金融市场学双语题库及答案(第十四章)米什金《金融市场与机构》

FinancialMarketsandInstitutions,8e(Mishkin)

Chapter14TheMortgageMarkets

14.1MultipleChoice

1)Whichofthefollowingareimportantwaysinwhichmortgagemarketsdifferfromthestockandbondmarkets?

A)Theusualborrowersinthecapitalmarketsaregovernmententitiesandbusinesses,whereastheusualborrowersinthemortgagemarketsareindividuals.

B)Mostmortgagesaresecuredbyrealestate,whereasthemajorityofcapitalmarketborrowingisunsecured.

C)Becausemortgagesaremadefordifferentamountsanddifferentmaturities,developingasecondarymarkethasbeenmoredifficult.

D)Alloftheaboveareimportantdifferences.

E)OnlyAandBoftheaboveareimportantdifferences.

Answer:D

Topic:Chapter14.1WhatAreMortgages?

QuestionStatus:PreviousEdition

2)Whichofthefollowingareimportantwaysinwhichmortgagemarketsdifferfromstockandbondmarkets?

A)Theusualborrowersincapitalmarketsaregovernmententities,whereastheusualborrowersinmortgagemarketsaresmallbusinesses.

B)Theusualborrowersincapitalmarketsaregovernmententitiesandlargebusinesses,whereastheusualborrowersinmortgagemarketsaresmallbusinesses.

C)Theusualborrowersincapitalmarketsaregovernmententitiesandlargebusinesses,whereastheusualborrowersinmortgagemarketsaresmallbusinessesandindividuals.

D)Theusualborrowersincapitalmarketsarebusinessesandgovernmententities,whereastheusualborrowersinmortgagemarketsareindividuals.

Answer:D

Topic:Chapter14.1WhatAreMortgages?

QuestionStatus:PreviousEdition

3)Whichofthefollowingaretrueofmortgages?

A)Amortgageisalong-termloansecuredbyrealestate.

B)Aborrowerpaysoffamortgageinacombinationofprincipalandinterestpaymentsthatresultinfullpaymentofthedebtbymaturity.

C)Over80percentofmortgageloansfinanceresidentialhomepurchases.

D)Alloftheabovearetrueofmortgages.

E)OnlyAandBoftheabovearetrueofmortgages.

Answer:D

Topic:Chapter14.1WhatAreMortgages?

QuestionStatus:PreviousEdition

4)Whichofthefollowingaretrueofmortgages?

A)Amortgageisalong-termloansecuredbyrealestate.

B)Borrowerspayoffmortgagesovertimeinsomecombinationofprincipalandinterestpaymentsthatresultinfullpaymentofthedebtbymaturity.

C)Lessthan65percentofmortgageloansfinanceresidentialhomepurchases.

D)Alloftheabovearetrueofmortgages.

E)OnlyAandBoftheabovearetrueofmortgages.

Answer:E

Topic:Chapter14.1WhatAreMortgages?

QuestionStatus:PreviousEdition

5)Whichofthefollowingaretrueofmortgageinterestrates?

A)Interestratesonmortgageloansaredeterminedbythreefactors:currentlong-termmarketrates,thetermofthemortgage,andthenumberofdiscountpointspaid.

B)MortgageinterestratestendtotrackalongwithTreasurybondrates.

C)Theinterestrateon15-yearmortgagesislowerthantherateon30-yearmortgages,allelsethesame.

D)Alloftheabovearetrue.

E)OnlyAandBoftheabovearetrue.

Answer:D

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

6)Whichofthefollowingaretrueofmortgages?

A)Morethan80percentofmortgageloansfinanceresidentialhomepurchases.

B)TheNationalBankingActof1863rewardedbanksthatincreasedmortgagelending.

C)Mostmortgagesduringthe1920sand1930swereballoonloans.

D)Alloftheabovearetrue.

E)OnlyAandCoftheabovearetrue.

Answer:E

Topic:Chapter14.1WhatAreMortgages?

QuestionStatus:PreviousEdition

7)Whichofthefollowingistrueofmortgageinterestrates?

A)Longer-termmortgageshavelowerinterestratesthanshorter-termmortgages.

