金融市场与机构（第六版）测试银行 ch22.docx

《金融市场与机构（第六版）测试银行 ch22.docx》由会员分享，可在线阅读，更多相关《金融市场与机构（第六版）测试银行 ch22.docx（13页珍藏版）》请在淘文阁 - 分享文档赚钱的网站上搜索。

1、Financial Markets and Institutions, 6e (Mishkin/Eakins)Chapter 22 Insurance Companies and Pension Funds22.1 Multiple Choice1) The earliest form of insurance was insurance.A) lifeB) healthC) automobileD) property and casualtyAnswer: DQuestion Status: Previous Edition2) The certainty equivalent for ri

2、sk-averse people who buy insurance is theA) maximum loss they may sustain.B) expected loss they may sustain.C) insurance premium they pay.D) profit the insurance company earns.Answer: CQuestion Status: Previous Edition3) The problem of occurs when those most likely to get large insurance payoffs are

3、the ones who want to purchase insurance the most.A) asymmetric informationB) moral hazardC) adverse selectionD) fraudulent behaviorAnswer: CQuestion Status: Previous Edition4) When those most likely to produce the outcome insured against are the ones who purchase insurance, insurance companies are s

4、aid to face the problem ofA) fraudulent claims.B) moral hazard.C) adverse selection.D) pecuniary purchases.Answer: CQuestion Status: Previous Edition5) To prevent adverse selection, health and life insurance companies may do all the following exceptA) charge higher premiums to people with certain pr

5、e-existing health conditions.B) require potential policyholders to submit medical records.C) refuse to sell policies to people with certain pre-existing health conditions.D) charge the same premiums to all policyholders.Answer: DQuestion Status: Previous Edition46) Which or the following pensions do

6、es not promise employees a specific retirement benefit?A) defined-benefit planB) defined-contribution planC) overfunded planD) underfunded planAnswer: BQuestion Status: Previous Edition47) All insurance is subject to several basic principles including all of the following except A) the insured must

7、provide full and accurate information to the insurance company. B) the insured is to profit as a result of insurance coverage.C) the loss must be quantifiable.D) there must be a relationship between the insured and the beneficiary.Answer: BQuestion Status: New48) A basic product of life insurance co

8、mpanies is A) disability insurance.B) annuities.C) health insurance.D) all of the above.Answer: DQuestion Status: New49)is an insurance product that will help if you live longer than you expect. For an initial fixed sum or stream of payments, the insurance company agrees to pay you a fixed amount fo

9、r as long as you live.)/ 7 7 A B c Dinsurance properinsuranceHealth insuranceAnswer: CQuestion Status: New50) The broad categories of life insurance products including which of the following?A) TermB) Whole lifeC) Universal lifeD) All of the aboveAnswer: DQuestion Status: New51) Which life insurance

10、 policy usually requires the insured to pay a level premium for the duration of the policy, and the overpayment accumulates as a cash value that can be borrowed by the insured at reasonable rates?A) Whole lifeB) TermC) Universal lifeD) None of the aboveAnswer: AQuestion Status: New52) What insurance

11、 protects against liability for harm the insured may cause to others as a result of product failure or accidents?A) Property insuranceB) Health insuranceC) Life insuranceD) Casualty insuranceAnswer: DQuestion Status: New22.2 True/False1) Adverse selection occurs when those most likely to get insuran

12、ce payoffs are the ones who want to purchase the insurance the most.Answer: TRUEQuestion Status: Previous Edition2) The fact that insurance companies charge young males higher automobile insurance premiums than young females is an example of coinsurance.Answer: FALSEQuestion Status: Previous Edition

13、3) When a life-long chain smoker attempts to purchase a life insurance policy, the insurance company faces the problem of adverse selection.Answer: TRUEQuestion Status: Previous Edition4) The higher the insurance coverage, the more the policyholder can gain from risky activities that make an insuran

14、ce payoff less likely.Answer: FALSEQuestion Status: Previous Edition5) Vesting refers to the length of time that a person must be enrolled in a pension plan before being entitled to receive benefits.Answer: TRUEQuestion Status: Previous Edition6) A defined-contribution plan promises employees a spec

15、ific amount of retirement income. Answer: FALSEQuestion Status: Previous Edition7) The Pension Benefit Guarantee Corporation performs a role similar to that of the O仔ice of Thrift Supervision.Answer: FALSEQuestion Status: Previous Edition8) Social Security is a pay-as-you-go system.Answer: TRUEQuest

