武漢大學MTI真題

MultipleChoice(30points,1pointforeach)

1.TheAmericanapproachtoteachingmayseemunfamiliartomanypeoplebecausethereis

less

emphasisonlearningfactsthantrueinthesystemsofanyothercountries.

a)isb)itisc)itbeingd)tobe

2.Cinema-goershatelongqueuesbeforeallcinemas.

a)therebeingb)theretobec)thereisd)thereare

3.hadapassionforwalking,westartedoffbycar.

a)whenb)asc)afterd)while

4.TheoppositionpartiesareplanningtobringaNo-ConfidenceMotionagainstthe

PrimeMinister.

a)upb)forwardc)outd)about

5.Indiaisoneoftheseveralcountrieswhichareaffectedbywidespreaddeforestation

andsteadydestructionofnaturalwatersheds.

a)criticallyb)remarkablyc)superficiallyd)strongly

6.Ifyoutakecareofthepence,thewilltakecareofthemselves.

a)dollarsb)centsc)poundsd)money

7.Overthecourseofcenturies,theriverGangeshasitscoursemanyatimes.

a)alteredb)deviatedc)recoveredd)adjusted

8.Anotablepatriotandrevolutionarylost-toIndiainthedeathofSubhashChandra

Bose.

a)wasb)werec)hadd)have

9.Thedacoitsattackedthevillageandeveryman,womanandchildputtodeath.

a)wasb)werec)isd)are

10TheytriedtoreassuremebutIwasstillnotabletomyfears.

a)annulb)preventc)reduced)curtail

11.alwayspreferredtheofthebigcity.

a)anonymityb)obscurityc)distinctivenessd)noneofthese

12.TheoppositiontheMinisterbyfuriouscriticism.

a)ascribedb)hailedc)treatedd)assailed

13.Hisjokesfailedtoeventhefaintestofsmitesfromher.

a)invokeb)elicitc)attractd)make

14.Creditcardcrimeisreachingproportions.

a)endemicb)epidemicc)unbelievabled)great

15.ThevisitorwaswelcomedandintroducedtotheGovernor.

a)ceremoniouslyb)ceremoniallyc)affectionatelyd)perfectly

16.Sheshowedgreatandfinesseindealingwiththetroublesomesituation.

a)tactb)trickc)abilityd)power

17.Sheherdisapprovaloftheshowbyleavingtheauditorium.

a)engagedb)sawc)envisagedd)evinced

18.Coachingclassesoftenactasthetosuccessincompetitiveexaminations.

a)wayb)meansc)doord)window

19.Thepoorwomanhasmanyhardshipsafterherhusbanddiedmanyyearsago.

a)bornb)borec)borned)boar

20.Wepartookthehumblemealprovidedbythevillagers.

a)withb)ofc)atd)from

21.Thisissimilartotheothertune,butquitefromit.

a)distinctiveb)distinctc)diverged)divergent

22.Aleadingchemistbelievesthatmanyscientistshavedifficultywithstereochemistrybecause

muchoftherelevantnomenclatureis.inthatitcombinesconceptsthatshouldbekept

a)obscure...interrelatedb)specialized...intact

c)imprecise...discreted)descriptive...separate

23.Amisconceptionfrequentlyheldbynovicewritersisthatsentencestructuremirrorsthought:

themoreconvolutedthestructure,:hemoretheideas.

a)complicatedb)inconsequentialc)elementaryd)fanciful

24.Awar,eveniffoughtforindividuallibertyand.democraticrights,usuallyrequiresthatthese

principlesbe,fortheyaretheregimentationanddisciplinenecessaryfor

militaryefficiency.

a)rejected...inherentinb)suppressedfulfilledthrough

c)suspended...incompatiblewithd)followed...disruptiveof

25.Anumberofwriterswhooncegreatlytheliterarycritichaverecentlyrecanted,

substitutingfortheirformercriticism.

a)lauded...censureb)influenced...analysis

c)simulated...ambivalenced)honored...adulation

26.Ahumanbeingisquitecreature,fortheglossofrationalitythatcovershisorher

fearsandisthinandofteneasilybreached.

a)alogical...problemsb)aludicrous...laughter

c)avaliant...phobiasd)anambitious...morality

27.Thediplomat,selectedforherdemonstratedpatienceandskillinconductingsuchdelicate

negotiations,tomakeadecisionduringthetalksbecauseanysuddencommitmentat

that

timewouldhavebeen

a)resolved...detrimentalb)refused...apropos

c)declined...inopportuned)struggled...unconscionable

28.Becausethemonkeysunderstudyarethepresenceofhumanbeings,theytypically

humanobserversandgoabouttheirbusiness.

