) The length of the bond period
(2) The credit rating of the bond
(3) The number of interest payments
(4 ) Bank interest rate levels for the same period and current market interest rates
(5) Large acceptance by investors
(6) Current regulations on bond coupon rates by the bond authority
7. What are the characteristics of securities investment funds?
(1) Diversify investments and spread risks
(2) Expert management and scientific management
(3) High liquidity and strong liquidity
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(4) Scale operations and reduce costs
8. What are the sources of income for securities investment funds?
Answer: Interest income, dividends and dividend income, capital gains, capital appreciation.
9. What is the role of the foreign exchange market?
(1) Realize the international transfer of purchasing power
(2) Provide financing for international economic transactions
(3) Provide a place for foreign exchange hedging and speculation
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10. What is the role of the foreign exchange market?
(1) Realize the international transfer of purchasing power
(2) Provide financing for international economic transactions
(3) Provide a place for foreign exchange hedging and speculation
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11. What are the basic steps of portfolio management?
(1) Specify investment policy (2) Select investment assets (3) Build an investment portfolio (4) Adjust the investment portfolio
(5) Evaluate the performance of the investment portfolio
12. Why are negotiable large-amount certificates of deposit a good financial tool for banks and investors?
(1) The emergence of large-denomination certificates of deposit eliminates the need for commercial banks to passively wait for customers to deposit deposits. Commercial banks can take a proactive approach by issuing large-denomination certificates of deposit in the market to raise funds, or they can also proactively Asset and liability management.
(2) Large-denomination certificates of deposit allow investors to buy or sell large-denomination certificates of deposit at any time and adjust their asset portfolio according to their financial status.
(3) Large-denomination certificates of deposit improve the stability of commercial banks’ funding sources.
13. What are the main factors that affect the supply and demand relationship of stocks and cause price fluctuations?
1. Economic factors.
(1) The operating conditions of the joint-stock company that issues shares, (2) Development prospects, (3) Financial form, (4) Financial situation, (5) International balance of payments, (6) Exchange rate, ( 7) Others.
2. Political factors.
(1) War, (2) Political situation, (3) Changes in the international political situation, (4) Labor disputes, (5) Others.
3. Market factors. 4. Psychological factors.
14. What are the basic principles for the supervision of the interbank lending market?
(1) Principles of voluntary coordination, equality and mutual benefit, and independent transaction. (2) Short-term use principle. (3) Principle of on-time return.
15. What are the financial market intermediaries? What is the necessity for their existence?
(1) Transaction intermediary
1. Securities underwriter. 2. Securities trading broker. (1) Currency broker. (2) Securities brokers. (3) Stock exchange. (4) Securities clearing company.
(2) Information intermediary
1. Information consulting company. 2. Investment consulting company. 3. Credit reporting company. 4. Credit rating agencies.
16. What is the purpose of financial institutions issuing financial bonds?
(1) Improve the liability structure and enhance the stability of liabilities. (2) Obtain long-term funding sources. (3) Expand asset business.
17. What are the indicators that reflect the macroeconomics?
(1) Gross domestic product (GDP) (2) Unemployment rate (3) Inflation rate (4) Interest rate (5) Fiscal deficit (6) Psychological expectations
18. How should investors conduct enterprise value analysis?
The analysis of a company can be divided into two parts: basic quality analysis and financial analysis. The results of various analyzes ultimately form an overall judgment on the value of the company.
(1) Analysis of the basic quality of the enterprise
1. Analysis of the competitive position of the enterprise 2. Analysis of the profitability and growth of the enterprise 3. Analysis of the enterprise's operation and management capabilities
(2) Analysis of corporate financial status
1. Liquidity ratio 2. Asset efficiency ratio 3. Financial leverage ratio 4. Profitability ratio 5. Market value ratio
19. Closed-end What are the main differences between mutual funds and open-end funds?
Closed-end funds and open-end funds have the following differences:
(1) Different liquidity, risk levels and profitability (2) Different trading methods (3) Trading Prices are determined in different ways
20. Disadvantages of financial forward transactions?
(1) Since there is no fixed and centralized trading place for forward contracts, it is not conducive to the transmission of information and the formation of a unified market price, and the market efficiency is low.
(2) Since each forward contract is very different, it is not convenient for the circulation of the contract. Therefore, the liquidity of the forward contract is poor.
(3) There is no performance guarantee in forward contracts, so the risk of default is greater.
21. What are the regulatory principles of my country’s financial market?
Summarizing the practical experience of various countries, financial market supervision generally follows the following principles:
1. The principle of comprehensiveness 2. The principle of efficiency 3. The principles of openness, fairness and impartiality.
22. What are the main means of financial market supervision in my country?
1. Economic means 2. Legal means 3. Administrative means
23. Influence stock supply and demand What are the main factors causing stock price fluctuations?
(1) Economic factors.
(1) The operating conditions of the joint-stock company that issues shares, (2) Development prospects, (3) Financial form, (4) Financial situation, (5) International balance of payments, (6) Exchange rate, ( 7) Others.
(2) Political factors.
(1) War, (2) Political situation, (3) Changes in the international political situation, (4) Labor disputes, (5) Others.
(3) Market factors. (4) Psychological factors.
IV.
1. A company’s year-end dividend this year is US$2 per share, and the discount rate is 9%. The dividend per share is expected to grow by 4% per year. Calculate the current company’s stock price.
Stock market = expected dividend income/market interest = 2 (1+4%)/9% = US$23.1
2. A bank acceptance bill with a face value of 1,000 yuan , the term is 60 days, and it is transferred 30 days before expiration. The discount rate is 4%. What is the price at which investors buy this bank acceptance bill?
Acceptance bill = face amount (1-discount rate*number of discount days/360)=1000*(1-4%*30/360)=996.7 yuan
3. One piece arrives What is the half-year yield on a 10-year non-coupon bond with a period value of $1,000 and a selling price of $500?
Yield: i＝(M／P)∧(1／n)-1
＝(bond principal/market price of bond) ∧(1／n)< /p>
＝(1000/500)∧(1/20)
4. An investor bought a company’s stock at a price of 20 yuan per share and held the stock for one year. , the cash dividend income of 1 yuan is 1 yuan. One month after the cash dividend of 1 yuan, the stock is sold at a market price of 22.5 yuan. Calculate the investor's dividend yield and holding period yield.
(1) Dividend income = D／P0×100%=(1/20)×100%=5%
(2) Holding period rate of return=［D+( P-P0)]／P0×100%
=［1+(22.5-20)］／20×100%=17.5%
5 A piece of paper with a face value of 1,000 yuan An investor purchased a short-term government bond at a price of 850 yuan with a term of 90 days. Calculate the interest rate of the bond and the investor's rate of return.
(1) Short-term bond interest rate = (face value – market value)/face value × (360/number of days to maturity)
= (1000-850)/1000× (360/90) =60%
(2) Short-term bond yield = (face value - market value)/market value × (360/days to maturity) = (1000-850)/850 × (360/90) = 70.6%
6. The spot yield of a bond with an annual interest rate of 10%, a market price of 850 yuan, and a face value of 1,000 yuan.
Spot yield = annual coupon interest/bond market price × 100%
= (100/850) × 100%=11.7%
7 , A deposits 1,000 yuan in the bank, the annual interest rate is 8%, using simple interest calculation, what will be the balance of his account after 2 years? What about compound interest?
(1) Simple interest principal sum =P+I=P(1+r×n)=1000(1+8%×2)=1160 yuan
(2 )Sum of compound interest principal=P×(1+r) ∧n=1000(1+8%)∧2=1166.4 yuan