16、ion Status: Previous Edition9) The Social Security system is an example of a pension plan that is fully funded.Answer: FALSEQuestion Status: Previous Edition10) Demographic trends and changes in retirement patterns suggest that Social Security funding problems will ease over the next few decades.Ans

17、wer: FALSEQuestion Status: Previous Edition11) A whole life insurance policy pays a death benefit if the policyholder dies.Answer: TRUEQuestion Status: Previous Edition12) Most private pension plans are insured by the Penny Benny, which pays benefits when a plans sponsor goes bankrupt.Answer: TRUEQu

18、estion Status: Previous Edition13) Property and casualty insurance protects against losses from fire, theft, storm, explosion, and even neglect.Answer: TRUEQuestion Status: New14) Health maintenance organizations (HMOs) shift the risk from the provider to the insurance company.Answer: FALSEQuestion

19、Status: New15) Casualty insurance can be provided in either named-peril policies or open-peril policies. Answer: FALSEQuestion Status: New22.3 Essay1) Would you prefer the manager of the pension plan in which you are enrolled to be paid a flat fee, independent of the performance of the plan, or be p

20、aid based on the funds performance, even if that might mean paying him or her a higher salary? Explain.Question Status: Previous Edition2) Who has the strongest incentive to monitor the performance of individual pension plans such as Keoghs and IRAs? Explain.Question Status: Previous Edition3) Why d

21、o life insurance companies and pension plans invest heavily in long-term assets? Question Status: Previous Edition4) Why must insurance companies screen applicants so carefully?Question Status: Previous Edition5) Distinguish between different types of life insurance.Question Status: Previous Edition

22、6) What are the major differences between life insurance and property and casualty insurance? Question Status: Previous Edition7) Why will Social Security funding problems rise in the coming decades? Identify and evaluate the proposals that have been suggested to ease or reverse these problems. Ques

23、tion Status: Previous Edition8) Describe how insurance companies try to reduce adverse selection and moral hazards. Question Status: New6) In the case of an insurance policy,occurs when the existence of insurance encourages the insured party to take risks that increase the likelihood of an insurance

24、 payoff.A) moral hazardB) opportunismC) adverse selectionD) shirkingAnswer: AQuestion Status: Previous Edition7) Some automobile owners will drive faster knowing that they are covered by health and automobile insurance. This behavior creates the problem ofA) fraudulent claims.B) moral hazard.C) adve

25、rse selection.D) pecuniary purchases.Answer: BQuestion Status: Previous Edition8) In the case of an insurance policy,occurs when the existence of insurance encourages the insured party to take risks that increase the likelihood of an insurance payoff; occurs when those most likely to get large insur

26、ance payoffs are the ones who want to purchase insurance the most.A) moral hazard; insurance market discriminationB) moral hazard; insurance segregationC) moral hazard; adverse selectionD) adverse selection; moral hazardAnswer: CQuestion Status: Previous Edition9) To prevent the moral hazard problem

27、, health and life insurance companies may write policiesA) for which premiums increase dramatically once the policyholder is discovered to have contracted an illness.B) containing provisions which either reduce or eliminate benefits to persons who contract pre-specified illnesses.C) limiting the amo

28、unt the companies will pay in the event that claims are submitted by policyholders.D) with all of the above provisions.E) with only A and B of the above provisions.Answer: DQuestion Status: Previous Edition10) To prevent the moral hazard problem, health and life insurance companies may write policie

29、sA) that increase benefits dramatically once the policyholder is discovered to have contracted an illness so that the patient can recover sooner.B) containing provisions which either reduce or eliminate benefits to persons who contract pre-specified illnesses.C) boosting the amount the companies wil

30、l pay health providers in the event that claims are submitted by policyholders.D) with only A and B of the above provisions.Answer: BQuestion Status: Previous Edition11) Insurance management tools that give policyholders incentives to avoid accidents insured against includeA) deductibles.B) risk-bas

31、ed premiums.C) coinsurance.D) all of the above.Answer: DQuestion Status: Previous Edition12) Which is not a management practice for reducing the problems of adverse selection and moral hazard in insurance?A) deductiblesB) restrictive provisionsC) coinsuranceD) reinsuranceAnswer: DQuestion Status: Pr

32、evious Edition13) Insurance companies employ underwritersA) as an alternative to higher deductibles.B) to control the risky behavior of their policy holders.C) to control the risk incurred on their behalf by agents.D) to encourage the loyalty of exclusive agents.E) to maintain the independence of in