B)MortgageratesarelowerthanTreasurybondratesbecauseofthetaxdeductibilityofmortgageinterestrates.

C)Inexchangeforpoints,lendersreduceinterestratesonmortgageloans.

D)Alloftheabovearetrue.

E)OnlyAandBoftheabovearetrue.

Answer:C

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

8)Typically,discountpointsshouldnotbepaidiftheborrowerwillpayofftheloanin________yearsorless.

A)5

B)10

C)15

D)20

Answer:A

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

9)Whichofthefollowingistrueofmortgageinterestrates?

A)Longer-termmortgageshavehigherinterestratesthanshorter-termmortgages.

B)Inexchangeforpoints,lendersreduceinterestratesonmortgageloans.

C)MortgageratesarelowerthanTreasurybondratesbecauseofthetaxdeductibilityofmortgageinterestpayments.

D)Alloftheabovearetrue.

E)OnlyAandBoftheabovearetrue.

Answer:E

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

10)Whichofthefollowingreducesmoralhazardforthemortgageborrower?

A)Collateral

B)Downpayments

C)Privatemortgageinsurance

D)Borrowerqualifications

Answer:B

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

11)Whichofthefollowingprotectsthemortgagelender'srighttosellpropertyiftheunderlyingloandefaults?

A)Alien

B)Adownpayment

C)Privatemortgageinsurance

D)Borrowerqualification

E)Amortization

Answer:A

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

12)Whichofthefollowingistrueofmortgageinterestrates?

A)MortgageratesarecloselytiedtoTreasurybondrates,butmortgageratestendtostaybelowTreasuryratesbecausemortgagesaresecuredwithcollateral.

B)Longer-termmortgageshavehigherinterestratesthanshorter-termmortgages.

C)Interestratesarehigheronmortgageloansonwhichlenderschargepoints.

D)Alloftheabovearetrue.

E)OnlyAandBoftheabovearetrue.

Answer:B

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

13)Duringtheearlyyearsofanamortizingmortgageloan,thelenderapplies

A)mostofthemonthlypaymenttotheoutstandingprincipalbalance.

B)allofthemonthlypaymenttotheoutstandingprincipalbalance.

C)mostofthemonthlypaymenttointerestontheloan.

D)allofthemonthlypaymenttointerestontheloan.

E)themonthlypaymentequallytointerestontheloanandtheoutstandingprincipalbalance.

Answer:C

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

14)Duringthelastyearsofanamortizingmortgageloan,thelenderapplies

A)mostofthemonthlypaymenttotheoutstandingprincipalbalance.

B)allofthemonthlypaymenttotheoutstandingprincipalbalance.

C)mostofthemonthlypaymenttointerestontheloan.

D)allofthemonthlypaymenttointerestontheloan.

E)themonthlypaymentequallytointerestontheloanandtheoutstandingprincipalbalance.

Answer:A

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

15)Duringthelastyearsofaballoonmortgageloan,thelenderapplies

A)mostofthemonthlypaymenttotheoutstandingprincipalbalance.

B)allofthemonthlypaymenttotheoutstandingprincipalbalance.

C)mostofthemonthlypaymenttointerestontheloan.

D)allofthemonthlypaymenttointerestontheloan.

E)themonthlypaymentequallytointerestontheloanandtheoutstandingprincipalbalance.

Answer:D

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

16)Duringtheearlyyearsofaballoonmortgageloan,thelenderapplies

A)mostofthemonthlypaymenttotheoutstandingprincipalbalance.

B)allofthemonthlypaymenttotheoutstandingprincipalbalance.

C)mostofthemonthlypaymenttointerestontheloan.

D)allofthemonthlypaymenttointerestontheloan.

E)themonthlypaymentequallytointerestontheloanandtheoutstandingprincipalbalance.

Answer:D

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

17)AborrowerwhoqualifiesforanFHAorVAloanenjoystheadvantagethat

A)themortgagepaymentismuchlower.

B)onlyaveryloworzerodownpaymentisrequired.

C)thecostofprivatemortgageinsuranceislower.

D)thegovernmentholdsthelienontheproperty.

