Test Bank Economics of Money, Banking and Financial Markets, 13th Edition by Frederic Mishkin Complete Chapters| A+ Graded Quiz

Test Bank
Economics of Money, Banking and
Financial Markets, 13th Edition
by Frederic Mishkin
Complete Chapters| A+ Graded Quiz




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, Chapter81

Why8Study8Money,8Banking,8and8Financial8Markets?
1.1 Why8Study8Financial8Markets?

1) Financial8markets8promote8economic8efficiency8by

A) channeling8funds8from8investors8to8savers.

B) creating8inflation.

C) channeling8funds8from8savers8to8investors.

D) reducing8investment.

Answer:8C

Question8Status:8Revised



2) Financial8markets8promote8greater8economic8efficiency8by8channeling8funds8from to

A) investors;8savers

B) borrowers;8savers

C) savers;8borrowers

D) savers;8lenders

8Answer:8C

Question8Status:8New



3) Well-functioning8financial8markets8promote

A) inflation.

B) deflation.

C) unemployment.

D) growth.

Answer:8D

Question8Status:8Revised


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,4) Markets8in8which8funds8are8transferred8from8those8who8have8excess8funds8available8to8those8who8hav
e8a8shortage8of8available8funds8are8called

A) commodity8markets.

B) fund-available8markets.

C) derivative8exchange8markets.

D) financial8markets.

Answer:8D

Question8Status:8Previous8Edition



5) markets8transfer8funds8from8people8who8have8an8excess8of8available8funds8to8people8who8have8
a8shortage.

A) Commodity

B) Fund-available

C) Financial

D) Derivative8exchange

8Answer:8C

Question8Status:8New



6) Poorly8performing8financial8markets8can8be8the8cause8of

A) wealth.

B) poverty.

C) financial8stability.

D) financial8expansion.

Answer:8B

Question8Status:8Revised




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, 7) The8bond8markets8are8important8because8they8are

A) easily8the8most8widely8followed8financial8markets8in8the8United8States.

B) the8markets8where8foreign8exchange8rates8are8determined.

C) the8markets8where8interest8rates8are8determined.

D) the8markets8where8all8borrowers8get8their8funds.

Answer:8C

Question8Status:8Revised



8) The8price8paid8for8the8rental8of8borrowed8funds8(usually8expressed8as8a8percentage8of8the8rental8of8$10
08per8year)8is8commonly8referred8to8as8the

A) inflation8rate.

B) exchange8rate.

C) interest8rate.

D) aggregate8price8level.

Answer:8C

Question8Status:8Previous8Edition



9) Compared8to8interest8rates8on8long-term8U.S.8government8bonds,8interest8rates8on8three-
month8Treasury8bills8fluctuate and8are on8average.

A) more;8lower

B) less;8lower

C) more;8higher

D) less;8higher

8Answer:8A

Question8Status:8Previous8Edition




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