33、dependent agents.Answer: CQuestion Status: Previous Edition14)companies get a tax advantage; most new insurance companies organize as companies.A) Mutual insurance; mutual insuranceB) Mutual insurance; stockC) Stock; stockD) Stock; mutual insuranceAnswer: BQuestion Status: Previous Edition15) (I) A

34、majority of life insurance companies are organized as mutual companies. (II) State governments have the major responsibility for regulating insurance companies.A) (I) is true, (II) false.B) (I) is false, (II) true.C) Both are true.D) Both are false.Answer: BQuestion Status: Previous Edition16) Which

35、 of the following do not help people during their retirement?A) Term life insuranceB) AnnuityC) Whole life insuranceD) Universal life insuranceAnswer: AQuestion Status: Previous Edition17) A term life insurance policy providesA) insurance benefits only.B) savings benefits only.C) both insurance and

36、savings benefits.D) none of the above.Answer: AQuestion Status: Previous Edition18) Which of the following types of life insurance provides no savings element?A) TermB) WholeC) UniversalD) None of the above has a savings element.Answer: AQuestion Status: Previous Edition19) Which of the following is

37、 true of life insurance companies?A) They primarily hold long-term assets that are not particularly liquid.B) They primarily hold short-term liquid assets.C) Payouts to policyholders are relatively predictable.D) Both A and C of the above.Answer: DQuestion Status: Previous Edition20) Of the followin

38、g financial intermediaries, which holds the least liquid assets?A) Property and casualty insurance companiesB) Life insurance companiesC) Money market mutual fundsD) Commercial banksAnswer: BQuestion Status: Previous Edition21) Relative to life insurance companies, property and casualty insurance co

39、mpanies holdA) more liquid assets.B) more long-term government bonds.C) more commercial mortgages.D) fewer municipal bonds.Answer: AQuestion Status: Previous Edition22) The largest share of life insurance companies* assets areA) corporate stock.B) corporate bonds.C) government securities.D) cash res

40、erves.Answer: BQuestion Status: Previous Edition23) The federal regulatory agency responsible for regulating the activities of life insurance companies isA) the Federal Deposit Insurance Corporation.B) the Federal Reserve.C) the Federal Life Insurance Board.D) none of the above; there is no such fed

41、eral regulatory agency.Answer: DQuestion Status: Previous Edition24) Which of the following is not a feature of the Terrorism Risk Insurance Act of 2002?A) Losses that exceed $100 billion are not covered.B) The law does not apply to acts of international terrorism when losses are less than $5 millio

42、n.C) Government pays 50 percent of losses in excess of $100 billion.D) Government pays 90 percent of the losses.Answer: CQuestion Status: Previous Edition25) Insurance companies* attempts to minimize adverse selection and moral hazard explain which of the following insurance practices?A) Risk-assess

43、ment screeningB) Risk-based premiumsC) Restrictive provisionsD) All of the aboveE) Only A and B of the aboveAnswer: DQuestion Status: Previous Edition26) Insurance companies* attempts to minimize adverse selection and moral hazard explain which of the following insurance practices?A) Requiring colla

44、teral for policiesB) Risk-based premiumsC) Compensating balancesD) All of the aboveE) Only A and B of the aboveAnswer: BQuestion Status: Previous Edition27) Insurance companies* attempts to minimize adverse selection and moral hazard explain which of the following insurance practices?A) Gender-neutr

45、al premiumsB) Flat-rate premiumsC) Restrictive provisionsD) All of the aboveE) Only A and B of the aboveAnswer: CQuestion Status: Previous Edition28) Insurance companies1 attempts to minimize adverse selection and moral hazard explain which of the following insurance practices?A) Collection of infor

46、mation and screening of potential policyholdersB) Risk-based premiumsC) Cancellation of insuranceD) All of the aboveAnswer: DQuestion Status: Previous Edition29) Insurance companies1 attempts to minimize adverse selection and moral hazard explain which of the following insurance practices?A) Collect

47、ion of information and screening of potential policyholdersB) Risk-based premiumsC) Deductibles and coinsuranceD) All of the aboveE) Only A and B of the aboveAnswer: DQuestion Status: Previous Edition30) If automobile insurance companies were prevented from charging risk-based premiums, but could selectively screen potential policyholders, the likely effect would be toA) increase the number of young men obtaining insurance coverage relative to young women.B) decrease the number of young women obtaining insurance coverage relative to young men.C) de