2 Mishkin · The Economics of Money, Banking, and Financial Markets, 9th Edition
The Economics of Money, Banking, and
Financial Markets, 9th Edition Mishkin 5) Markets in which funds are transferred from those who have excess
funds available to those who have a shortage of available funds are
·Test Bank called A) commodity markets.
B) fund-available markets.
C) derivative exchange markets.
Chapter 1 D) financial markets.
Answer: D
Why Study Money, Banking, and Financial Markets? Ques Status: Previous Edition
6) ________ markets transfer funds from people who have an excess of
1.1 Why Study Financial Markets?
available funds to people who have a shortage. A) Commodity
1) Financial markets promote economic efficiency by A) channeling funds B) Fund-available
from investors to savers. C) Financial
B) creating inflation. D) Derivative exchange
C) channeling funds from savers to investors. Answer: C
D) reducing investment. Ques Status: Previous Edition
Answer: C
Ques Status: Previous Edition 7) Poorly performing financial markets can be the cause of A) wealth.
B) poverty.
2) Financial markets promote greater economic efficiency by channeling C) financial stability.
funds from ________ to ________. D) financial expansion.
A) investors; savers B) Answer: B
borrowers; savers C) Ques Status: Previous Edition
savers; borrowers
D) savers; lenders 8) The bond markets are important because they are
Answer: C A) easily the most widely followed financial markets in the United States.
Ques Status: Previous Edition B) the markets where foreign exchange rates are determined.
C) the markets where interest rates are determined.
3) Well-functioning financial markets promote D) the markets where all borrowers get their funds.
A) inflation.
Answer: C
B) deflation. Ques Status: Previous Edition
C) unemployment.
D) growth. 9) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of
Answer: D $100 per year) is commonly referred to as the A) inflation rate.
Ques Status: Previous Edition B) exchange rate.
C) interest rate.
4) A key factor in producing high economic growth is A) eliminating D) aggregate price level.
foreign trade. Answer: C
B) well-functioning financial markets. Ques Status: Previous Edition
C) high interest rates.
D) stock market volatility. 10) Compared to interest rates on long-term U.S. government bonds, interest rates on three-month
Answer: B Treasury bills fluctuate ________ and are ________ on average.
Ques Status: New A) more; lower
The Economics of Money, Banking, and
Financial Markets, 9th Edition Mishkin 5) Markets in which funds are transferred from those who have excess
funds available to those who have a shortage of available funds are
·Test Bank called A) commodity markets.
B) fund-available markets.
C) derivative exchange markets.
Chapter 1 D) financial markets.
Answer: D
Why Study Money, Banking, and Financial Markets? Ques Status: Previous Edition
6) ________ markets transfer funds from people who have an excess of
1.1 Why Study Financial Markets?
available funds to people who have a shortage. A) Commodity
1) Financial markets promote economic efficiency by A) channeling funds B) Fund-available
from investors to savers. C) Financial
B) creating inflation. D) Derivative exchange
C) channeling funds from savers to investors. Answer: C
D) reducing investment. Ques Status: Previous Edition
Answer: C
Ques Status: Previous Edition 7) Poorly performing financial markets can be the cause of A) wealth.
B) poverty.
2) Financial markets promote greater economic efficiency by channeling C) financial stability.
funds from ________ to ________. D) financial expansion.
A) investors; savers B) Answer: B
borrowers; savers C) Ques Status: Previous Edition
savers; borrowers
D) savers; lenders 8) The bond markets are important because they are
Answer: C A) easily the most widely followed financial markets in the United States.
Ques Status: Previous Edition B) the markets where foreign exchange rates are determined.
C) the markets where interest rates are determined.
3) Well-functioning financial markets promote D) the markets where all borrowers get their funds.
A) inflation.
Answer: C
B) deflation. Ques Status: Previous Edition
C) unemployment.
D) growth. 9) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of
Answer: D $100 per year) is commonly referred to as the A) inflation rate.
Ques Status: Previous Edition B) exchange rate.
C) interest rate.
4) A key factor in producing high economic growth is A) eliminating D) aggregate price level.
foreign trade. Answer: C
B) well-functioning financial markets. Ques Status: Previous Edition
C) high interest rates.
D) stock market volatility. 10) Compared to interest rates on long-term U.S. government bonds, interest rates on three-month
Answer: B Treasury bills fluctuate ________ and are ________ on average.
Ques Status: New A) more; lower