Answer:B

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

18)(I)Conventionalmortgagesareoriginatedbyprivatelendinginstitutions,andFHAorVAloansareoriginatedbythegovernment.(II)Conventionalmortgagesareinsuredbyprivatecompanies,andFHAorVAloansareinsuredbythegovernment.

A)(I)istrue,(II)false.

B)(I)isfalse,(II)true.

C)Botharetrue.

D)Botharefalse.

Answer:B

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

19)Borrowerstendtoprefer________to________,whereaslendersprefer________.

A)fixed-rateloans;ARMs;fixed-rateloans

B)ARMs;fixed-rateloans;fixed-rateloans

C)fixed-rateloans;ARMs;ARMs

D)ARMs;fixed-rateloans;ARMs

Answer:C

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

20)(I)ARMsofferlowerinitialratesandtheratemayfallduringthelifeoftheloan.(II)Conventionalmortgagesdonotallowaborrowertotakeadvantageoffallinginterestrates.

A)(I)istrue,(II)isfalse.

B)(I)isfalse,(II)istrue.

C)Botharetrue.

D)Botharefalse.

Answer:A

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

21)Growing-equitymortgages(GEMs)

A)helptheborrowerpayofftheloaninashortertime.

B)havesuchlowpaymentsinthefirstfewyearsthattheprincipalbalanceincreases.

C)offerborrowerspaymentsthatareinitiallylowerthanthepaymentsonaconventionalmortgage.

D)doalloftheabove.

E)doonlyAandBoftheabove.

Answer:A

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

22)Aborrowerwitha30-yearloancancreateaGEMby

A)simplyincreasingthemonthlypaymentsbeyondwhatisrequiredanddesignatingthattheexcessbeappliedentirelytotheprincipal.

B)convertinghisARMintoaconventionalmortgage.

C)convertinghisconventionalmortgageintoanARM.

D)convertinghisconventionalmortgageintoaGPM.

Answer:A

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

23)Whichofthefollowingareusefulforhomebuyerswhoexpecttheirincometoriseinthefuture?

A)GPMs

B)RAMs

C)GEMs

D)OnlyAandBareuseful.

E)OnlyAandCareuseful.

Answer:E

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

24)Whichofthefollowingareusefulforhomebuyerswhoexpecttheirincometofallinthefuture?

A)GPMs

B)RAMs

C)GEMs

D)OnlyAandBareuseful.

E)OnlyAandCareuseful.

Answer:B

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

25)Retiredpeoplecanliveontheequitytheyhaveintheirhomesbyusinga

A)GEM.

B)GPM.

C)SAM.

D)RAM.

Answer:D

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

26)Secondmortgagesservethefollowingpurposes:

A)theygiveborrowersawaytousetheequitytheyhaveintheirhomesassecurityforanotherloan.

B)theyallowborrowerstogetataxdeductiononloanssecuredbytheirprimaryresidenceorvacationhome.

C)theyallowborrowerstoconverttheirconventionalmortgagesintoGEMs.

D)alloftheabove.

E)onlyAandBoftheabove.

Answer:E

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

27)Whichofthefollowingisadisadvantageofasecondmortgagecomparedtocreditcarddebt?

A)Theloansaresecuredbytheborrower'shome.

B)Theborrowergivesupthetaxdeductionontheprimarymortgage.

C)Theborrowermustpaypointstogetasecondmortgageloan.

D)Theborrowerwillfinditmoredifficulttoqualifyforasecondmortgageloan.

Answer:A

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

28)Theshareofthemortgagemarketheldbysavingsandloansis

A)over50percent.

B)approximately40percent.

C)approximately20percent.

D)lessthan5percent.

Answer:D

Topic:Chapter14.4Mortgage-LendingInstitutions

QuestionStatus:UpdatedfromPreviousEdition

29)Theshareofthemortgagemarketheldbycommercialbanksisapproximately

A)50percent.

B)30percent.

C)15percent.

D)5percent.

Answer:B

Topic:Chapter14.4Mortgage-LendingInstitutions

QuestionStatus:UpdatedfromPreviousEdition

30)Aloan-servicingagentwill

A)packagetheloanforaninvestor.

B)holdtheloanintheirinvestmentportfolio.

