金融市场与金融机构（原书第9版）题库chapter 23.docVIP

PAGE 17 Copyright ? 2018 Pearson Education, Inc. Financial Markets and Institutions, 9e (Mishkin) Chapter 23 Risk Management in Financial Institutions 23.1 Multiple Choice 1) Banks face the problem of ________ in loan markets because bad credit risks are the ones most likely to seek bank loans. A) adverse selection B) moral hazard C) moral suasion D) intentional fraud Answer: A Topic: Chapter 23.1 Managing Credit Risk Question Status: Previous Edition 2) If borrowers with the most risky investment projects are more likely to seek bank loans than borrowers with the safest investment projects, banks face the problem of A) adverse credit risk. B) adverse selection. C) moral hazard. D) conflict of interest. Answer: B Topic: Chapter 23.1 Managing Credit Risk Question Status: Previous Edition 3) Because borrowers, once they have a loan, are more likely to invest in high-risk investment projects, banks face the A) adverse selection problem. B) lemon problem. C) adverse credit risk problem. D) moral hazard problem. Answer: D Topic: Chapter 23.1 Managing Credit Risk Question Status: Previous Edition 4) Banks attempts to solve adverse selection and moral hazard problems help explain loan management principles such as A) screening and monitoring of loan applicants. B) collateral and compensating balances. C) credit rationing. D) all of the above. E) only A and B of the above. Answer: D Topic: Chapter 23.1 Managing Credit Risk Question Status: Previous Edition 5) To be profitable, financial institutions must overcome the adverse selection and moral hazard problems that make loan defaults A) more likely. B) certain. C) unlikely. D) impossible. Answer: A Topic: Chapter 23.1 Managing Credit Risk Question Status: Previous Edition 6) In one sense, ________ appears surprising since it means that the bank is not ________ its portfolio of loans and thus is exposing itself to more risk. A) specialization in lending; diversifying B) specialization in lending