a)ambivalentabout...welcomeb)habituatedto...disregard

c)pleasedwith…snubd)unawareofavoid

29Hehadexpectedgratitudeforhisdisclosure,butinsteadheencounteredbordering

onhostility.

a)patienceb)discretionc)indifferenced)ineptitude

30.NonviolentdemonstrationsoftencreatesuchtensionsthatacommunitythatInns

constantlyrefusedtoitsinjusticesisforcedtocorrectthem:theinjusticescannolonger

be.

a)acknowledge...ignoredb)decrease...verified

c)tolerate...acceptedd)address...eliminated

?.ReadingComprehension(40points,2pointsforeach)

ReadthefollowingpassagescarefullyandchooseonebestanswerforeachquestioninPassage

1,2and3,andanswerthequestionsinpassage4basedonyourunderstandingofthepassage.

(1)Scatteredaroundtheglobearemorethanonehundredregionsofvocanicactivityknownas

hotspots(hotspot:aplaceintheuopermantleoftheearthatwhichhotmagmafromthelower

mantleupwellstomeltthroughthecrustusuallyintheinteriorofatectonicplatetoforma

volcanicfeature;also:aplaceinthecrustoverlyingahotspot).Unlikemostvolcanoes,hotspots

arerarelyfoundalongtheboundariesofthecontinentalandoceanicplatesthatcomprisethe

Earth'scrust;mosthotspotsliedeepintheinteriorofplatesandareanchoreddeepinthelayers

oftheEarth'ssurface.Hotspotsarealsodistinguishedfromothervolcanoesbytheirlavas,which

containgreateramountsofalkalimetalsthandothosefromvolcanoesatplatemargins.

Insomecases,platesmovingpasthotspotshavelefttrailsofextinctvolcanoesinmuchthe

samewaythatwindpassingoverachimneycarriesoffpuffsofsmoke.Itappearsthatthe

HawaiianIslandswerecreatedinsuchamannerbyasinglesourceoflava,wellingupfromahot

spot,overwhichthePacificOceanplatepassedonacourseroughlyfromtheeasttowardthe

northwest,carryingoffalineofvolcanoesofincreasingage.TwootherPacificislandchains桂he

AustralRidgeandtheTuamotuRidge校aralleltheconfigurationoftheHawaiianchain;theyare

alsoalignedfromtheeasttowardthenorthwest,withthemostrecentvolcanicactivityneartheir

easternterminuses.ThatthePacificplateandtheotherplatesaremovingisnowbeyond

dispute;therelativemotionoftheplateshasbeenreconstructedin.detail.Howeveotherelative

motionoftheplateswithrespect

totheEarth'sinteriorcannotbedeterminedeasily.Hotspotsprovidethemeasuringinstruments

forresolvingthequestionofwhethertwocontinentalplatesaremovinginoppositedirectionsor

whetheroneisstationaryandtheotherisdriftingawayfromit.Themostcompellingevidence

thatacontinentalplateisstationaryisthat,atsomehotspots,lavasofseveralagesare

superposedinsteadofbeingspreadoutinchronologicalsequence.Ofcourse,reconstructionof

platemotionfromthetracksofhot-spotvolcanoesassumesthathotspotsareimmobile,or

nearlyso.Severalstudiessupportsuchanassumption,includingonethathasshownthat

prominenthotspotsthroughouttheworldseemnottohavemovedduringthepasttenmillion

years.BeyondactingasframesOfreference,hotspotsapparentlyinfluencethegeophysical

processesthatpropelthepratesacrosstheglobe.Whenacontinentalplatecomestorestovera

hotspot,materialwellingupfromdeeperlayersformsabroaddomethat,asitgrows,develops

deepfissures.Insomeinstances,thecontinentalplatemayruptureentirelyalongsomeofthe

fissuressothatthehotspotinitiatestheformationofanewocean.Thus,justasearliertheories

haveexplainedthemobilityofthe

continentalplates,sohot-spotactivitymaysuggestatheorytoexplaintheirmutability.

1.Theprimarypurposeofthepassageisto.

(A)describethewayinwhichhotspotsinfluencetheextinctionofvolcanoes

(B)describeandexplaintheformationoftheoceansandcontinents

(C)explainhowtoestimatetheageoflavaflowsfromextinctvolcanoes

(D)describehotspotsandexplainnowtheyappeartoinfluenceandreccrdthemotionofplates

2.Accordingtothepassage,hotspotsdifferfrommostvolcanoesinthathotspots.

