ECONOMICS OF MONEY, BANKING, AND FINANCIAL MARKETS
b b b b b b
Test Bank for Economics of Money, Banking, and Financial Markets, 13th
b b b b b b b b b b
Edition by Frederic S. Mishkin (Pearson, 2021) | ISBN: 9781292409566 |
b b b b b b b b b b b
All Chapters (1-25)
b b b
Bonie314 Stuvia
, Chapter 1 b
Why Study Money, Banking, and Financial Markets?
b b b b b b
1.1 Why Study Financial Markets?
b b b
1) Financial markets promote economic efficiency by
b b b b b
A) channeling funds from investors to savers. b b b b b
B) creating inflation. b
C) channeling funds from savers to investors. b b b b b
D) reducing investment. b
Answer: C b
Question Status: Revisedb b
2) Financial markets promote greater economic efficiency by channeling funds from
b b b b b b b b b to
A) investors; savers b
B) borrowers; savers b
C) savers; borrowers b
D) savers; lenders b
Answer: C
b b
Question Status: New b b
3) Well-functioning financial markets promote b b b
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: D b
Question Status: Revisedb b
1|P a g e
b b b b b
,4) Markets in which funds are transferred from those who have excess funds available to those who have
b b b b b b b b b b b b b b b b
ba shortage of available funds are called
b b b b b b
A) commodity markets. b
B) fund-available markets. b
C) derivative exchange markets. b b
D) financial markets. b
Answer: D b
Question Status: Previous Edition
b b b
5) markets transfer funds from people who have an excess of available funds to people who have a
b b b b b b b b b b b b b b b b
bshortage.
A) Commodity
B) Fund-available
C) Financial
D) Derivative exchange b
Answer: C
b b
Question Status: New b b
6) Poorly performing financial markets can be the cause of
b b b b b b b b
A) wealth.
B) poverty.
C) financial stability. b
D) financial expansion. b
Answer: B b
Question Status: Revisedb b
2|P a g e
b b b b b
, 7) The bond markets are important because they are
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A) easily the most widely followed financial markets in the United States.
b b b b b b b b b b
B) the markets where foreign exchange rates are determined.
b b b b b b b
C) the markets where interest rates are determined.
b b b b b b
D) the markets where all borrowers get their funds.
b b b b b b b
Answer: C b
Question Status: Revised b b
8) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100
b b b b b b b b b b b b b b b b b b
bper year) is commonly referred to as the
b b b b b b b
A) inflation rate. b
B) exchange rate. b
C) interest rate. b
D) aggregate price level. b b
Answer: C b
Question Status: Previous Edition
b b b
9) Compared to interest rates on long-term U.S. government bonds, interest rates on three-month Treasury
b b b b b b b b b b b b b
bbills fluctuate and are
b on average. b b
A) more; lower b
B) less; lower b
C) more; higher b
D) less; higher b
Answer: A
b b
Question Status: Previous Edition
b b b
3|P a g e
b b b b b
b b b b b b
Test Bank for Economics of Money, Banking, and Financial Markets, 13th
b b b b b b b b b b
Edition by Frederic S. Mishkin (Pearson, 2021) | ISBN: 9781292409566 |
b b b b b b b b b b b
All Chapters (1-25)
b b b
Bonie314 Stuvia
, Chapter 1 b
Why Study Money, Banking, and Financial Markets?
b b b b b b
1.1 Why Study Financial Markets?
b b b
1) Financial markets promote economic efficiency by
b b b b b
A) channeling funds from investors to savers. b b b b b
B) creating inflation. b
C) channeling funds from savers to investors. b b b b b
D) reducing investment. b
Answer: C b
Question Status: Revisedb b
2) Financial markets promote greater economic efficiency by channeling funds from
b b b b b b b b b to
A) investors; savers b
B) borrowers; savers b
C) savers; borrowers b
D) savers; lenders b
Answer: C
b b
Question Status: New b b
3) Well-functioning financial markets promote b b b
A) inflation.
B) deflation.
C) unemployment.
D) growth.
Answer: D b
Question Status: Revisedb b
1|P a g e
b b b b b
,4) Markets in which funds are transferred from those who have excess funds available to those who have
b b b b b b b b b b b b b b b b
ba shortage of available funds are called
b b b b b b
A) commodity markets. b
B) fund-available markets. b
C) derivative exchange markets. b b
D) financial markets. b
Answer: D b
Question Status: Previous Edition
b b b
5) markets transfer funds from people who have an excess of available funds to people who have a
b b b b b b b b b b b b b b b b
bshortage.
A) Commodity
B) Fund-available
C) Financial
D) Derivative exchange b
Answer: C
b b
Question Status: New b b
6) Poorly performing financial markets can be the cause of
b b b b b b b b
A) wealth.
B) poverty.
C) financial stability. b
D) financial expansion. b
Answer: B b
Question Status: Revisedb b
2|P a g e
b b b b b
, 7) The bond markets are important because they are
b b b b b b b
A) easily the most widely followed financial markets in the United States.
b b b b b b b b b b
B) the markets where foreign exchange rates are determined.
b b b b b b b
C) the markets where interest rates are determined.
b b b b b b
D) the markets where all borrowers get their funds.
b b b b b b b
Answer: C b
Question Status: Revised b b
8) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100
b b b b b b b b b b b b b b b b b b
bper year) is commonly referred to as the
b b b b b b b
A) inflation rate. b
B) exchange rate. b
C) interest rate. b
D) aggregate price level. b b
Answer: C b
Question Status: Previous Edition
b b b
9) Compared to interest rates on long-term U.S. government bonds, interest rates on three-month Treasury
b b b b b b b b b b b b b
bbills fluctuate and are
b on average. b b
A) more; lower b
B) less; lower b
C) more; higher b
D) less; higher b
Answer: A
b b
Question Status: Previous Edition
b b b
3|P a g e
b b b b b