C)collectpaymentsfromtheborrower.

D)dobothAandCoftheabove.

E)dobothBandCoftheabove.

Answer:C

Topic:Chapter14.5LoanServicing

QuestionStatus:PreviousEdition

31)Distinctelementsofamortgageloaninclude

A)origination.

B)investment.

C)servicing.

D)alloftheabove.

E)onlyBandCoftheabove.

Answer:D

Topic:Chapter14.6SecondaryMortgageMarket

QuestionStatus:PreviousEdition

32)TheFederalNationalMortgageAssociation(FannieMae)

A)wassetuptobuymortgagesfromthriftssothattheseinstitutionscouldmakemoreloans.

B)fundspurchasesofmortgagesbysellingbondstothepublic.

C)providesinsuranceforcertainmortgagecontracts.

D)doesalloftheabove.

E)doesonlyAandBoftheabove.

Answer:E

Topic:Chapter14.6SecondaryMortgageMarket

QuestionStatus:PreviousEdition

33)TheFederalHousingAdministration(FHA)

A)wassetuptobuymortgagesfromthriftssothattheseinstitutionscouldmakemoreloans.

B)fundspurchasesofmortgagesbysellingbondstothepublic.

C)providesinsuranceforcertainmortgagecontracts.

D)doesalloftheabove.

E)doesonlyAandBoftheabove.

Answer:C

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

34)________issuesparticipationcertificates,and________providesfederalinsuranceforparticipationcertificates.

A)FreddieMac;FreddieMac

B)FreddieMac;GinnieMae

C)GinnieMae;FreddieMac

D)GinnieMae;GinnieMae

E)FreddieMac;noone

Answer:E

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

35)REMICsaremostlike

A)FreddieMacpass-throughsecurities.

B)GinnieMaepass-throughsecurities.

C)participationcertificates.

D)collateralizedmortgageobligations.

Answer:D

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

36)GinnieMae

A)insuresqualifyingmortgages.

B)insurespass-throughcertificates.

C)insurescollateralizedmortgageobligations.

D)doesonlyAandB.oftheabove.

E)doesonlyBandCoftheabove.

Answer:B

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

37)Mortgage-backedsecurities

A)havebeengrowinginpopularityinrecentyearsasinstitutionalinvestorslookforattractiveinvestmentopportunities.

B)aresecuritiescollateralizedbyapoolofmortgages.

C)aresecuritiescollateralizedbybothinsuredanduninsuredmortgages.

D)arealloftheabove.

E)areonlyAandBoftheabove.

Answer:D

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

38)Themostcommontypeofmortgage-backedsecurityis

A)themortgagepass-through,asecuritythathastheborrower'smortgagepaymentspassthroughthetrusteebeforebeingdisbursedtotheinvestors.

B)collateralizedmortgageobligations,asecuritywhichreducesprepaymentrisk.

C)theparticipationcertificate,asecuritywhichpassestheborrower'smortgagepaymentsequallyamongalltheownersofthecertificates.

D)thesecuritizedmortgage,asecuritywhichincreasestheliquidityofotherwiseilliquidmortgages.

Answer:A

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

39)Theinterestrateborrowerspayontheirmortgagesisdeterminedby

A)currentlong-termmarketrates.

B)theterm.

C)thenumberofdiscountpoints.

D)alloftheabove.

Answer:D

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

40)Aloanforborrowerswhodonotqualifyforloansattheusualmarketrateofinterestbecauseofapoorcreditratingorbecausetheloanislargerthanjustifiedbytheirincomeis

A)asubprimemortgage.

B)asecuritizedmortgage.

C)aninsuredmortgage.

D)agraduated-paymentmortgage.

Answer:A

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

41)Thepercentageofthetotalloanpaidbackimmediatelywhenamortgageloanisobtained,whichlowerstheannualinterestrateonthedebt,iscalled

A)discountpoints.

B)loanterms.

C)collateral.

D)downpayment.

Answer:A

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

42)Whichofthefollowingtermsarefoundinmortgageloancontractstoprotectthelenderfromfinancialloss?