(A)canonlybefoundnearislands

(B)havegreateramountsofalkalimetalsintheirtarns

(C)aresituatedclosertotheearth'ssurface

(D)canbefoundalongtheedgesoftheplates

3.ItcanbeinferredfromthepassagethatevidencefortheapparentcourseofthePacificplate

hasbeenprovidedbythe.

(A)configurationsofseveralmid-oceanislandchains

(B)dimensionsofoceanhotspots

C)concurrentmovementoftwohotspots

(D)patternoffissuresintheoceanfloor

4.ThepassagesuggestswhichofthefollowingabouttheHawaiianIslands,theAustralRidge,

andtheTuamotuRidge?

(A)Thethreechainsofislandsaremovingeastward.

(B)Thethreeislandchainsarearesultofthesameplatemovement.

(C)TheHawaiianIslandsarerecedingfromtheothertwoislandchainsatarelativelyrapidrate.

(D)TheAustralRidgeandtheTuamotuRidgechainshavemovedclosertogetherwhereasthe

HawaiianIslandshaveremainedstationary.

5.Whichofthefollowing,iftree,wouldbestsupporttheauthor'sstatementthathot-spot

activity

mayexplainthemutabilityofcontinentalplates?

(A)Hotspotsmovemorerapidlythanthecontinentalandoceanicplates.

(B)Hotspotsarereliableindicatorsoftheageofcontinentalplates.

(C)Hotspotsareregionsofvolcanicactivityfoundonlyintheinteriorsofthecontinentalplates

(D)ThecoastlinesofAfricaandSouthAmericasuggestthattheymayoncehaveconstituteda

singlecontinentthatrapturedalongalineofhotspots.

(2)

"Theytreatuslikemules,"theguyinstallingmywashertellsme,hiseyesnarrowingashewipes

hishands.Ihadjustcomplimentedhimandhispartneronthespeedandassuranceoftheirwork.

Heexplainsthatit'srarethatcustomersspeaktohimthisway.Iknowwhathe'stalkingabout.

Mymotherwasawaitressallherlife,incoffeeshopsandfast-pacedchainrestaurants.Itwas

hardwork,butshelikedit,liked"beingamongthepublic,"asshewouldsay.Butthatworkhad

itsstingtoo--thecustomerwhowouldtreatherlikeaservantor;herbiggestcomplaint,likeshe

wasnotthatbright.There'salessonhereforthispoliticalseason:thesubtleandnotsosubtle

insultsthatblue-collarandserviceworkersendureaspartoftheirworkinglives.Andthose

insultsoftenhavetodowithintelligence.

WeliketothinkoftheUnitedStatesasaclasslesssociety.Thebeliefineconomicmobilityis

centraltotheAmericanDream,andweprideourselvesonourspiritofegalitarianism.Butwe

alsohaveatroublingstreakofaristocraticbiasinournationaltemperament,andonewayit

manifestsitselfisintheassumptionswemakeaboutpeoplewhoworkwiththeirhands.Working

peoplesensethisbiasandreacttoitwhentheyvote.Thecommonpoliticalwisdomisthat

hot-buttonsocialissueshavedrivenblue-collarvotersrightward.Butthereareothercultural

dynamicsatplayaswell,AndDemocratscanbeasoblivioustothesedynamicsasRepublicans槿

houghtheGrandOldPartydidappealtotheminSt.Paul.

Let'sgobacktothosetwomeninsrallingmywasheranddryer.Theydoalotofheavylifting

quickly根inewasthefirstof15deliveries糙ndefficiently,toavoidinjury.Betweenthemthereis

ongoingcommunication,verbalandnonverbal,tocoordinatethelift,negotiatethetightfit,

movein

rhythmwitheachother.Andallthewhile,theyareweighingoptions,makingdecisionsand

solving

problems槿swhenmynewdryerdidn'tmatchupwiththegasoutlet.

Thinkaboutwhatagoodwaitresshastodointhebusyrestaurant:rememberordersand

monitor

them,attendtoadynamic,quicklychangingenvironment,prioritizetasksandmanagetheflow

of

work,makedecisionsonthefly.There'sthecarpenterusinganumberofmathematicalconcepts

ymmetryproportion,congruence,thepropertiesofangles桂ndvisualizingtheseconceptswhile

buildingacabinet,aflightofstairs,orapitchedroof.

