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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, Chapter91

Why9Study9Money,9Banking,9and9Financial9Markets?
1.1 Why9Study9Financial9Markets?

1) Financial9markets9promote9economic9efficiency9by

A) channeling9funds9from9investors9to9savers.

B) creating9inflation.

C) channeling9funds9from9savers9to9investors.

D) reducing9investment.

Answer:9C

Question9Status:9Revised



2) Financial9markets9promote9greater9economic9efficiency9by9channeling9funds9from to

A) investors;9savers

B) borrowers;9savers

C) savers;9borrowers

D) savers;9lenders

9Answer:9C

Question9Status:9New



3) Well-functioning9financial9markets9promote

A) inflation.

B) deflation.

C) unemployment.

D) growth.

Answer:9D

Question9Status:9Revised


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,4) Markets9in9which9funds9are9transferred9from9those9who9have9excess9funds9available9to9those9who9hav
e9a9shortage9of9available9funds9are9called

A) commodity9markets.

B) fund-available9markets.

C) derivative9exchange9markets.

D) financial9markets.

Answer:9D

Question9Status:9Previous9Edition



5) markets9transfer9funds9from9people9who9have9an9excess9of9available9funds9to9people9who9have9
a9shortage.

A) Commodity

B) Fund-available

C) Financial

D) Derivative9exchange

9Answer:9C

Question9Status:9New



6) Poorly9performing9financial9markets9can9be9the9cause9of

A) wealth.

B) poverty.

C) financial9stability.

D) financial9expansion.

Answer:9B

Question9Status:9Revised




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, 7) The9bond9markets9are9important9because9they9are

A) easily9the9most9widely9followed9financial9markets9in9the9United9States.

B) the9markets9where9foreign9exchange9rates9are9determined.

C) the9markets9where9interest9rates9are9determined.

D) the9markets9where9all9borrowers9get9their9funds.

Answer:9C

Question9Status:9Revised



8) The9price9paid9for9the9rental9of9borrowed9funds9(usually9expressed9as9a9percentage9of9the9rental9of9$10
09per9year)9is9commonly9referred9to9as9the

A) inflation9rate.

B) exchange9rate.

C) interest9rate.

D) aggregate9price9level.

Answer:9C

Question9Status:9Previous9Edition



9) Compared9to9interest9rates9on9long-term9U.S.9government9bonds,9interest9rates9on9three-
month9Treasury9bills9fluctuate and9are on9average.

A) more;9lower

B) less;9lower

C) more;9higher

D) less;9higher

9Answer:9A

Question9Status:9Previous9Edition




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