A)Collateral

B)Downpayment

C)Privatemortgageinsurance

D)Alloftheabove

Answer:D

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

43)Whatfactorsareusedindeterminingaperson'sFICOscore?

A)Pastpaymenthistory

B)Outstandingdebt

C)Lengthofcredithistory

D)Alloftheabove

Answer:D

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

44)Between2000and2005,homepricesincreasedanaverageof________peryear.

A)2%

B)4%

C)8%

D)12%

Answer:C

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:NewQuestion

45)From2000to2005,housingpricesincreased,onaverage,byover40%.Thisrunupinpriceswascausedby

A)speculators.

B)anincreaseinsubprimeloans,whichincreaseddemandfornewandexistinghouses.

C)bothAandB.

D)Noneoftheabovearecorrect.

Answer:C

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:UpdatedfromPreviousEdition

14.2True/False

1)In2012,mortgageloanstofarmsrepresentedthelargestproportionofmortgagelendingintheU.S.

Answer:FALSE

Topic:Chapter14.1WhatAreMortgages?

QuestionStatus:NewQuestion

2)Downpaymentsaredesignedtoreducethelikelihoodofdefaultonmortgageloans.

Answer:TRUE

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

3)Discountpoints(orsimplypoints)areinterestpaymentsmadeatthebeginningofaloan.

Answer:TRUE

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

4)Apointonamortgageloanreferstoonemonthlypaymentofprincipalandinterest.

Answer:FALSE

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

5)Closingforamortgageloanreferstothemomenttheloanispaidoff.

Answer:FALSE

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

6)Privatemortgageinsuranceisapolicythatguaranteestomakeupanydiscrepancybetweenthevalueofthepropertyandtheloanamount,shouldadefaultoccur.

Answer:TRUE

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

7)Duringtheearlyyearsofamortgageloan,thelenderappliesmostofthepaymenttotheprincipalontheloan.

Answer:FALSE

Topic:Chapter14.2CharacteristicsoftheResidentialMortgage

QuestionStatus:PreviousEdition

8)OneimportantadvantagetoaborrowerwhoqualifiesforanFHAorVAloanistheverylowinterestrateonthemortgage.

Answer:FALSE

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

9)Adjustable-ratemortgagesgenerallyhavelowerinitialinterestratesthanfixed-ratemortgages.

Answer:TRUE

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

10)Mortgageinterestrateslooselytrackinterestratesonthree-monthTreasurybills.

Answer:FALSE

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

11)Anadvantageofagraduated-paymentmortgageisthatborrowerswillqualifyforalargerloanthaniftheyrequestedaconventionalmortgage.

Answer:TRUE

Topic:Chapter14.3TypesofMortgages

QuestionStatus:PreviousEdition

12)Nearlyhalfthefundsformortgagelendingcomesfrommortgagepoolsandtrusts.

Answer:FALSE

Topic:Chapter14.4Mortgage-LendingInstitutions

QuestionStatus:UpdatedfromPreviousEdition

13)Manyinstitutionsthatmakemortgageloansdonotwanttoholdlargeportfoliosoflong-termsecurities,becauseitwouldsubjectthemtounacceptablyhighinterest-raterisk.

Answer:TRUE

Topic:Chapter14.4Mortgage-LendingInstitutions

QuestionStatus:PreviousEdition

14)Aproblemthatinitiallyhinderedthemarketabilityofmortgagesinasecondarymarketwasthattheywerenotstandardized.

Answer:TRUE

Topic:Chapter14.6SecondaryMortgageMarket

QuestionStatus:PreviousEdition

15)Mortgage-backedsecuritieshavedeclinedinpopularityinrecentyearsasinstitutionalinvestorshavesoughthigherreturnsinothermarkets.

Answer:FALSE

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

16)Mortgage-backedsecuritiesaremarketablesecuritiescollateralizedbyapoolofmortgages.

Answer:TRUE

Topic:Chapter14.8WhatIsaMortgage-BackedSecurity?

QuestionStatus:PreviousEdition

17)FannieMaeandFreddieMactogethereitherownorinsuretheriskonnearlyone-fourthofAmerica'sresidentialmortgages.

Answer:FALSE

Topic:Chapter14.4Mortgage-LendingIns