Thehairstylist'spracticeisamixoftechnique,knowledgeaboutthebiologyofhair,aesthetic

judgmentandcommunicationskill.Themechanic,electrician,andplumberaretroubleshooters

and

problemsolversEventheroutinizedfactoryfloorcallsforworkingsmarts.Whenhasanyofthis

made

itswayintoourpoliticalspeeches?Fromeitherparty.EvenonLaborDay.Lastweek,theGOP

masterfullyinvokedsomeoldculturalsuspicions:countryfolkversuscityandeast-coastversus

heartlandeducation.Butthesearesymbolicpopulistgestures,notthestuffoftrueengagement.

Judgmentsaboutintelligencecarrygreatweightinoursociety,andwehaveatendencytomake

sweepingassessmentsofpeople'sintelligencebasedonthekindofworktheydo.

PoliticaltributestolaboroverthenexttwomonthsWillrenderthemuscledarm,sleeverolled

tightagainstbiceps.Butfewwillalsocelebratethethoughtbrightbehindtheeye,orofferan

image

thatlinkshandandbrain.Itwouldbefittinginacountrywithanegalitarianvisionofitselfto

havea

truer,richersenseofallthatisinvolvedinthewiderangeofworkthatsurroundsandsustainsus.

Thosepoliticianswhocancommunicatethatsensewilltapadeepreserveofneglectedfeeling.

Andthosewhocanhonoranduseworkinexplainingandpersonalizingtheirpolicieswillfinda

welcomereception.

6.Toillustratetheintelligenceoftheworkingclass,theauthorcitestheexamplesofallofthe

followingEXCEPT.

(A)hairstylistandwaitress(B)carpenterandmechanic

(C)electricianandplumber(D)street-cleanerandshop-assistant

7.Inthesentence"weprideourselvesonourspiritofegalitarianism"(para.3),theword

"egalitarianism"canbereplacedby.

(A)individualism(B)enlightenment

(C)equality(D)liberalism

8.Wecanconcludefromthepassagethat.

(A)inAmerica,judgmentsaboutpeople'sintelligenceareoftenbasedonthekindofworkthey

do

(B)thesubtleandnotsosubtleinsultstowards,blue-collarsareadailyphenomenoninAmerica

(C)theUnitedStatesisa.classlesssociety

(D)theoldculturalsuspicions,ofcountryfolkversuscityandeast-coastversusheartland

educationshowtheRepublican'strueengagement

9.Oneofthemajorgroupsoftargetedreadersoftheauthorshouldbe.

(A)blue-collarAmericanworkers

(B)middle-classAmericanbusinessmen

(C)Americanpoliticians

(D)Americancompanyleaders

10.Whichofthefollowingsummarizesthemainideaofthepassage?

(A)TheDemocraticPartyandtheRepublicanPartyshouldstopsymbolicpopulistgestures.

(B)Politicaltributesshouldmindthesubtlebiasagainsttheintelligencecftheworkingclass.

(C)Therulingpartyshouldacknowledgetheworkingsmartsofblue-collars.

(3)

Joyandsadness,areexperiencedtypeopleinallculturesaroundtheworld,buthowcanwetell

whenotherpeoplearehappyordespondent?Itturnsoutthat-theexpressionofmanyemotions

maybe

universal.SmilingisapparentlyauniversalsignoffriendlinessandapproveI.Baringtheteethina

hostileway,asnotedbyCharlesDarwininthenineteenthcentury,maybeauniversesignof

anger.

Astheoriginatorofthetheoryofevolution,Darwinbelievedthattheuniversalrecognitionof

facial

expressionswouldhavesurvivalvalue.Forexample,facialexpressionscouldsignaltheapproach

of

enemies(orfriends)intheabsenceoflanguage.

Mostinvestigatorsconcurthatcertainfacialexpressionssuggestthesameemotionsinapeople.

Moreover,peopleindiverseculturesrecognizetheemotionsmanifestedbythefacialexpressions.

In

classicresearchPaulEkmantookphotographsofpeopleexhibitingtheemotionsofanger,

disgust,

fearhappiness,andsadness.Hethenaskedpeoplearoundtheworldtoindicatewhatemotions

were

beingdepictedinthem.ThosequeriedrangedfromEuropeancollegestudentstomembersof

theFore,

atribethatdwellsintheNew.Guineahighlands.AllgroupsincludingtheFore,whohadalmost

no

contactwithWesternculture,agreedontheportrayedemotions.TheForalsodisplayedfamiliar

facial

expressionswhenaskedhowtheywouldrespondiftheywerethecharactersinstoriesthatcalled

for

basicemotionalresponses.Ekmanandhiscolleaguesmorerecentlyobtainedsimilarresultsina

study

oftenculturesinwhichparticipantswerepermittedtoreportthatmultipieemotionswere

shownby

facialexpressions.Theparticipantsgenerallyagreedonwhichtwoemotionswerebeingshown

and

whichemotionwasmoreintense.

Psychologicalresearchersgenerallyrecognizethatfacialexpressionsreflectemotionalstates.In

fact,variousemotionalstatesgiverisetocertainpatternsofelectricalactivityinthefacial

musclesand

inthebrain.Thefacial-feedbackhypothesisargues,however;thatthecausalrelationship

between

emotionsandfacialexpressionscanalsoworkintheoppositedirection.Accordingtothis

hypothesis,

signalsfromthefacialmuscles("feedback")aresentbacktoemotioncentersofthebrain,andso

a

person'sfacialexpressioncaninfluencethatperson'semotionalstate.ConsiderDarwin'swords:

"The

freeexpressionbyoutwardsignsofanemotionintensifiesit.Ontheotherhand,therepression,

asfar

aspossible,ofalloutwardsignssoftensouremotions."Cansmilinggiverisetofeelingsofgood

will,

forexample,andfrowningtoanger?

Psychologicalresearchhasgivenrisetosomeinterestingfindingsconcerningthefacial-feedback

hypothesis.Causingparticipantsinexperimentstosmile,forexample,leadsthemtoreportmore

positivefeelingsandtoratecartoons(humorousdrawingsofpeopleorsituations)asbeingmore

humorous.Whentheyarecausedtofrown,theyratecartoonsasbeingmoreaggressive.

Whatarethepossiblelinksbetweenfacialexpressionsandemotion?Onelinkisarousal,which

is

thelevelofactivityorpreparednessforactivityinanorganism,intensecontractionoffacial

muscles,

suchasthoseusedinsignifyingfear;heightensarousal.Self-perceptionofheightenedarousal

then

leadstoheightenedemotionalactivity.Otherlinksmayinvolvechangesinbraintemperatureand

the

releaseofneurotransmitters(substancesthattransmitnerveimpulses.)Thecontractionoffacial

musclesbothinfluencestheinternalemotionalstateandreflectsit.Ekmanhasfoundthatthe

so-called

Duchennesmile,whichischaracterizedby"crow'sfeet"wrinkles-aroundtheeyesandasubtle

dropin

theeyecoverfoldsothattheskinabovetheeyemovesdownslightlytowardtheeyeball,can

leadto

pleasantfeelings.

Ekman'sobservationmayberelevanttotheBritishexpression"keepastiffupperlip"asa

recommendationforhandlingstress.Itmightbethata"stiff"lipsuppressesemotionalresponse

槿s

longasthelipisnotquiveringwithfearortension.Butwhentheemotionthatleadstostiffening

the

lipismoreintense,andinvolvesstrongmuscletension,facialfeedbackmayheightenemotional

response.

11.Theword"despondent"inthepassageisclosestinmeaningto.

(A)curious

(B)unhappy

(C)thoughtful

(D)uncertain

12.Theauthormentions"Baringtheteethinahostileway"inorderto.

(A)differentiateonepossiblemeaningofaparticularfacialexpressionfromothermeaningsofit

(B)upportDarwin'stheoryofevolution

(C)provideanexampleofafacialexpressionwhosemeaningiswidelyunderstood

(D)contrastafacialexpressionthatis-easilyunderstoodwithotherfacialexpressions

13.Theword"concur"inthepassageisclosestinmeaningto.

(A)estimate

(B)agree

(C)expect

(D)understand

14.Accordingtoparagraph2,whichofthefollowingwastrueoftheEorepeopleofNew

Guinea?

(A)Theydidnotwanttobeshownphotographs.

(B)Theywerefamousfortheirstorytellingskills.

(C)TheyknewverylittleaboutWesternculture.

(D)Theydidnotencouragetheexpressionofemotions.

15.Accordingtothepassage,whatdidDarwinbelievewouldhappentohumanemotionsthat

werenotexpressed?

(A)Theywouldbecomelessintense.

(B)Theywouldlastlongerthanusual.

(C)Theywouldcauseproblemslater.

(D)Theywouldbecomemorenegative.

(4)

BANKSmimicotherbanks.Theyexposethemselvestosimilarrisksbymakingthesamesortsof

loans.Eachbank'sappetiteforlendingrisesandfallsinsync.Whatissafeforoneinstitution

becomes

dangerousiftheyalldothesame,whichis-oftenhowfinancialtroublestarts.Thescopefornasty

spilloversisincreasedbydirectlinkages.Bankslendtoeachotheraswellastocustomers,soone

firm'sfailurecanquicklycauseotherstofallover,too.

Becauseoftheseconnections,rulestoensurethesoundnessofeachbankarenotenoughto

keep

thebankingsystemsafe.Hencethecallsfor"macroprudential"regulationtopreventfailuresof

the

financialsystemasawhole.Althoughthereiswideagreementthatmacropmdentialpolicyis

needed

tolimitsystemicrisk,therehasbeenverylittledetailabouthowitmightwork.Twonewreports

help

fillthisgap.OneisadiscussionpaperfromtheBankofEngland,whichsketchesouttheelements

ofa

macroprudentialregimeandidentifieswhatneedstobedecidedbeforeitisputintopractice.

The

otherpaperbytheWarwickCommission,agroupofacademicsandexpertsonfinancefrom

around

theworld,advocatesspecificreforms.

Thefirststepistodecideanobjectiveformacroprudentialpolicy.Abroadaimistokeepthe

financialsystemworkingwellatalltimes.Thebank'sreportsuggestsamoreprecisegoal:tolimit

the

chanceofbank-failuretoits"socialoptimum".Temperingtheboom-bustcreditcycleandtaking

someairoutofasset,pricebubblesmaybenecessarytomeettheseaims,butbothreportsagree

that

shouldnotbethemainpurposeofregulation.Makingfinancesaferisambitiousenough.

Policymakersthenhavetodecideonhowtheymightachievetheirgoal.Thefinancialsystemis

toowillingtoprovidecreditingoodtimesandtooshytodosoinbadtimes.Inupswingsbanks

are

keentoextendloansbecausewrite-offsseemunlikely.Thewillingnessofotherbankstodothe

same

onlyreinforcesthetrend.Borrowersseemlesslikelytodefaultbecausewthlotsofcreditaround,

the

valueoftheirassetsisrising.Astheboomgatherspace,evenbanksthata,ewaryofmakingfresh

loanscarryonforfearofcedinggroundtorivals.Whenrecessionhits,eachbankbecomesfearful

of

makingloanspartlybecauseotherbanksarealsoreluctant.Scarcecredithurtsassetpricesand

leaves

borrowerspreytothecash-flowtroublesofcustomersandsuppliers.

Sincethecycleissuchan.-influenceonbanks,macroprudentialregulationshouldmakeitharder

forallbankstolendsofreelyinboomsandeasierforthemtolendinrecessions.Itcandothisby

tailoringcapitalrequirementstothecreditcycle.Wheneveroverallcreditgrowthlookstoofrothy,

the

macroprudentialbodycouldincreasetheminimumcapitalbufferthatsupervisorsmakeeach

bank

hold.Equitycapitalisrelativelydearforbanks,whichbenefitfromanimplicitstateguaranteeon

their

debtfinanceaswellasthetaxbreaksoninterestpaymentsenjoyedbyallfirms.Forcingbanksto

hold

morecapitalwhenexuberancereignswouldmakeitcostlierforthemtosupplycredit.Itwould

also

providesocietywithanextracushionagainstbankfailures.

Eachreportaddsitsowntwisttothisprescription.TheBankofEnglandthinksextracapitalmay

beneededforcertainsortsofcredit.Ifcapitalpenaltiesarenottargeted,itargues,banksmay

simply

cutbackonroutineloanstofreeupcapitalformoreexoticlending.TheWarwickreportsays

each

bank'scapitalshouldalsovarywithhowlong-liveditsassetsarerelativetoitstunding.Firmswith

big

maturitiymismatchesaremorelikelytocausesystemicproblemsandshouldbepenalised.The

easeof

raisingcashagainstassetsandofrollingoverdebtvariesoverthecycle,andcapitalrulesneedto

reflectthis.Regulatorsshouldalsofindwaystomatchdifferentriskswiththefirmswhichcan

best

bearthem.Ranksarethenaturalbearersofcreditrisksincetheyknowaboutevaluating

borrowers.

Pensionfundsarelesspronetosuddenwithdrawalsofcashandarethebesthomesforilliquid

assets.

TheWarwickgroupiskeenthatmacroprudentialpolicyshouldbeguidedbyrules,ifcredit,

asset

pricesandGDPwereall